Firefly Aerospace (FLY) Stock Soars in Pre Market after Alpha Rocket Launch Success

Firefly Aerospace Inc. FLY +6.24% ▲ shares moved higher yesterday after the firm sent its Alpha rocket into orbit on a new launch. The mission marks a key step for the space firm after a run of past issues with the same rocket.

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Yesterday, FLY shares rose 6.24% to close at $20.60, though it still sits more than 50% below its IPO shares price. However, in pre-market trading, shares continued to climb, rising nearly 16% (at the time of writing). The rise shows that some traders see the launch as a good sign for the firm’s rocket work.

Alpha Rocket Reaches Orbit after Past Setbacks

On Wednesday, the rocket lifted off at 5:50 p.m. from Vandenberg Space Force Base in the U.S. state of California. The launch then placed a demo payload for Lockheed Martin LMT -0.27% ▼ into orbit. The firm said the mission met its goals and proved the Alpha rocket can reach orbit as planned.

The win comes after a rough period for the Alpha line. A test blast in September last year broke part of the rocket during a ground run. Firefly said the blast came from a fluid mix due to an operations error. In the firm’s words, “fluid contamination caused by an operational error led to the explosion.”

In turn, the firm ran a full review of its work steps and tech checks. Firefly Chief Executive Officer Jason Kim said the firm took time to fix its workflow. “Over the last several months, we took a hard look at our processes across engineering, production, test, integration, and operations and invested the time required to make a series of improvements to ensure a higher level of quality and reliability.”

Alpha Program Seeks a Fresh Start

As described above, the Alpha rocket has had a mixed run so far. Past launch tries have at times failed or set the craft in the wrong orbit. One flight in April last year lost a Lockheed Martin satellite. After that event, the U.S. Federal Aviation Administration paused the rocket’s operations while it conducted a probe. The FAA then cleared Alpha to fly again in August.

Now the new launch may help the firm show that its fix plan has worked. At the same time, Firefly runs more space work lines. The firm is also set to build the Eclipse rocket with Northrop Grumman NOC -0.24% ▼ . The two firms aim to serve the U.S. government and space jobs.

In addition, the firm is working on its Blue Ghost moon lander. The craft last year made a soft moon landing and stood up in one piece. Firefly now aims to send the next Blue Ghost craft to the far side of the moon in late 2026.

Is FLY a Good Stock to Buy?

On the Street, Firefly Aerospace has a Hold consensus view, based on three analysts’ ratings. The average FLY stock price target is $32.50, implying a 57.77% upside from the current price.

Disclaimer & DisclosureReport an Issue