Virgin Galactic Target of Unusually High Options Trading (NYSE:SPCE)

Key Points

• Virgin Galactic experienced a significant surge in options trading, with call options rising by approximately 233% compared to average volumes.
• Institutional investors have increased their stakes in Virgin Galactic, with Federated Hermes Inc. enhancing its position by 134.7% in the first quarter.
• Despite a recent earnings report beating estimates, analysts forecast continued losses for the company, projecting an EPS of -16.05 for the current year.

Virgin Galactic Holdings, Inc. (NYSE:SPCE - Get Free Report) was the target of some unusual options trading activity on Thursday. Investors acquired 61,289 call options on the stock. This is an increase of approximately 233% compared to the average volume of 18,430 call options.

Institutional Investors Weigh In On Virgin Galactic

A number of institutional investors have recently made changes to their positions in SPCE. Federated Hermes Inc. increased its stake in Virgin Galactic by 134.7% in the first quarter. Federated Hermes Inc. now owns 1,956,199 shares of the company's stock valued at $5,927,000 after acquiring an additional 1,122,535 shares during the last quarter. Wealthquest Corp purchased a new position in shares of Virgin Galactic in the first quarter worth about $1,340,000. Millennium Management LLC increased its holdings in Virgin Galactic by 62.0% during the 4th quarter. Millennium Management LLC now owns 946,956 shares of the company's stock worth $5,568,000 after acquiring an additional 362,421 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Virgin Galactic by 41.9% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,846 shares of the company's stock valued at $87,000 after buying an additional 4,381 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in shares of Virgin Galactic by 39.6% in the 4th quarter. Northern Trust Corp now owns 222,753 shares of the company's stock valued at $1,310,000 after purchasing an additional 63,141 shares in the last quarter. Institutional investors own 46.62% of the company's stock.

Virgin Galactic Stock Performance

SPCE traded up $0.18 during trading hours on Thursday, hitting $3.31. 2,393,135 shares of the stock were exchanged, compared to its average volume of 3,465,529. Virgin Galactic has a 12 month low of $2.18 and a 12 month high of $8.19. The stock has a market cap of $190.33 million, a price-to-earnings ratio of -0.37 and a beta of 2.13. The stock has a 50-day simple moving average of $3.33 and a 200-day simple moving average of $3.24. The company has a debt-to-equity ratio of 1.60, a current ratio of 3.38 and a quick ratio of 3.38.

Virgin Galactic (NYSE:SPCE - Get Free Report) last released 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 company had revenue of $0.41 million during the quarter, compared to the consensus estimate of $0.45 million. Virgin Galactic had a negative net margin of 17,828.03% and a negative return on equity of 98.94%. Analysts anticipate that Virgin Galactic will post -16.05 earnings per share for the current year.

Wall Street Analysts Forecast Growth

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

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.

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