SpaceX Stock: 3 Things to Watch Before the December Lock-Up Cliff
SpaceX has been volatile since its IPO three months ago. That likely won't change anytime soon.
Overview
Recent IPOs tend to be volatile for several reasons, including the fact that once a company goes public, insiders aren't allowed to sell their shares for a set period, called the lockup period. Once they are free to sell, whether they do so in droves or largely refrain can either sink or jolt the stock. That brings us to Space Exploration Technologies (NASDAQ: SPCX), the space company that beat the record for the largest IPO in history back in June. SpaceX set up a staggered insider share unlock, meaning shares owned by the company's insiders would become eligible for sale on different dates.
The first was on Aug. 6, and there have been several since; SpaceX passed that test with flying colors. However, hundreds of millions more shares will become eligible for sale by insiders by year-end, including 342 million on Dec. 8. How will the stock react to that? Here are three things for investors to watch to try to answer that question.
Image source: The Motley Fool.
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Originally published at www.fool.com.