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

Key Points

• Virgin Galactic (NYSE:SPCE) experienced a significant uptick in call options trading, with investors acquiring 27,671 call options, marking a 41% increase from the average daily volume.
• Despite a reported loss of ($1.47) earnings per share for the last quarter, the company exceeded analysts' expectations, who had predicted a loss of ($2.12).
• Institutional investors own 46.62% of Virgin Galactic's stock, with notable increases in positions from several hedge funds during the first quarter of the year.

Virgin Galactic Holdings, Inc. (NYSE:SPCE - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock investors acquired 27,671 call options on the company. This is an increase of 41% compared to the average daily volume of 19,586 call options.

Virgin Galactic Price Performance

Shares of NYSE:SPCE traded up $0.21 during midday trading on Friday, reaching $4.18. 2,360,598 shares of the company's stock were exchanged, compared to its average volume of 3,731,975. The firm has a market capitalization of $240.44 million, a PE ratio of -0.46 and a beta of 2.27. The company has a debt-to-equity ratio of 1.60, a quick ratio of 3.38 and a current ratio of 3.38. The company's 50 day simple moving average is $3.55 and its two-hundred day simple moving average is $3.32. 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 announced its earnings results on Wednesday, August 6th. The company reported ($1.47) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($2.12) by $0.65. The business had revenue of $0.41 million during the quarter, compared to analysts' expectations of $0.45 million. Virgin Galactic had a negative net margin of 17,828.03% and a negative return on equity of 98.94%. Equities research analysts expect that Virgin Galactic will post -16.05 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Virgin Galactic

A number of hedge funds have recently made changes to their positions in SPCE. Federated Hermes Inc. increased its position 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 purchasing an additional 1,122,535 shares in the last quarter. Wealthquest Corp acquired a new stake in Virgin Galactic in the 1st quarter valued at about $1,340,000. Caption Management LLC increased its position in Virgin Galactic by 112.1% in the 1st quarter. Caption Management LLC now owns 11,555 shares of the company's stock valued at $35,000 after acquiring an additional 107,315 shares in the last quarter. Invesco Ltd. increased its position in Virgin Galactic by 510.9% in the 1st quarter. Invesco Ltd. now owns 107,641 shares of the company's stock valued at $326,000 after acquiring an additional 90,021 shares in the last quarter. Finally, AXQ Capital LP acquired a new stake in Virgin Galactic in the 2nd quarter valued at about $216,000. Institutional investors and hedge funds own 46.62% of the company's stock.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Wall Street Zen raised shares of Virgin Galactic from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. The Goldman Sachs Group initiated coverage on shares of Virgin Galactic in a report on Monday, June 30th. They issued a "neutral" rating and a $3.00 price target for the company. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Virgin Galactic in a report on Wednesday, October 8th. Finally, Susquehanna reaffirmed a "neutral" rating and set a $4.00 price objective (up from $3.25) on shares of Virgin Galactic in a report on Thursday, October 9th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $5.00.

Virgin Galactic Company Profile

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.

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