Insiders and Early Investors Are Selling SpaceX Stock and Index Funds Are Buying It. Which Side Do You Want to Be On?
Could IPO lockup expirations create buying opportunities for long-term investors?
Overview
Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, shattered records with its IPO, issuing almost $86 billion in stock. And while management favored retail investors with its IPO allocations, institutional investors still held a huge amount of the stock as of the end of the quarter. Filings with the SEC revealed 1,941 professional investment managers and corporate investors held more than $600 billion worth of the stock as of June 30.
Many of those shareholders were required to hold their shares through July, but in August, they finally got the opportunity to cash out some of their investments, and they'll have even more opportunities in September and October. Meanwhile, index funds will be buying up shares as more of the stock becomes publicly available.
Details
The competing forces are important for everyone to understand, from individual SpaceX shareholders to index fund investors.
Source
Originally published at www.fool.com.