The Case for Selling SpaceX Stock Before its December Lock-Up Expiration
SpaceX could be dead money until insiders have had the opportunity to sell shares.
Overview
The initial public offering (IPO) of Space Exploration Technologies (NASDAQ: SPCX) was a worldwide spectacle. The anticipation was intense as Elon Musk sold shares in the company to the public for the first time. SpaceX, as the company is more commonly known, raised $75 billion from the IPO, with the underwriter's overallotment bringing the total to more than $85 billion. A lot of insiders got rich, but there's a catch that could keep the stock rangebound through at least December. Here's what you need to know.
The IPO price for SpaceX was $135. But when the shares opened, the stock started trading at $150. Given all the excitement around the company's IPO, it isn't surprising that the stock quickly jumped, peaking at just over $200 per share. But once the enthusiasm faded, it crashed to $108. That's not exactly shocking, with the stock now back in the $150 range.
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Originally published at www.fool.com.