SPCE - Virgin Galactic Holdings, Inc.
17.20 -0.32 (-1.83%)
After hours: 7:52PM EDT
Chart Events
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 17.04 |
| Open | 18.36 |
| Bid | 17.10 x 800 |
| Ask | 17.37 x 2900 |
| Day's Range | 17.26 - 18.70 |
| 52 Week Range | 6.90 - 42.49 |
| Volume | 22,374,094 |
| Avg. Volume | 13,967,525 |
| Market Cap | 3.686B |
| Beta (5Y Monthly) | N/A |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | N/A |
| Earnings Date | May 05, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 29.67 |
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How to Ride a Multi-Bagger Opportunity in Virgin Galactic Stock
The industry is shooting for the stars. But when it comes to investing in Virgin Galactic (NYSE:SPCE) and SPCE stock, it's enough to stay tethered to the price chart as well as a smart risk-adjusted position in a sometimes hostile investing environment. Let me explain.Source: Tun Pichitanon / Shutterstock.com Space, it's the final frontier. And this week we got a bit closer to exploring those boundaries face-to-face than we've been in a long time. Tesla's (NASDAQ:TSLA) Elon Musk was expected to send two astronauts into orbit via his privately held SpaceX venture on Wednesday. It would have marked the first manned mission into space in more than nine years. However, Mother Nature scuttled the launch.For many stargazers watching from the sidelines should be rewarded Saturday when a second attempt is planned. But for those that want to participate on a whole other level and where "mission accomplished" can spell big-time profits, it's time to consider buying SPCE stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSPCE stock is the publicly-traded version of Sir Richard Branson's Virgin Galactic. The venture's angle on the race to space is commercial tourism. And amid the skepticism and worries, there's stronger reasons to see shares as positioned for huge future success.To be clear, right this second, it isn't a risk asset that's going to be universally appealing. The company's lack of profitability among other metrics investors find useful, is certain to keep many looking the other way. Nevertheless, Virgin Galactic is positioned as the kind of investment that could eventually yield a multi-bagger return. But don't just take my word for it. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure InvestorPlace's Louis Navellier -- a guy who knows a thing or two about finding massive ground floor investment opportunities -- is on board with SPCE stock. A March recommendation has proven "early," but with his bullish thesis largely intact, today's investors are reasonably at an even stronger advantage. And Louis isn't the only pro bullish on Virgin Galactic.More recently, Matt McCall asked investors to look past the company's recent mixed earnings report and embrace shares as an "excellent spec play."Matt and his research team are upbeat on the stock's prospects after factoring in fine print within the quarterly press release. Those devilish details announced Virgin's Space Act Agreement with NASA to develop high-speed travel technologies that will be used right here on planet Earth. And that could be a very profitable win for the company regardless of what happens in the final frontier.Okay, but how about Richard Branson's sale of 2.6 million shares earlier this month? Top insider selling could be cause for investors to hit pause, instead of the buy button. That would be a mistake though. The sale, which netted in the neighborhood of $500 million and reduced the founder's stake by about 22%, is being used as a lifeline to support his other global and consumer driven businesses hurt by the novel coronavirus. All told, the headline fails to tell the whole story. SPCE Stock Weekly Chart Source: Charts by TradingViewSimilar to most growth stocks in their earliest phase of being introduced to investors, SPCE stock has seen euphoric highs backed by unsustainable optimism followed by "end of times" like bearish behavior. From Amazon (NASDAQ:AMZN) to Netflix (NASDAQ:NFLX) or Nvidia (NASDAQ:NVDA), it has happened to the very best of them.To be fair, the next part of those storied journeys, which delivered massive future returns, is the more difficult task to replicate. But SPCE stock is in position technically right now to begin its own launch higher.Shares are currently in the early stages of a building uptrend after this year's ride into the high heavens and crash back down to earth. What makes a purchase today more interesting is that the stock has pulled back fairly hard the past couple weeks from its own ubiquitous novel coronavirus bottom to form a new, but possibly questioned pivot low.The chart above details how last week's pivot undercut a low in April. It's certain to have raised a flag or two for some investors. More importantly, shares have now confirmed a new modestly lower low without failing the initial pattern on a closing basis. Along with a bullish stochastics crossover inside oversold levels, I'm optimistic of Virgin Galactic's chances for a sustainable rally from here.Today's forecast is calling for a price target that breaks above the 38% retracement level, which acted as resistance earlier this month. Specifically, I'm looking for shares to reclaim the 50% to possibly 62% levels in the second half of 2020.But don't expect an easy ride, even if the outlook proves correct. A rally is also very likely to remain bumpy, counterproductive at times and able to knock the best stop losses out of contention. With that in mind, one favored way to position for your own potential multi-bagger with vastly reduced and limited risk is the Oct $23 / $30 bull call spread for about $1.15. This also requires much less from SPCE stock.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post How to Ride a Multi-Bagger Opportunity in Virgin Galactic Stock appeared first on InvestorPlace.
