ASTR Stock Is Significantly Undervalued at These Levels

While many traders are dazzled by other commercial space flight companies, there’s an under-the-radar opportunity with Astra Space (NASDAQ:ASTR) stock.

Source: Andrzej Puchta / Shutterstock.com

I expect that very soon, both the share price and the trading volume of ASTR stock will fly into the skies.

Astra Space launches satellites as a business venture and is seeking to steal some of the thunder from billionaire amateur space explorers like Richard Branson, Jeff Bezos and Elon Musk.

InvestorPlace contributor Alex Sirois asserted that ASTR stock is undervalued, and I tend to agree.

The share price is surprisingly low, even after Astra Space reached a number of key milestones. One of those milestones involves a test launch which, as we’ll discover, set an industry precedent.

So strap in, folks, and prepare for both turbulence and excitement as we explore the astronomical potential of Astra Space.

A Closer Look at ASTR Stock

Could it have been meme stock mania? That’s a valid question as ASTR stock shot up like a rocket in early February.

A double-top pattern was formed when the stock propelled from the $10 area to $21, not once but twice.

In mid-February, however, the share price started to come back down to earth for a harsh landing.

It’s a textbook example of why I typically don’t chase stocks after parabolic price moves.

In any case, the early-year run-up may have been attributable to Reddit users, though this would be difficult to prove or disprove.

Suffice it to say that ASTR stock is volatile, and isn’t really meant for large positions. You’ll definitely want to stay small with this stock and have an exit strategy if there’s a failure to launch. It trades at below $10 today.

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Again, let me reiterate Sirois’s sentiment that there’s a good value here as the share price remains low and Astra Space appears to be making good progress in its space-flight ambitions.

An Industry First

Not long ago, Astra Space proudly announced the successful orbital ignition of its Apollo Fusion thruster on board the Spaceflight Sherpa-LTE1 orbital transfer vehicle (OTV).

Mike Cassidy, Astra’s vice president of product management, explained that “these on-orbit test results provide further validation for several programs for which we are supplying propulsion systems.”

In other words, prepare for more launches from Astra Space in the near future. As Cassidy put it, “We expect to deliver thrusters for additional satellites over the next quarter.”

As a follow-up, Philip Bracken, vice president of engineering at Spaceflight, noted that the Sherpa OTV’s flight marks a precedent.

“This represents the industry’s first fully functional electric propulsion OTV,” Bracken clarified.

More Milestones

The successful OTV launch should, by itself, be enough to get Astra Space’s stakeholders excited.

Yet, this hasn’t been the company’s only recent milestone. Astra Space co-founder, CEO and Chairman Chris Kemp listed some other of his company’s impressive achievements.

For one thing, Astra completed the Holicity merger and associated PIPE transaction, thereby obtaining significant funding (it added $464 million to the company’s balance sheet).

Second, the company won its second NASA contract in a row.

Third, Astra signed a long-term launch deal with Planet Labs.

It’s also worth reporting that Astra Space began the expansion of its Alameda factory to 350,000 square feet, representing a tripling of its current capacity.

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Finally, we can add one further bragging point: Astra Space had cash, cash equivalents and restricted cash totaling $452.4 million as of June 30. That’s not a bad capital position to be in.

The Bottom Line on ASTR Stock

I concur with Sirois that ASTR stock is undervalued. We’ve already seen the share price at much higher levels.

Certainly, Reddit users can pump the stock back to its all-time high, if they choose to do so, but there’s no need for meme-stock traders to intervene. Given Astra Space’s achievement of multiple milestones, there’s plenty of rocket fuel to go higher.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarketsFinom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. 

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