Momentus Inc. (MNTS) is trying to shake off Monday's brutal selloff, with shares climbing Tuesday after getting absolutely hammered on news of a reverse stock split. Here's what's happening with the commercial space company.
The Recovery Story
Momentus announced Tuesday that it completed environmental testing for its Vigoride-7 orbital service vehicle, hitting a critical milestone ahead of its next launch. The spacecraft successfully passed thermal and vibration testing, proving it can handle the intense conditions of launch and the harsh space environment.
Vigoride-7 is scheduled to launch aboard SpaceX's Transporter-16 mission no earlier than March 2026, carrying payloads for multiple customers.
"Completing thermal and vibration testing is a critical milestone for Vigoride-7. These campaigns validate that our spacecraft can withstand the demanding conditions of launch and the space environment, giving our customers confidence in mission success," said Tom Malko, SVP of Engineering and Operations at Momentus.
About That Reverse Split
The positive news comes as shares are recovering from Monday's carnage, when Momentus stock nearly got cut in half. The selloff followed the company's announcement that it canceled its special meeting of stockholders and confirmed a 1-for-17.85 reverse stock split.
The mechanics are straightforward: Every 17.85 shares of common stock will automatically combine into one share when the split takes effect at 5 p.m. ET Wednesday. Momentus stock will begin trading on a split-adjusted basis when markets open Thursday morning.
Why do this? The company says the reverse split is designed to maintain compliance with Nasdaq's minimum bid price requirement. Management also believes the higher stock price will make shares more attractive to both institutional and retail investors.
Price Action
Momentus shares were up 4.75% Tuesday, trading just under 49 cents at publication time. That's a relief after Monday's 45.24% decline, though investors remain underwater from recent levels.