- InvestorPlace
Why Virgin Galactic Is Still Dreaming of Space Travel
Although they're two separate entities, Virgin Galactic (NYSE:SPCE) and Virgin Orbit will forever be linked to their shared brand name. As well, both organizations have businesses that overlap each other. Usually, these types of similarities, especially those associated with billionaire Richard Branson, have positive implications. This time around though, SPCE stock may end up getting the short end of the stick. Click to EnlargeSource: Tun Pichitanon / Shutterstock.com With space travel being the shared DNA in the two companies, a success in one augurs well for the other. However, the opposite is also true. A few days ago, Virgin Orbit attempted to demonstrate a new rocket system which is designed to send small payloads to orbit, according to the New York Times. However, on its initial launch attempt, management stated that an undisclosed problem forced the project to abort abruptly.Where this is crucial for SPCE stock is that although Virgin Galactic is focused on space exploration with human passengers, it utilizes the same launching concept as Orbit. Both platforms are carried into the air by a larger plane and dropped, with the platforms' separate rocket system carrying them into the next leg of their journey.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEssentially, we have two major concerns. First, Virgin Orbit's launch failure doesn't exactly provide much confidence for human space travel under a similar system. While it may not impact SPCE stock immediately, in the long run, passenger fears over safety may erode demand. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure Another point is that this process of mid-air launches may not resonate. It's been done before but to no mainstream adoption. And with this latest failure, the situation doesn't look great for either Virgin Orbit or Galactic. SPCE Stock Suffers from Unfortunate TimingGranted, this is a long, experimental road. I'm sure that Branson himself realizes that by the time his space companies that he helped found actualize the "good stuff," he will no longer be with us. So, if you're a young investor and have nothing but time, Virgin Galactic might make sense.However, I can't help but notice that SPCE stock is a victim of poor timing. Based on technical trends, it's quite possible that were it not for the novel coronavirus bringing a hard stop to the global economy, Virgin Galactic could be one of the best performers of 2020. Between the beginning of January through Feb. 19, shares more than tripled in market value.Of course, SPCE would soon come crashing down as the U.S. and developed nations crumbled under the weight of the pandemic. But as coronavirus cases have started to decline, individual states and countries have started the slow process of reopening. Theoretically, we should see risk-on sentiment return, even for speculative companies like Virgin Galactic.Call me pessimistic but I'm not entirely convinced. Back in September of last year, a UBS survey covering sentiment of ultra-wealthy households - we're talking average family wealth of $1.2 billion - revealed that a majority anticipated a recession by 2020.Most notably, the extremely affluent didn't just believe a downturn was on the way; they acted on their instincts. This entailed adjusting their portfolio, particularly shifting emphasis toward bonds and real estate. Moreover, a significant number bumped up their cash reserves.I mention these things to highlight that, contrary to popular wisdom, recessions do impact the wealthy, probably more so than the Regular Joe. That's why they took action to protect their capital. Logically, I don't think they're in the mood for quarter-of-a-million-dollar space tickets. A Poor Precedent Awaits Virgin GalacticFinally, a major deterrent against SPCE stock is that niche travel services don't work out well. In a March 2020 article about Virgin Galactic, I had this to say:…we've seen this story before. For several years, Air France-KLM (OTCMKTS:AFLYY) and British Airways operated the Concorde, a supersonic commercial jet.From a scientific perspective, the Concorde was an impressive achievement in flight. As well, casual bystanders appreciated its sleek, aerodynamic design elements. But from a business angle? As The Sun reported, low passenger numbers and rising maintenance costs killed the program.Here's something else to chew on - the Concorde worked. Up until its notorious crash in Paris on July 25, 2000, the supersonic jet had a perfect safety record.Virgin Orbit's recent failure suggests that not everything with the launching process is in tiptop shape. And if something goes wrong with a human space flight, the impact to SPCE stock could be disastrous. Given the many variables involved, I'm going to keep my portfolio terrestrial for the time being.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Why Virgin Galactic Is Still Dreaming of Space Travel appeared first on InvestorPlace.
