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Despite the recent controversial news related to the shares of SPCE, the entire outlook for the industry remains bullish for 2021.
The shares of Virgin Galactic Holdings Inc (NYSE: SPCE) which opened the week to a bullish performance has rallied further by closing by 4.01% on Tuesday despite the fact that one of the space travel company’s largest shareholders, Abu Dhabi sovereign-wealth fund Mubadala Investment reduced its stake in the company and Susquehanna Financial analyst Charles Minervino downgraded the shares.
As reported by The Street, Mubadala Investment reduced its stake by 5.04% to 11.8 million shares from 7.08% or 14.9 million. The move is unprecedented especially at this time when the stock has rallied as much as 28% this January amidst a strong sentiment on the space travel industry this year. For comparison, the broader market index, S&P 500 Index (INDEXSP: .INX) has seen just about 0.3% this year.
On the other hand, Susquehanna’s Charles Minervino downgraded the stock from positive to neutral, the equivalent of a hold from buy. Despite this downgrade, however, the analysts revised his price target for the shares to $32, a great boost from the $25 set back in October 2020.
Despite these apparent bearish positions on the stock, the investors appear unmoved as the coin rallied by 4.01% to close Tuesday’s trading session at $31.65 per share. Barron’s also noted that the cut in shares by Mubadala Investment may not be necessarily bearish as the firm may be taking profits in line with the rally the company has enjoyed thus far.
The move by the shareholder came following a filing made by Virgin Galactic in December 2020 giving its shareholders the right to sell up as much as 113 million shares at the end of a lockup period. The company noted that it will not be taking any profits from the offering of the shares.
SPCE and General Space Shares Remain fullish For 2021
Despite the recent developments in the shares of SPCE, the most renowned leader in the space tourism business, the entire outlook for the industry remains bullish for 2021. Earlier, Coinspeaker reported that Catherine Wood’s Ark Invest, the operator of the world’s largest Exchange Traded Funds (ETF), is planning on launching a new Space Exploration ETF. The announcement spurred the shares of industry leaders including SPCE, and Maxar Technologies Inc (NYSE: MAXR) amongst others to soar to new yearly highs.
With great space travel milestones expected from the space travel and technology firms this year, the anticipation of making commercial space travel a reality is drawing near much more by the day, and this prospect position the shares of related companies as the delight of investors this year.