Astra Space Inc.

Astra Space, Inc. (NASDAQ: ASTR) designs, tests, manufactures, and operates launch services and space products and services. The Company’s services and products are enabled by constellations of small satellites in Low Earth Orbit (LEO). Its system consists of a small launch vehicle and mobile ground infrastructure that can fit inside standard shipping containers for deployment anywhere in the world where its spaceports are located.

Recent Financial and Business Updates:

• Astra Space, Inc. Announces Reverse Stock Split: Astra Space, Inc. has received approval from its Board of Directors for a 1-for-15 reverse stock split of its Class A and Class B common stock. This reverse stock split is set to become effective on September 13, 2023, and trading of the adjusted Class A Common Stock will begin on September 14, 2023, under the ticker symbol "ASTR," with no change to the par value or authorized shares.
• Recent Business Highlights:
  • Astra Space, Inc. has shipped the first four Astra Spacecraft Engines™ from its Sunnyvale spacecraft engine manufacturing facility.
  • Approximately 77% of non-delivery customer milestones related to Astra Spacecraft Engines™ have been successfully completed.
  • The Service Readiness Review (SRR) for Astra's Space Force STP-29B mission has been concluded.
  • Astra announced the closure of a Senior Secured Notes facility offering and ATM program.

• Second Quarter 2023 Financial Highlights:

• GAAP Gross Profit for the three months ended June 30, 2023, amounted to USD 0.3 million.
• GAAP Net Loss totalled USD 14.0 million for the same period.
• Adjusted Net Loss stood at USD 33.7 million.
• Adjusted EBITDA Loss amounted to USD 33.1 million.
• Capital expenditures during the quarter totalled USD 3.2 million.
• The company's cash, cash equivalents, and marketable securities amounted to USD 26.3 million.

Technical Observation (on the daily chart)

Currently, the stock has undergone a correction of about 77.12% from its peak within the last 52 weeks, a milestone reached on September 19, 2022. In terms of technical indicators, the Relative Strength Index (RSI) reflects a value of 28.45 over a 14-day period, currently in oversold conditions. It's expected that there may be a period of consolidation before a potential shift in the trend direction or a continuation of the current downward trajectory. Furthermore, the stock's current price is situated below both the 21-day Simple Moving Average (SMA) and the 50-day SMA, which are widely recognized trend-following indicators. This placement underscores a bearish momentum in the short to medium term, and these moving averages may serve as active short-term resistance levels.

The stock's significant correction from its yearly high indicates a notable shift in investor sentiment, with the RSI pointing towards a potential stabilization soon. However, the presence of these moving averages below the current price suggests that the stock faces resistance in its attempts to regain its previous levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a “WATCH” rating is recommended for Astra Space, Inc. (NASDAQ: ASTR) at its current price of USD 2.40 on September 18, 2023, at 06:55 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 18, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.