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SPCE Stock May Not Fail to Launch, But It May Still Fail
Virgin Galactic (NYSE:SPCE) is a good news, bad news story. And it's important to note that the company is reporting some good news. But right now, there's some bad news too. And all of that is serving as an anchor on SPCE stock.Source: Tun Pichitanon / Shutterstock.com First the good news. Virgin Orbit, a branch of Virgin Galactic is scheduled to perform its first "orbital rocket launch" the weekend of May 23. This will be the final test of its Boeing (NYSE:BA) 747 aircraft-based system. Virgin Orbit's parent company, Virgin Galactic, intends to send paying tourists on rides at the edge of space. By contrast, Virgin Orbit is using a retired commercial jet to launch rockets which will then launch satellites into orbit.Better still, the company says it has more than a dozen launches lined up after the testing is complete. And most of those launches are from private companies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, there's also bad news. In early May, Sir Richard Branson sold 2.6 million Virgin Galactic shares through Vieco 10, an investment company owned by Branson's Virgin Group. However, the announcement came just a few days after Virgin Galactic announced they would be selling up to 25 million shares of Virgin Galactic common stock to help shore up ventures that have been slammed by the novel coronavirus. * 7 Excellent Penny Stocks Ready to Roar Now to be clear, the sale, which is approximately $41 million, only amounts to approximately 2% of the company. And Branson's firm still owns over 112 million shares. But by the looks of SPCE stock dropping over 8% on the announcement of the sales, investors are not impressed. Virgin Galactic Is Not Making a ProfitIn February, Virgin Galactic reported a larger-than-expected EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $55 million. Analysts surveyed by FactSet were projecting a loss of $46.9 million. That took the company's net loss for 2019 to $210.9 million.At the time, Virgin Galactic said it was expecting to be profitable by 2021. However, that was before the Covid-19 pandemic changed the entire landscape of the global economy. In its most recent earnings report on May 5, the company once again missed on both earnings and revenue. This time the company reported an EBITDA loss of $53 million. One Small Step Won't Be Large EnoughBack in February, Virgin Galactic launched an initiative called "one small step." Virgin Galactic received $1,000 refundable deposits from 400 customers who wanted to be the first tourists in space. If all of these customers pay the full cost of their ticket (reported to be $250,000), Virgin Galactic could make $100 million in revenue.But the key word in that statement is "refundable." These are not actual sales at the moment. And right now, with the economy teetering into recession, the company realizing all $100 million of those dollars seems like more of a science fiction movie than reality. Presently, Branson is making it clear that his first priority is to keep his travel businesses. That's probably the right thing for Branson's business. But it's not a reason to buy SPCE stock. SPCE Stock Continues to Have Many HurdlesYou're familiar with the saying "rob from Peter to pay Paul." But it would help if Peter was making a profit. Virgin Galactic is an enticing proposition. The promise of space travel, even if it's not quite Star Wars has a lot of appeal.I'm sure there would be an audience of well-heeled customers who have the money to spend on a once-in-a-lifetime adventure. And Virgin Orbit may have an audience for its "air launch" system. The bottom line is the company may make revenue.But space travel in itself is a hurdle. When I wrote about the company in March, I was concerned that the company had come into existence based on a reverse merger, but most of the institutional investors had long pulled out.As I see it, Virgin Galactic needs everything to go right. And that's going to be made harder when the owner needs to siphon $41 billion to help shore up other businesses.My feelings about Virgin Galactic have not changed. Show me revenue and customers before I consider SPCE stock a good investment.Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post SPCE Stock May Not Fail to Launch, But It May Still Fail appeared first on InvestorPlace.
