Last Updated: 15 Sep 2024
Executive Summary
Virgin Galactic Holdings Inc. (SPCE) is a space tourism company that is developing a reusable suborbital rocket and spacecraft system. The company has faced delays in its development program, but it is expected to begin commercial operations in 2023. Virgin Galactic has a strong brand and a large potential market, but it is also a risky investment. The company's stock price is volatile and it is not yet profitable.
Company Overview
Virgin Galactic was founded in 2004 by Sir Richard Branson. The company is headquartered in Las Cruces, New Mexico. Virgin Galactic's mission is to make space travel accessible to everyone. The company is developing a reusable suborbital rocket and spacecraft system that will carry six passengers and two pilots on a flight to the edge of space.
Virgin Galactic's rocket system is called LauncherOne. LauncherOne is a two-stage rocket that is launched from a modified Boeing 747 aircraft. The spacecraft is called SpaceShipTwo. SpaceShipTwo is a winged vehicle that is carried aloft by LauncherOne. Once SpaceShipTwo reaches a high altitude, it separates from LauncherOne and fires its own rocket engines to reach suborbital space.
Virgin Galactic has a strong brand and a large potential market. The company has already sold over 600 tickets for its space flights. Virgin Galactic's target market is wealthy individuals who are looking for a unique and unforgettable experience.
Fundamental Analysis
Virgin Galactic is not yet profitable. The company's revenue comes from ticket sales and research and development contracts. Virgin Galactic's operating expenses are high, and the company has a negative EBITDA margin.
Virgin Galactic's financial performance is expected to improve in the future. The company is expected to begin commercial operations in 2023. Virgin Galactic has a backlog of over 600 ticket sales, and the company is expected to generate significant revenue from these flights.
Virgin Galactic's stock price is volatile. The company's stock price has ranged from a high of $54.60 to a low of $5.26 over the past 52 weeks. Virgin Galactic's stock price is currently trading at $6.99.
Technical Analysis
Virgin Galactic's stock price is in a downtrend. The stock price has been falling since its high of $54.60 in February 2021. The stock price is currently below its 50-day and 200-day moving averages.
The technical indicators are bearish for Virgin Galactic. The relative strength index (RSI) is below 30, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also bearish.
Short Term Outlook
Virgin Galactic's stock price is likely to continue to decline in the short term. The stock price is in a downtrend and the technical indicators are bearish.
Long Term Outlook
Virgin Galactic's long-term outlook is more positive. The company is expected to begin commercial operations in 2023. Virgin Galactic has a strong brand and a large potential market. The company's stock price is likely to recover in the long term.
Analyst Recommendations
Analysts are divided on Virgin Galactic. Some analysts believe that the company is a good investment, while others believe that the company is too risky. The consensus analyst rating for Virgin Galactic is "hold."
