Virgin Galactic Share Price Forecast July 2021 – Time to Buy SPCE?
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Virgin Galactic (NYSE: SPCE) is in the headlines today as the company is preparing to launch its founder, billionaire, Sir Richard Branson, into space this weekend. Shares of Virgin Galactic have been trading higher, fuelled by “buy the rumour sell the news”. If this is indeed true, Investors might want to consider trimming their positions over the weekend.
Virgin Galactic Holdings – Technical Analysis
From the financial statement we get from Virgin Galactic Holdings, we can see that the total market cap of the company is $12.683 billion, with total assets worth $748.027 million. Revenue for 2020 stood at $238.00K with a profit margin of -114720.59%. This is far lower than 2019’s revenue of $3.7 million. SPCE shares closed on July 8th at $52.69 with an uptrend of 17.30%.
When technical information is concerned, moving averages such as Volume Weighted Moving Average (20)(48.33), Hull Moving Average (9)(46.59) and Simple Moving Average (200)(29.68) are pointing towards buying. On the flip side, oscillators like Stochastic RSI Fast (3, 3, 14, 14)(18.07), Williams Percent Range (14)(−21.25), Bull Bear Power(5.64) and Neutral Ultimate Oscillator (7, 14, 28)(47.36) are all pointing towards neutral.
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Recent Developments
SPCE shares blasted off on June 25th on the back of the approval for passenger space flights that the company received. This cleared the way for Sir Richard Branson’s planned July 11th flight. However, Analysts questioned whether the run-up had been too much too fast, resulting in the shares reversing those gains. This week also had similar experiences for Virgin Galactic Holdings, with analysts questioning its valuation while expressing excitement about the upcoming flight. Branson’s upcoming flight has made a lot of analysts positive about the company launching its regular service by 2022.
Should You Buy SPCE Shares?
SPCE shares have now climbed more than 200% from their low in mid-May but still haven’t reached the highs they hit back in February. Recent company history suggests that the shares will move once on the anticipation and again on the news, with Branson’s flight playing the role of a catalyst. The shares are more than likely to react again next week after this weekend’s hype.
Virgin Galactic is a company that is moving in the right direction, with the odds in favour of the company running regular tourism flights by next year. This gives investors a reason to be excited. However, there are risks as well considering the scope of space travel. A lot of Virgin Galactic’s future potential growth is already priced into the shares, as evident from its market value of nearly $12 billion despite generating little revenue. Given the number of risks, SPCE shares should be best left as part of a well-diversified portfolio for investors.
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