Momentus Inc. (NASDAQ:MNTS) stock moved lower in Friday premarket trading after the space infrastructure company announced a $25 million registered direct offering of 1.85 million common shares priced at-the-market under Nasdaq rules.

The decline came despite a positive broader market backdrop, with the Nasdaq rising 0.13% and the S&P 500 gaining 0.25%.

The offering is expected to close on or about June 15, with proceeds earmarked for working capital and general corporate purposes. A.G.P./Alliance Global Partners is acting as the sole placement agent.

Investors may be reacting to potential shareholder dilution, as the offering increases the company’s outstanding share count.

The stock pullback comes a day after Momentus participated in a broader rally across space-related stocks as investors positioned ahead of the anticipated public debut of SpaceX.

Smaller, high-volatility space stocks often experience sharp reversals after rapid advances as short-term traders lock in gains when momentum begins to fade.

Momentus develops satellite, in-space transportation, and orbital infrastructure solutions for government and commercial customers.

Technical Signals Show Momentum Cooling

Despite Friday’s drop, Momentus remained above several key moving averages. The stock traded about 9.4% above its 20-day simple moving average of $12.12 and 10.7% above its 200-day simple moving average of $11.98.

However, shares remained significantly extended above intermediate trend levels, trading 68.5% above the 50-day SMA and 101.2% above the 100-day SMA. Such gaps can increase the likelihood of sharp pullbacks as prices revert toward longer-term averages.

Momentum indicators also weakened. The moving average convergence divergence, or MACD, remained below its signal line, while the histogram stayed negative. That setup suggests bullish momentum has slowed following the recent rally.

Technically, resistance sits near $18.36, around the 200-day exponential moving average. Support is near $11.98, which aligns with the 200-day SMA.

Momentus Price Action

MNTS Stock Price Activity: Momentus shares were down 20.25% at $13.00 at the time of publication on Friday, according to Benzinga Pro data.

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