- InvestorPlace
Virgin Galactic Is a Solid Speculative Stock to Buy
Virgin Galactic (NYSE:SPCE) is one of the trickiest stocks out there right now. On the one hand, it has virtually no revenue; that makes SPCE stock difficult from an investment perspective. However, from a speculation standpoint, the entity has promise.Source: Christopher Penler / Shutterstock.com Earlier this month, the company reported its first-quarter results. Virgin Galactic reported a loss of 30 cents per share, missing estimates by 12 cents. Revenue came in at just $240,000. That missed estimates and sank significantly year-over-year.But oddly, this isn't a growth story. At least not yet. Let's dig deeper as to why this may be a worthwhile speculation play for investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Digging Deeper on Virgin Galactic StockWhen you think of a company with virtually no revenue and all hope, the stock is generally unattractive to most investors. But SPCE stock has a surprisingly strong balance sheet.Current assets stand tall at $536.6 million versus current liabilities of just $115.8 million. With assets almost five times larger, Virgin Galactic can easily cover its short-term obligations. Total assets of $605.5 million easily top total liabilities of $138 million too.So, while a $3.3 billion valuation seems lofty for Galactic, at least we're looking at a company with solid footing.That said, the cash burn will eventually put SPCE stock in a tough spot unless management can curb spending or generate more revenue. Currently, revenue comes from engineering services, while investors are betting on future space flights for customers.Refundable reservations climbed to more than 400 reservations. That amounts to more than $100 million in potential revenue, according to the company. Interest for flight registrations climbed by roughly 1,200, a 15% increase from the prior period.However, it's SPCE's announced partnership with NASA that got investors excited.The company is working with NASA on several health care initiatives, including solutions to help with the novel coronavirus. But this goes much deeper than that. During the conference call, management explained the partnership:"In partnering with NASA, we will help to advance the USs efforts to produce technically feasible high Mach vehicles for potential civil applications…We are also the only team designing, building and flying a crude vehicle at over Mach 3 at the edge of hypersonic flight, providing first mover advantage."This is actually pretty big news and, in my opinion, where the potential really is for SPCE stock to take off. Trading SPCE Stock Click to EnlargeSPCE stock is not a well-established company like Microsoft (NASDAQ:MSFT) or Amazon (NASDAQ:AMZN). In fact, this is very much a spec play. However, I would call it a strong candidate for speculation, not simply a high-risk bet.The worst case for Virgin Galactic stock is zero. The best case is a move back through its prior highs, putting a potential 200%-plus move in play. With that in mind, let's take a closer look at the charts.Once SPCE stock broke out over $12 in early January, it quickly raced higher. Shares topped $40 in February, then fell precipitously amid the outbreak of Covid-19. For interested buyers, they may consider waiting for slightly better prices. That is, on a dip down toward the 200-day moving average or the former $12 breakout area.Below $12 and bulls can justify cutting the position, helping to improve the risk/reward. Long above $12 (or a move back over $12 should this level break) keeps SPCE stock in play.However, until Virgin Galactic clears $20, this one may struggle to maintain upside momentum. Over the May high at $21.53 and $28 is the next upside target.Remember, SPCE stock has a high short interest near 41%. That's a lot of sellers betting on a decline. While one could argue that there's a high short interest for a reason -- and there is, truthfully -- it could also cause a painful short-squeeze if a strong rally gets going. That will force shorts to cover, adding more buyers to the mix. It's similar to what we saw earlier this year.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Kenwell held no position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Virgin Galactic Is a Solid Speculative Stock to Buy appeared first on InvestorPlace.
