By
Godfrey Benjamin
August 10th, 2023
Virgin Galactic stocks enjoyed a profitable 2020 despite the coronavirus market disruptions and may have a bright future this year again.
Virgin Galactic Holdings Inc (NYSE: SPCE) stock closed Thursday’s trading session at $33.27, up 3.87%. Meanwhile, SPCE stocks were down approximately 1.95% during Friday’s pre0market. The volatility is a result of investors’ uncertainty with the company’s future based on its performance. Having failed in its prior flight test at the tail end of last month, Virgin Galactic is set to test simulation glide and approach-to-land phase using the VMS EVE mothership. “Our mothership, VMS EVE, will be conducting a flight from Spaceport America, New Mexico, today and another tomorrow. … to simulate SpaceShipTwo Unity’s glide and approach-to-land phase,” the company previously announced.
Virgin Galactic Performance amid Its Plans for VMS EVE Flights
Virgin Galactic stocks enjoyed a profitable 2020 despite the coronavirus market disruptions. According to metrics provided by MarketWatch, Virgin Galactic stock rallied approximately 93.32% last year. Besides, they are up approximately 73.82%, and 40.20% in the past three months and year-to-date respectively.
Investors and affiliated analysts remain optimistic the company will deliver something concrete this year. The company has a reported market valuation of approximately $7.51 billion with 195.59 million outstanding shares. Notably, having been rated 9 times, Virgin Galactic stocks received an average of a Buy Rating.
This comes despite the increasing competition from other private space companies including SpaceX led by Elon Musk and also Blue Origin by Jeff Bezos. However, the demand and the room for expansion are still huge in the space exploration industry.
According to Virgin Galactic, last month’s test failure was attributed to a loss of computer signal that caused the engine to malfunction. The ongoing simulation tests will be a huge determining factor for the next Virgin Galactic stock. A successful test would imply the company can go ahead with a physical test, which would in turn attract more investors. But a vice verse situation would be observed in the simulations are deemed a failure.
Previously, one of Virgin Galactic Holding’s largest shareholders, Abu Dhabi sovereign-wealth fund Mubadala Investment, reduced its shares with the company. The Abu Dhabi investment firm cut its investment to 11.8 million Virgin Galactic shares, a 5.04% stake, as of January 14, from 14.9 million shares, a 7.08% stake, as of August 7. However, the firm indicated it reduced its Virgin Galactic shareholding in line with the SEC guidelines.
Meanwhile, Susquehanna downgraded its Virgin Galactic stock expectations to a neutral from positive. Notably, the firm set its price target for Virgin Galactic stock at $32.