Intuitive Machines (NASDAQ: LUNR) crashed more than 15% today after the space infrastructure firm announced a sizable financing round, the terms of which didn’t sit well with investors.
This sharp reversal comes just as LUNR appeared to be gaining escape velocity, having reached a 52-week high of over $23 in late January.
Despite the turbulence, Intuitive Machines is moving aggressively to cement its status as a “space prime,” though the cost of that ambition is weighing on LUNR shares’ short-term sentiment.
Here’s what triggered a sell-off in Intuitive Machines’ stock
Intuitive Machines’ stock slipped this morning as the management announced a $175 million equity investment led by institutional players.
While capital is the lifeblood of any space venture, the terms of this deal left a bitter taste for their existing shareholders.
LUNR priced its new shares at “$15.12” each, a deep discount to its previous close at “$18.90”.
The agreement flooded the market with 11.6 million new shares, triggering immediate dilution that shrunk the “slice of the pie” owned by current investors.
Shareholders viewed this steep discount as a signal that Intuitive Machines needed to replenish its coffers rather urgently after its massive $800 million acquisition of “Lanteris Space Systems” last month, further adding fuel to the tailspin on February 25.
Is it worth buying LUNR shares on today’s pullback
For long-term investors, LUNR stock is worth buying on this dip, given that the $175 million isn’t just “keep-the-lights-on” money; it’s growth capital designed to accelerate Lanteris integration.
The aforementioned acquisition is transformative, shifting Intuitive Machines from a lunar lander startup into a vertically integrated giant capable of building, launching, and operating satellites.
The funds are earmarked for expanding the Near Space Network Services (NSNS) and scaling the flight-proven 1300 series satellite platform.
By owning both manufacturing and the data delivery system, LUNR is positioning itself to capture high-margin recurring revenue from NASA and the Department of Defence – moving away from the volatile “one-off mission” model.
What could drive Intuitive Machines higher in the near-term
Intuitive Machines currently boasts a huge backlog of nearly $1 billion (post-Lanteris integration), providing clear visibility into revenue through 2027.
LUNR is worth owning also because it’s now trading at a much more attractive valuation of about 9x sales, while holding key supports coinciding with its 100- and 200-day moving averages (MAs), indicating the broader uptrend remains intact.
More importantly, the next few months are packed with catalysts: the company is a frontrunner for NASA’s Lunar Terran Vehicle (LTV) contract and is awaiting decisions on new Commercial Lunar Payload Services (CLPS) awards.
With a combined entity revenue projected to exceed $850 million, and a path to positive adjusted EBITDA by the end of 2026, Intuitive Machines is no longer a speculative “moonshot” – it’s the backbone of the new lunar economy.
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