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5 Stocks to Buy With Heavy Insider Buying in May
[Editor's Note: "5 Stocks to Buy With Heavy Insider Buying" is regularly updated to include the most relevant information available.]Over the past several weeks, I have consistently pointed to record-high levels of insider buying as a bullish indicator that it's time for you to start looking for stocks to buy.Why? Two big reasons. Insiders are good at picking bottoms, and they are equally as good at picking winning stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the first point, just look at this chart from Bloomberg. Insiders are often early in calling stock market bottoms. But they are seldom wrong. Insiders bought big before the markets turned around in the early 2000s, and before markets bottomed in 2009.On the second point, stocks with heavy insider buying tend to outperform. In an email to InvestorPlace, Andrei Simonov, the chairperson of the Department of Finance at Michigan State University, said, "Insider buying is always a positive signal. Numerous academic papers showed that it is indeed a good signal."One of those academic papers, authored by Nejat Seyhun, a University of Michigan finance professor, showed that stocks with significant insider buying tend to outperform by 5%.With that in mind, let's answer a very important question. What stocks which insiders bought big in May should you be buying right now? * 20 Stocks to Buy If You're Still Betting on America to Thrive Consider these five stocks to buy now, all of which had big insider buying in May: * TransDigm (NYSE:TDG) * Harley-Davidson (NYSE:HOG) * CVS (NYSE:CVS) * Virgin Galactic (NASDAQ:SPCE) * Rent-A-Center (NASDAQ:RCII) Stocks to Buy: TransDigm (TDG)Source: Pavel Kapysh / Shutterstock.com [Note: all insider data is sourced from Finviz.com]As a designer, producer, and supplier of aircraft components, TransDigm has been hit hard amid the novel coronavirus pandemic.Flying demand has screeched to a halt. Against the backdrop of zero demand, airlines aren't ordering new commercial aircraft. TransDigm's commercial aircraft business has been slammed. This pain won't stop anytime soon. TransDigm management is calling for commercial aftermarket sales to drop by 70% to 80% for the rest of the year.But this is a near-term hiccup in what is an otherwise strong growth narrative.Over the next few years, coronavirus fears will fade and economic activity will normalize. Consumers will start flying again. Aircraft component demand will rise again. And TransDigm will get back to growing.All of that is to say that today's dirt-cheap valuation on TDG stock -- 3 times sales versus a five-year-average sales multiple of over 5 -- won't stick around.That's why I'd follow the insiders on this one. Board Director and Managing Director at Berkshire Partners, Robert Small, has bought $125 million worth in May. Fellow Board Director and former CFO of Sherwin-Williams (NYSE:SHW) Sean Hennessy bought $700,00 worth of TDG stock in May.In the long run, those big buys will yield big profits. Harley-Davidson (HOG)Source: Alex Erofeenkov / Shutterstock.com U.S. auto sales have fallen off a cliff as consumers under widespread stay-at-home orders have halted their discretionary spending. This plunge in U.S. auto market demand has caused significant pain for Harley-Davidson.Global retail motorcycle sales at Harley-Davidson dropped more than 20% year-over-year in the first quarter of 2020. HOG stock has dropped nearly 50% year-to-date.The CEO of Harley-Davidson thinks this pain is temporary. On May 8, he bought $2.1 million worth of HOG stock.I think he's right.Over the next few months, the U.S. economy will gradually reopen. As it does, consumer behavior will start to normalize, and discretionary spending will rebound. U.S. auto sales demand will slowly recover. Harley-Davidson's growth trends will improve. HOG stock will bounce back. * 7 Earnings Reports to Watch Next Week In other words, it appears the worst is over for Harley-Davidson. Going forward, things should only get better for both the company and the stock. CVS (CVS)Source: Jonathan Weiss / Shutterstock.com As a brick-and-mortar focused retailer, CVS has exposure to stay-at-home headwinds because consumers simply aren't going out and spending as much money at physical locations as they used to.For that reason, CVS stock has shed 16% this year.But the company just reported strong first-quarter numbers which handily topped expectations and included healthy revenue and operating profit growth. Perhaps more importantly, management reiterated its full-year profit guide on the basis that Covid-19 isn't creating huge financial disruption for the company.Does that mean it's time to buy the dip in CVS stock?I think so. So do insiders. Alan Lotvin, the president of CVS Caremark, bought $315,000 worth of CVS stock in mid-May.Over the next few months, economic activity will gradually normalize and CVS' already resilient growth trajectory will only improve. As it does, CVS stock will rebound back to where it was at the beginning of the year, if not higher. Virgin Galactic (SPCE)Source: Tun Pichitanon / Shutterstock.com Once one of the hottest and most hyped-up stocks in the market, commercial spaceflight company Virgin Galactic has seen the air come of out its wheels over the past few months.Specifically, the coronavirus pandemic has presumably (yet again) delayed the launch of Virgin Galactic's first commercial space flight, which was previously supposed to happen in 2020. Because a lot of the hype surrounding the company was based on its ability to finally commence commercial operations in 2020, this delay has weighed significantly on SPCE stock, which has fallen from $43 to $15 in matter of months.Insiders are buying the dip.Since May 11, four insiders -- including the CEO and COO -- have collectively bought $240,000 worth of SPCE stock.In the long run, those buys will yield big rewards.Virgin Galactic is a pioneer in the commercial space market, which is expected to grow from $350 billion today, to $1.1 trillion by 2040. Over that stretch, Virgin Galactic will turn into a really big company, powered by a niche but high-demand commercial spaceflight business and the development of hypersonic air travel technology (which could be used to replace planes at scale). * 9 Stocks to Buy as People Are Still Stuck at Home In other words, as the space economy booms over the next two decades, SPCE stock will roar higher. Against that long-term backdrop, today's coronavirus-related weakness is nothing more than a buying opportunity. Rent-A-Center (RCII)Source: dennizn / Shutterstock.com Last, but not least, on this list of stocks to buy with heavy insider buying is Rent-A-Center.As a rental equipment retailer, Rent-A-Center was initially seen on Wall Street as a big loser amid the coronavirus pandemic because of physical store closures. RCII stock dropped from $31 in late January, to $12 by March.Then, Wall Street started to think that a discount-focused, rental-oriented equipment retailer like Rent-A-Center may actually win during Covid-19, because tight budgets will push consumers away from buying big-ticket items and towards renting them.Rent-A-Center's first quarter numbers confirmed that this is the case. The company reported positive revenue and comparable sales growth in the quarter, and commented that April sales trends have been quite strong, led by out-sized gains in the e-commerce business.Over the next few months, the economy will gradually re-open (providing support for more consumer discretionary spend). But consumers will be cautious with their spend because of the huge job loss the economy has suffered (thereby providing support for more consumer discretionary spend on discount, rental items).As such, Rent-A-Center's growth trends should only get better as we head into the back-half of 2020. As they do, RCII stock will keep rallying.Insiders apparently agree. In May, two Board Directors purchased nearly $800,000 worth of RCII stock.I say follow those insiders, and stick with this rally for the foreseeable future.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 5 Stocks to Buy With Heavy Insider Buying in May appeared first on InvestorPlace.
- InvestorPlace
Virgin Galactic Is Grounded with No Profit and Little Revenue
Many investors regard Virgin Galactic (NYSE:SPCE) as the first publicly traded space tourism company. So far this year SPCE stock is up about 37%, but that number tells only half the story of the spaceflight company's shares.Source: Christopher Penler / Shutterstock.com SPCE is part of Sir Richard Branson's Virgin Group. He had previously founded Virgin Atlantic Airways which itself is owned in part by Delta Air Lines (NYSE:DAL). Branson's Virgin Galactic went public via a reverse merger in October 2019 at an opening price of $12.34. On Feb. 20, SPCE skyrocketed to an all-time high of $42.49.Since then it has been volatile with a downward bias like so many other stocks. It now sits below $16, a decline of about 57% from its February peak.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBroader indices have been buoyed in recent weeks by potential positive news regarding the gradual lifting of the novel coronavirus lockdown as well as the hopes for the development of an effective vaccine. However, as states and businesses are looking to return to some form of normality, questions are also emerging as to whether there may be a second wave of Covid-19 infections. * 7 Stocks to Buy That Have Nothing But Upside In Their FutureTherefore, there may be some short-term profit-taking in SPCE stock. Yet investors with a long-term horizon whose portfolios can also weather further volatility may consider buying into the shares of this exciting venture. SPCE Is a Space StartupAccording to recent research by of Scott Winter and Justin