Virgin Galactic Holdings Inc. [NYSE: SPCE] slipped around -2.01 points on Monday, while shares priced at $20.14 at the close of the session, down -9.07%. The company report on May 1, 2021 that Virgin Galactic Reschedules First Quarter 2021 Financial Results and Conference Call In Response to Recent SEC Guidance Relating to Warrants Issued by SPACs.
Virgin Galactic Holdings, Inc. (NYSE: SPCE) (the “Company”), a vertically integrated aerospace and space travel company, announced that it has rescheduled the reporting of its financial results for the first quarter 2021 to following the close of the U.S. markets on Monday, May 10, 2021. Virgin Galactic will now host a conference call to discuss the results and provide a business update that day at 2:00 p.m., Pacific Time (5:00 p.m., Eastern Time). The Company is rescheduling its reporting due to the recent statement issued by the Securities and Exchange Commission (the “SEC”) on April 12, 2021 relating to the accounting treatment of warrants issued by special purpose acquisition companies (the “SEC Statement”).
The Company reported in a Current Report on Form 8-K that, following its review of the SEC Statement and consulting with its advisors, the Company will restate its consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The restatement is due solely to the accounting treatment for the warrants of Social Capital Hedosophia Holdings Corp. that were outstanding at the time of the Company’s business combination on October 25, 2019. The Company expects to file the restated financials prior to the new conference call date and estimates that it will recognize incremental non-operating, non-cash expense for each of the fiscal years ended December 31, 2020 and December 31, 2019. The Company does not anticipate that the restatement will impact its previously communicated non-GAAP financial metrics, including Adjusted EBITDA and free cash flow.
Virgin Galactic Holdings Inc. stock is now -15.13% down from its year-to-date (YTD) trading value. SPCE Stock saw the intraday high of $21.7222 and lowest of $20.01 per share. The company’s 52-week high price is 62.80, which means current price is +0.65% above from all time high which was touched on 02/04/21.
Compared to the average trading volume of 14.56M shares, SPCE reached a trading volume of 13420958 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Virgin Galactic Holdings Inc. [SPCE]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SPCE shares is $37.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SPCE stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Bernstein have made an estimate for Virgin Galactic Holdings Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on April 13, 2021. While these analysts kept the previous recommendation, Truist raised their target price to Buy. The new note on the price target was released on March 17, 2021, representing the official price target for Virgin Galactic Holdings Inc. stock. Previously, the target price had yet another raise from $35 to $50, while BofA Securities kept a Buy rating on SPCE stock. On February 10, 2021, analysts increased their price target for SPCE shares from 35 to 52.
The Average True Range (ATR) for Virgin Galactic Holdings Inc. is set at 1.70, with the Price to Sales ratio for SPCE stock in the period of the last 12 months amounting to 24280.78. The Price to Book ratio for the last quarter was 7.19, with the Price to Cash per share for the same quarter was set at 2.76.
How has SPCE stock performed recently?
Virgin Galactic Holdings Inc. [SPCE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.11. With this latest performance, SPCE shares dropped by -34.50% in over the last four-week period, additionally plugging by 10.78% over the last 6 months – not to mention a rise of 12.39% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SPCE stock in for the last two-week period is set at 29.40, with the RSI for the last a single of trading hit 25.06, and the three-weeks RSI is set at 33.66 for Virgin Galactic Holdings Inc. [SPCE]. The present Moving Average for the last 50 days of trading for this stock 29.82, while it was recorded at 22.36 for the last single week of trading, and 26.79 for the last 200 days.
Virgin Galactic Holdings Inc. [SPCE]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Virgin Galactic Holdings Inc. [SPCE] shares currently have an operating margin of -115581.51 and a Gross Margin at -4082.35. Virgin Galactic Holdings Inc.’s Net Margin is presently recorded at -114720.59.
Return on Total Capital for SPCE is now -46.54, given the latest momentum, and Return on Invested Capital for the company is -46.40. Return on Equity for this stock declined to -48.32, with Return on Assets sitting at -38.74. When it comes to the capital structure of this company, Virgin Galactic Holdings Inc. [SPCE] has a Total Debt to Total Equity ratio set at 4.15. Additionally, SPCE Total Debt to Total Capital is recorded at 3.99, with Total Debt to Total Assets ending up at 3.42. Long-Term Debt to Equity for the company is recorded at 3.73, with the Long-Term Debt to Total Capital now at 3.58.
Reflecting on the efficiency of the workforce at the company, Virgin Galactic Holdings Inc. [SPCE] managed to generate an average of -$331,756 per employee. Receivables Turnover for the company is 0.51 with a Total Asset Turnover recorded at a value of 0.00.Virgin Galactic Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 6.10 and a Current Ratio set at 6.30.
Earnings analysis for Virgin Galactic Holdings Inc. [SPCE]
With the latest financial reports released by the company, Virgin Galactic Holdings Inc. posted -0.3/share EPS, while the average EPS was predicted by analysts to be reported at -0.15/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -100.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SPCE.
Insider trade positions for Virgin Galactic Holdings Inc. [SPCE]
There are presently around $1,232 million, or 28.60% of SPCE stock, in the hands of institutional investors. The top three institutional holders of SPCE stocks are: VANGUARD GROUP INC with ownership of 11,260,343, which is approximately 1.66% of the company’s market cap and around 0.70% of the total institutional ownership; BLACKROCK INC., holding 5,436,425 shares of the stock with an approximate value of $120.42 million in SPCE stocks shares; and SUSQUEHANNA INTERNATIONAL GROUP, LLP, currently with $88.26 million in SPCE stock with ownership of nearly 0.581% of the company’s market capitalization.
Positions in Virgin Galactic Holdings Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 174 institutional holders increased their position in Virgin Galactic Holdings Inc. [NYSE:SPCE] by around 9,657,939 shares. Additionally, 132 investors decreased positions by around 9,622,357 shares, while 47 investors held positions by with 36,357,257 shares. The mentioned changes placed institutional holdings at 55,637,553 shares, according to the latest SEC report filing. SPCE stock had 77 new institutional investments in for a total of 2,242,443 shares, while 54 institutional investors sold positions of 3,944,477 shares during the same period.