Intuitive Machines' stock rockets as next moon mission approaches

By James Rogers

Shares of space-exploration company saw their biggest gain since March 26

Shares of Intuitive Machines Inc. surged 10.6% in Tuesday's session as the space-exploration company edges closer to its next mission to the moon.

The stock (LUNR) registered its biggest gain since March 26, when it rose 15.9%, according to Dow Jones Market Data. Intuitive Machines shares ended the day's regular trading session at $3.86, their highest close since June 13, when they finished at $4.03.

Short interest as a percentage of Intuitive Machines' public float of shares is 10.2%.

Related: These space stocks deserve attention, analysts say

Intuitive Machines' IM-1 mission made history earlier this year when the company's Odysseus lander became the first commercial lander to successfully land on the moon's surface. The company's IM-2 mission is planned for late 2024, although Intuitive Machines has not yet announced a date for the launch.

On Monday, Cantor Fitzgerald reiterated its overweight rating for Intuitive Machines' stock.

"With the IM-1 Mission successfully completed, management has switched focus to its next IM-2 Mission, which will once again target the south pole of the moon, where there is the possibility of finding water," analyst Andres Sheppard wrote in Cantor's most recent note on the company. "On its 1Q24 earnings call, management reaffirmed that it's still targeting to launch the IM-2 Mission in 2H24, (we expect in 4Q24), followed by its IM-3 Mission in 2025E." The IM-2 mission is now about 85% complete, Cantor Fitzgerald noted.

The IM-1 mission thrust Intuitive Machines into the spotlight when the Odysseus lander reached the moon on Feb. 22, sending the company's stock soaring. Intuitive Machines subsequently said that the lander had "permanently faded" and has no chance of waking up on the moon.

Related: Intuitive Machines says Odysseus has 'permanently faded' on the moon, but is planning another mission this year

The company's stock surged again in April, boosted by a $30 million lunar-rover contract. Intuitive Machines' moon missions are supporting NASA's Commercial Lunar Payload Services initiative, which is part of the Artemis program that aims to eventually return U.S. astronauts to the moon.

Last year, the Government Accountability Office validated a $719 million NASA award to an Intuitive Machines-led team for the space agency's Omnibus Multidiscipline Engineering Services III contract.

"On its 1Q24 earnings call, [Intuitive Machines] disclosed that it had recognized $42M in revenue in 1Q24 from this contract," Sheppard wrote in the Cantor Fitzgerald note. "More importantly, we continue to see this win as validation of the company's experience in developing spacecraft, near-space communications and autonomous systems, and we expect [Intuitive Machines] to collect $11M-$13M in monthly revenues from this contract (over the next five years) after first collection started on 12/1/2023."

All of the five analysts surveyed by FactSet have a buy rating for Intuitive Machines.

Related: Intuitive Machines' stock surges, boosted by $30 million NASA lunar rover contract

Intuitive Machines shares are up 51.1% in 2024, outpacing the S&P 500 index's SPX gain of 15.5%.

-James Rogers

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07-02-24 1837ET

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