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Virgin Galactic (c) Virgin Galactic (c) Virgin Galactic (c) Virgin Galactic
The stock of a pioneer in space travel
Virgin Galactic is a company that specializes in space travel
has been on a wild ride, with prices more than tripling in May and June. The stock’s gyrations may have made both investors and analysts sick. The stock of Virgin Galactic (ticker: SPCE) fell below $15 in early May after the business announced flight test delays that would delay the start of commercial operations. However, flight tests resumed in late May, and the firm acquired its permission to carry paying passengers from the Federal Aviation Administration in June. In late June, the stock surpassed $55.
In recent Wednesday trading, Galactic shares fell 5.1 percent to $43.97. At the nadir in May, four out of nine analysts tracking Galactic stock, or 44 percent, recommended that investors buy the stock. Shares were given a Sell rating by none of the analysts. The average analyst price estimate for the stock was around $30.
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Three out of ten investors, or 30%, rank stocks Buy as of Wednesday. The average analyst price objective for the stock has risen to around $35 per share. In fact, Cowen analyst Jeffery Osborne had to raise his price target to $51 from $23 on Wednesday in order to preserve his Buy rating. In his research study, Osborne noted, “Greater visibility towards revenue generating bodes well.” Michael Ciarmoli of Truist rates the company as a Buy, and his price objective has been $50 since May. Ken Herbert of Canaccord Genuity is the third Buy-rated analyst; he began covering the stock in late May with a $35 price objective, which is still in place. However, following Galactic’s recent increases, some analysts opted to downgrade the stock. Myles Walton of UBS downgraded shares from Buy to Hold on Tuesday, and raised his price objective to $45 from $36. On June 30, BofA Securities analyst Ronald Epstein lowered shares from Buy to Sell, but kept his $41 price target. On June 28, Alembic Global Advisors analyst Peter Skibitski downgraded his rating from Buy to Hold, and his price target was raised to $36 from $28 a share. It’s been a busy month for Galactic analysts, as well as a fascinating one for investors who have been watching Wall Street acclimate to the stock’s big rise. Of course, analysts are busy because the company is active. A test flight with Sir Richard Branson, the company’s creator, is scheduled for July 11. To contact the editors at Barron’s, send an email to editors@barrons.com./n
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