Stock Traders Buy Large Volume of Virgin Galactic Call Options (NYSE:SPCE)

Key Points

• Virgin Galactic saw a significant increase in call options trading, with 43,851 call options purchased, representing a 142% increase over typical volumes.
• Several institutional investors have increased their holdings in Virgin Galactic, with Ameriprise Financial and others growing their stakes significantly during the fourth quarter.
• Virgin Galactic's stock price rose by 5.9% to $3.3350, with analysts issuing a consensus "Hold" rating and a target price of $4.81.

Virgin Galactic Holdings, Inc. (NYSE:SPCE - Get Free Report) was the target of unusually large options trading activity on Monday. Stock investors bought 43,851 call options on the company. Thisisanincreaseof142% compared to the typical volume of 18,113 call options.

Virgin Galactic Stock Down 0.5%

Shares of NYSE SPCE traded down $0.02 during trading hours on Friday, hitting $3.12. 1,595,090 shares of the stock were exchanged, compared to its average volume of 2,933,917. The company has a quick ratio of 3.38, a current ratio of 3.38 and a debt-to-equity ratio of 1.60. The company has a market cap of $179.39 million, a PE ratio of -0.34 and a beta of 2.01. The firm has a fifty day moving average price of $3.29 and a 200-day moving average price of $3.30. Virgin Galactic has a 12 month low of $2.18 and a 12 month high of $8.19.

Virgin Galactic (NYSE:SPCE - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported ($1.47) EPS for the quarter, topping the consensus estimate of ($2.12) by $0.65. The firm had revenue of $0.41 million during the quarter, compared to analyst estimates of $0.45 million. Virgin Galactic had a negative net margin of 17,828.03% and a negative return on equity of 98.94%. On average, sell-side analysts expect that Virgin Galactic will post -16.05 EPS for the current year.

Analyst Upgrades and Downgrades

SPCE has been the subject of several analyst reports. The Goldman Sachs Group started coverage on shares of Virgin Galactic in a report on Monday, June 30th. They issued a "neutral" rating and a $3.00 target price for the company. Wall Street Zen upgraded shares of Virgin Galactic from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Finally, Jefferies Financial Group cut their target price on shares of Virgin Galactic from $9.00 to $8.00 and set a "buy" rating on the stock in a research report on Friday, May 16th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Virgin Galactic presently has an average rating of "Hold" and a consensus target price of $4.81.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Federated Hermes Inc. raised its stake in shares of Virgin Galactic by 134.7% during the 1st quarter. Federated Hermes Inc. now owns 1,956,199 shares of the company's stock worth $5,927,000 after acquiring an additional 1,122,535 shares in the last quarter. Millennium Management LLC increased its stake in Virgin Galactic by 62.0% during the 4th quarter. Millennium Management LLC now owns 946,956 shares of the company's stock valued at $5,568,000 after purchasing an additional 362,421 shares in the last quarter. Geode Capital Management LLC increased its stake in Virgin Galactic by 19.1% during the 4th quarter. Geode Capital Management LLC now owns 605,362 shares of the company's stock valued at $3,561,000 after purchasing an additional 97,274 shares in the last quarter. Wealthquest Corp acquired a new position in Virgin Galactic during the 1st quarter valued at approximately $1,340,000. Finally, Charles Schwab Investment Management Inc. increased its stake in Virgin Galactic by 8.5% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 240,831 shares of the company's stock valued at $730,000 after purchasing an additional 18,949 shares in the last quarter. Institutional investors own 46.62% of the company's stock.

About Virgin Galactic

Virgin Galactic Holdings, Inc, an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies.