Please ensure Javascript is enabled for purposes of website accessibility

Why Osprey Technology Acquisition Stock Popped Again Today

By Rich Smith - Feb 19, 2021 at 12:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Space news is good news for space stocks -- and space SPACs.

What happened

I think you've got to hand it to Osprey Technology Acquisition Corp. (SFTW) -- yesterday was a great day to announce a space-related merger deal.

As you've probably heard, on Thursday afternoon, NASA announced the successful landing on Mars of its Perseverance rover and Ingenuity drone helicopter. And that was the same day that Osprey announced its plans to acquire "real-time geospatial intelligence, imagery, and data analytics company" BlackSky Holdings, reverse-merging it with the SPAC to take it public.  

Shares of Osprey -- the shell company that will bring BlackSky public -- popped 27.5% on the news Thursday, and they were up another 10.4% as of noon EST Friday.

Spy satellite over Earth

Image source: Getty Images.

So what

So what do we know about this soon-to-be-public BlackSky? According to Osprey, it "is a first mover in real-time Earth observation leveraging the innovative performance and economics of small satellite constellations," and intends to eventually grow its orbital assets to "30 high resolution multi-spectral satellites capable of monitoring locations on Earth every 30 minutes, day or night."

Osprey hasn't revealed a lot about the company's financials, other than to say that it has a "pipeline of opportunities" that nearly tripled over the last 12 months to $1.7 billion.  

I first heard of the company about four years ago, at which time it was a division of privately held Spaceflight Industries (that's the one that sold its satellite-rideshare business, Spaceflight Inc., to Mitsui early last year). According to data from S&P Global Market Intelligence, BlackSky remains a subsidiary of Spaceflight Industries, but there was no mention of the parent company in Osprey's press release.

Presumably, it has been, or will soon be, spun off from Spaceflight Industries.

Now what

Whoever owns BlackSky now, Osprey will own it soon -- and retail investors will be able to, too. Osprey predicts that when the deal happens in or around July, BlackSky will become a public company with a pro forma equity value of $1.5 billion. Add back $450 million in cash, and the targeted market capitalization of the stock looks like $1.95 billion.

When you consider that Osprey currently has a market cap of barely $605 million, this appears to suggest the stock will triple in value in five months. No wonder investors are excited.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Osprey Technology Acquisition Corp. Stock Quote
Osprey Technology Acquisition Corp.
SFTW

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.