Virgin Galactic (NYSE:SPCE) Shares Gap Down on Disappointing Earnings

Shares of Virgin Galactic Holdings, Inc. (NYSE:SPCEGet Rating) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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 the consensus estimate of ($0.36) by ($0.07). Virgin Galactic had a negative return on equity of 41.32% and a negative net margin of 8,758.29%. The firm had revenue of $0.36 million for the quarter, compared to analyst estimates of $0.08 million. During the same period in the prior year, the business earned ($0.39) earnings per share. Virgin Galactic’s revenue for the quarter was down 37.5% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on SPCE shares. Canaccord Genuity Group cut shares of Virgin Galactic from a “buy” rating to a “hold” rating and decreased their target price for the stock from $36.00 to $8.00 in a research report on Friday, May 6th. Wells Fargo & Company started coverage on shares of Virgin Galactic in a research report on Tuesday, June 21st. They issued an “underweight” rating and a $4.00 target price on the stock. Truist Financial cut shares of Virgin Galactic from a “hold” rating to a “sell” rating and decreased their target price for the stock from $8.00 to $5.00 in a research report on Friday. Finally, Canaccord Genuity Group cut shares of Virgin Galactic from a “buy” rating to a “hold” rating and decreased their target price for the stock from $36.00 to $8.00 in a research report on Friday, May 6th. Five analysts have rated the stock with a sell rating, five have assigned a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $13.00.

Institutional Trading of Virgin Galactic

A number of hedge funds have recently made changes to their positions in the company. New York State Common Retirement Fund raised its stake in shares of Virgin Galactic by 0.6% during the first 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 period. Itau Unibanco Holding S.A. raised its stake in shares of Virgin Galactic by 73.6% during the fourth quarter. Itau Unibanco Holding S.A. now owns 3,086 shares of the company’s stock valued at $43,000 after purchasing an additional 1,308 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Virgin Galactic by 5.1% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 30,097 shares of the company’s stock valued at $297,000 after purchasing an additional 1,460 shares during the period. Handelsbanken Fonder AB raised its stake in shares of Virgin Galactic by 5.0% during the second quarter. Handelsbanken Fonder AB now owns 31,600 shares of the company’s stock valued at $190,000 after purchasing an additional 1,500 shares during the period. Finally, Canada Pension Plan Investment Board raised its stake in shares of Virgin Galactic by 177.5% during the first quarter. Canada Pension Plan Investment Board now owns 2,586 shares of the company’s stock valued at $25,000 after purchasing an additional 1,654 shares during the period. Hedge funds and other institutional investors own 29.70% of the company’s stock.

Virgin Galactic Price Performance

The company has a market cap of $1.75 billion, a PE ratio of -4.90 and a beta of 0.71. The business’s 50 day moving average price is $6.85 and its 200-day moving average price is $7.82. The company has a quick ratio of 6.44, a current ratio of 6.65 and a debt-to-equity ratio of 0.55.

Virgin Galactic Company Profile

(Get Rating)

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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