The optimal short squeeze consists of a low float stock, high short data, and a strong catalyst. It is for that reason Intuitive Machines, Inc. (NASDAQ: LUNR) should be on investor’s radars thanks to its micro float and swelling short data that is about to collide with a momentous catalyst that gives it a major advantage among space stocks. With plans to execute a commercial moon mission in Q3, LUNR would be the first commercial entity to land on the moon and the mission would be the first moon landing since Apollo 17. In light of this, LUNR stock might witness a short squeeze if the mission is successful.
LUNR Stock News
As things stand, LUNR Stock might be an appealing short squeeze play among space stocks. It has a micro float of 329.41 thousand shares which makes it susceptible to running on news. That said, LUNR stock’s short interest increased by 1718% over the course of 3 months reaching 162%, and its float on loan increased by 1909% over the same period reaching 317%. Additionally, its cost to borrow is extremely high at 386% and its utilization is at 100%. Although LUNR is witnessing low trading volume, the stock might soar as a result of its upcoming catalyst as it could attract investors’ attention to the stock.
A Lunar Catalyst For A Lunar Short Squeeze
As far as space stocks catalysts go, a moon landing is extremely significant which is why LUNR’s MI-1 mission could put it on the map. LUNR intends to launch Nova-C in Q3 2023 on a commercial mission to the moon. If successful, IM-1 Nova-c will be the first commercial lunar lander which would be the first step towards creating a lunar commercial market. In this way, LUNR could increase its revenues drastically since it might monopolize this market. Additionally, if Nova-c lands on the moon it will be the first spacecraft to do so since Apollo 17 in 1972 – marking a significant achievement. The publicity alone may cause LUNR stock to run and reach new highs – especially with its high short data. Based on this, LUNR could be one of the space stocks to follow closely over the coming months in anticipation of this major catalyst.
LUNR Stock Financials
According to its latest Q1 report, LUNR’s assets increased QoQ from $67 million to $99.7 million. This increase in assets is partially due to LUNR’s cash balance increasing sharply from $25.7 million to $46.8 million. After its Q1 report was released, LUNR obtained an additional $13.6 million in cash due to warrant exercises which means that it currently has around 60.4 million in cash on hand. That said, liabilities also increased from $124.6 million to $220.8 million.
As for revenues, LUNR witnessed a slight decrease YoY from $18.4 million to $18.2 million. On the other hand, LUNR’s operating costs skyrocketed YoY from $22.9 million to $32.1 million – most likely due to preparation relating to the IM-1 mission. For that reason, LUNR’s net loss more than tripled from $1 million to $3.2 million.
Media sentiment
@SPACpicks is confident in LUNR’s long-term potential.
Technical Analysis
LUNR stock is in neutral trend trading in a sideways channel between its support at $7.1 and its resistance at $8.39. Looking at the indicators, LUNR is trading below the 200, 50, and 21 MAs. Meanwhile, the RSI is neutral at 57 and the MACD is approaching a bearish crossover.
As for the fundamentals, LUNR has an extremely promising catalyst in its first commercial lunar mission in Q3. If the mission is successful, it would cement LUNR as a serious player in the space sector. Given the stock’s extremely high short data, LUNR could witness a major short squeeze, and the upcoming mission could drive up interest in the stock and allow it to run on high volume – especially with its low float. With the stock trading near support, investors could find a good entry in LUNR stock at the current PPS in anticipation of its major catalyst in Q3.
LUNR Stock Forecast
Currently, LUNR is a prime short squeeze catalyst since a major catalyst is approaching in Q3. While LUNR is witnessing low trading volume lately, the stock could soar if more investors show interest in it. With this in mind, more investors might be attracted to LUNR stock as we approach the company’s first commercial mission to the moon which would be the first lunar mission since 1972. In light of this, LUNR is one of the space stocks worth keeping an eye on over the coming months.
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