SPCE Stock Up 7%, Virgin Galactic on Continuous Rebound After Series of Declines

UTC by Ibukun Ogundare · 3 min read
SPCE Stock Up 7%, Virgin Galactic on Continuous Rebound After Series of Declines
Photo: Virgin Galactic / Twitter

SPCE stock went higher after the news that Virgin Orbit, Virgin Galactic’s sister company, is ready to re-launch a satellite into orbit.

Virgin Galactic Holdings Inc (NYSE: SPCE) recorded a 6.81% increase in its stock on the 12th of January after a series of declines reaching the price level of $26.66. At press time, the spaceflight company’s stock is up 0.34% to $26.76 in the pre-market trading.

Last month, Virgin Galactic’s stock dropped 9% following a failed spaceflight test on the 12th of December. An earlier report by Coinspeaker added that Virgin Galactic shed 17% about two days after the aborted spaceflight test, resulting in the third-worst day trading ever in history for the spaceflight company. Additionally, the company’s stock also plunged 20% in five days.

According to the CEO of American spaceflight company Michael Colglazier, the flight did not get to its destination as earlier planned. The CEO noted that the spaceship’s onboard computer lost the connection that deliberately stopped the ignition. Despite the unexpected failure, the pilots were able to safely fly back to the company’s base of operation – Spaceport America.

Shortly after the aborted test, Virgin Galactic declined further by 4% in premarket trading on the 18th of December. The company’s stock dipped after its shareholders decided to sell 114 million shares.

Despite Virgin Galactic’s failed spaceflight test, which led to significant losses, investment banking company Credit Suisse (NYSE: CS) remains bullish on SPCE. The company’s analyst Robert Spingarn said Virgin Galactic had proven safe flight as the company’s pilots were able to land safely despite the unforeseen disruption. Hence, Credit Suisse maintained its price target on Virgin Galactic at $26.

Following the declines, Virgin Galactic’s stock started rebounding towards the end of 2020. On the 23rd of December, SPCE closed with a 5.30% gain.

Now, Virgin Galactic has been pulling in increases and climbed 10.53% over the last five days. On the 12th of January, the company’s stock grew by nearly7%. In the last one month, the spaceflight company jumped around 9% and upped over 22% in the last three months. SPCE also increased by 12.35% in its year-to-date record and gained 90.84% over the last twelve months.

Virgin Orbit Plans to Re-Launch Satellite Push Virgin Galactic (SPCE) Stock Higher

In a report, The Motley Fool highlighted the reason behind Virgin Galactic’s increase on the 12th of January. The report stated that the addition may be fuelled by an announcement by Virgin Galactic’s sister company, Virgin Orbit. According to the announcement, Virgin Orbit is ready to launch a satellite into orbit after completing a “Launch Readiness Review.” Notably, Virgin Orbit’s first official attempt to launch a rocket into orbit failed.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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