LUNR stock price analysis: is Intuitive Machines a good buy?

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Intuitive Machines (NASDAQ: LUNR) stock price jumped by more than 25% in the premarket as traders cheered a major NASA contract. The shares jumped to $13, the highest level since March 20 of this year, giving it a market cap of more than $875 million.

Intuitive Machines is a company that was established in 2013 to offer space exploration services. The company is building supply space product and services to support sustained robotic and human exploration to moon, mars, and beyond.

The main reason why the LUNR stock price is rising is that it received a major order from NADA. The deal, which is a joint venture with Space Network Solutions, will see them develop products for the Joint Polar Satellite System. In a statement, the company said:

"This win is of strategic importance, allowing Intuitive Machines to support NASA in designing, developing, and demonstrating critical technology required to support the emerging orbital servicing market, and a validation of the Company's experience in spacecraft development."

The other major recent news is that the company has been testing its Nova-C products as it prepares for the first mission to the moon that is scheduled for later this year. These tests subjected the lunar lander to low level vibration to excite the complete lander.

Therefore, if Intuitive Machines is successful, there is a likelihood that the company's business will continue growing. The firm's revenue jumped to $85.9 million in 2022, up from $72.6 million in the previous year. Its annual losses have also dropped, with its net loss coming at $6.4 million.

Intuitive Machines’ balance sheet is also relatively strong. It has a total debt of less than $20 million against over $25.8 million in cash and short-term investments.

LUNR chart by TradingView

The 4H chart shows that the Intuitive Machines stock price has been in trouble after crashing by more than 90% from the highest point in 2022. Recently, the stock has recovered modestly after it crashed to a low of $9.83. The stock rose to $14.22 after the company received the NASA contract. Its volume has also jumped.

However, it is unclear whether these gains will continue in the near term. Instead, I suspect that the shares will retreat to the next key psychological level at $10. A move above the key resistance point at $15 will invalidate the bearish view.

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