Virgin Galactic Holdings Inc. (NYSE:SPCE) on the Path to Profitability (Jun 15th 2020)

The Virgin Galactic Holdings Inc. (SPCE) shares are trading at higher $14.99 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $25.00.

To add more color to this target, the company’s high over the last year is $42.49 and the low is $6.90. Over the last 52 weeks, SPCE is down -64.72% while the S&P 500 is up 1.20%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, SPCE reported a profit of $65000.0. Virgin Galactic Holdings Inc. also saw revenues increase to $0.24 million. In addition, SPCE has free cash flow of -$60.35 million as of 03-2020 The company’s EBITDA came in at -$58.87 million which compares well with its peers.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SPCE has a short ratio of 1.86 and outstanding shares of 202.41M.

Company Outlook

SPCE has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 19.19 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.38. Virgin Galactic Holdings Inc. SPCE also noted assets of $548.06 million at the end of the last quarter. Investors should also keep an eye on sector updates as SPCE has historically followed its peers on positive news.

All told, Virgin Galactic Holdings Inc. SPCE has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SPCE represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Virgin Galactic Holdings Inc. SPCE is now commanding a market cap of 3.04B and a float of 107.20M. SPCE is increasing its credibility in this sector and that could lead to more upside down the line.