Virgin Galactic (NYSE:SPCE) Shares Gap Down Following Weak Earnings

Shares of Virgin Galactic Holdings, Inc. (NYSE:SPCEGet Rating) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $8.19, but opened at $7.21. Virgin Galactic shares last traded at $7.15, with a volume of 250,928 shares changing hands.

The company reported ($0.43) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.36) by ($0.07). Virgin Galactic had a negative net margin of 8,758.29% and a negative return on equity of 41.32%. The business had revenue of $0.36 million for the quarter, compared to the consensus estimate of $0.08 million. During the same period in the previous year, the firm earned ($0.39) EPS. The company’s revenue was down 37.5% on a year-over-year basis.

Analyst Ratings Changes

Several brokerages recently weighed in on SPCE. Truist Financial downgraded shares of Virgin Galactic from a “hold” rating to a “sell” rating and dropped their target price for the stock from $8.00 to $5.00 in a report on Friday. Wells Fargo & Company began coverage on shares of Virgin Galactic in a report on Tuesday, June 21st. They issued an “underweight” rating and a $4.00 target price for the company. Canaccord Genuity Group downgraded shares of Virgin Galactic from a “buy” rating to a “hold” rating and dropped their target price for the stock from $36.00 to $8.00 in a report on Friday, May 6th. Finally, Canaccord Genuity Group downgraded shares of Virgin Galactic from a “buy” rating to a “hold” rating and dropped their target price for the stock from $36.00 to $8.00 in a report on Friday, May 6th. Five analysts have rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $13.00.

Institutional Trading of Virgin Galactic

Several institutional investors have recently modified their holdings of SPCE. New York State Common Retirement Fund boosted its holdings in Virgin Galactic by 0.6% in the 1st quarter. New York State Common Retirement Fund now owns 203,900 shares of the company’s stock valued at $2,015,000 after purchasing an additional 1,300 shares during the last quarter. Itau Unibanco Holding S.A. grew its holdings in Virgin Galactic by 73.6% during the 4th quarter. Itau Unibanco Holding S.A. now owns 3,086 shares of the company’s stock worth $43,000 after acquiring an additional 1,308 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of Virgin Galactic by 5.1% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 30,097 shares of the company’s stock valued at $297,000 after buying an additional 1,460 shares in the last quarter. Handelsbanken Fonder AB boosted its holdings in shares of Virgin Galactic by 5.0% in the 2nd quarter. Handelsbanken Fonder AB now owns 31,600 shares of the company’s stock valued at $190,000 after buying an additional 1,500 shares in the last quarter. Finally, Canada Pension Plan Investment Board boosted its stake in Virgin Galactic by 177.5% during the 1st quarter. Canada Pension Plan Investment Board now owns 2,586 shares of the company’s stock worth $25,000 after purchasing an additional 1,654 shares during the period. Institutional investors and hedge funds own 29.70% of the company’s stock.

Virgin Galactic Stock Performance

The stock has a market cap of $1.75 billion, a price-to-earnings ratio of -4.90 and a beta of 0.71. The stock’s 50 day moving average is $6.85 and its two-hundred day moving average is $7.82. The company has a current ratio of 6.65, a quick ratio of 6.44 and a debt-to-equity ratio of 0.55.

Virgin Galactic Company Profile

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Virgin Galactic Holdings, Inc focuses on the development, manufacture, and operation of spaceships and related technologies for conducting commercial human spaceflight and flying commercial research and development payloads into space. It is also involved in the ground and flight testing, and post-flight maintenance of its spaceflight system vehicles.

Further Reading

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