Trombley of Embry-Riddle Aeronautical University, "Technological advancements in space travel have brought the concept of private, commercial space transportation closer to reality. Companies such as Blue Origin and Virgin Galactic are working to offer commercial, low orbit space flights to paying customers, and SpaceX is even considering private trips to Mars."Virgin Galactic defines itself as "the world's first commercial spaceline and vertically integrated aerospace company."On a side note, InvestorPlace readers may also be interested to know that Blue Origin is fully funded by Jeff Bezos, CEO of Amazon (NASDAQ:AMZN). Similarly SpaceX is the brainchild of Elon Musk, CEO of Tesla (NASDAQ: TSLA). Each of these three businesses have different structures and financing approaches to commercial space flight.Going forward, SPCE management plans to run "a regular schedule of spaceflights for private individuals and researchers" from its operational hub and "spaceport" in New Mexico.Within this new decade, space tourism could become a market of $3 billion. And by default, the prospects for SPCE stock could be risky, yet exciting and rewarding.However, Virgin Group is about to sell 12% of its stake in Virgin Galactic. The aim is to free up capital to financially support the group's other travel and tourism related businesses, especially Virgin Atlantic Airways, which has been adversely affected by the viral outbreak.This sale is likely to put pressure on SPCE stock price. In the coming months, Branson may have to sell even more shares to save Virgin Atlantic Airways. SPCE Doesn't Turn a Profit YetOn May 5, SPCE released its financial results for the first quarter. It was the second quarterly report as a public company.The company reported revenues of $238,000, generated by providing engineering services, and net loss of $60 million. It reported having cash and cash equivalents of $419 million as of March 31.In comparison, in the fourth quarter of 2019, SPCE reported revenues of $529,000 and a net loss of $73 million. So in Q1, Virgin Galactic managed to narrow the losses by $13 million.The company's reusable suborbital vehicles are designed to reach "space altitudes on frequent, affordable, and safe suborbital voyages." Each ship will have two pilots. Virgin Galactic plans to carry up to six passengers in its spacecraft at a time, charging $250,000 per person. As of April 29, more than 9,100 signed up to express interest.Before the Covid-19 pandemic, Virgin Galactic was aiming for completing the world's first commercial spacecraft into suborbital space in 2020. Now, that timetable does not look so clear, it said."The full impact of the COVID-19 pandemic on the Company's full year financial results and test flight program will depend on future developments, such as the ultimate duration and scope of the outbreak, the timing and impact of future stay-at-home orders and other government mandates, and the pace at which the Company can resume normal course operations."Thus, it'd be highly difficult to assume that passengers would be able to attend a pre-flight training or travel to space for fun in the coming months. Investor Takeaway on SPCE StockIn the past decade, space tourism became a topic of media interest, in part due to the technological developments in the aerospace sector and in part due to reduced costs of access to space. And with the 2019 IPO of Virgin Galactic, now it is part of investor interest.However, as a result of the global pandemic, many businesses and states have had to shut down or decrease operations to a bare minimum. It will be a while before anyone is going anywhere, including space, for pleasure. Virgin Galactic's space tourism timetable looks questionable at this point.It's be likely that we can expect a delay of at least several months or even a year for the first flight into space. I do not expect SPCE stock to go back to the February highs any time soon.However, if you're ready to buy into the "space story" and are happy to wait several years, then SPCE stock may be appropriate for your portfolio and you may consider buying the dips. I'd be consider investing as the price goes toward $12.50.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, she did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Virgin Galactic Is Grounded with No Profit and Little Revenue appeared first on InvestorPlace.
- Simply Wall St.
Need To Know: Virgin Galactic Holdings, Inc. (NYSE:SPCE) Insiders Have Been Buying Shares
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...
- Skift
Richard Branson to Sell Up to 12 Percent Stake in Virgin Galactic
Sir Richard Branson is to sell $500 million (£405 million) in Virgin Galactic shares in order to prop up his airline and leisure interests, which have been ravaged by the coronavirus crisis. In a statement to the New York Stock Exchange, Branson’s Virgin Group said it intended to sell 25 million shares via a series […]
- MarketWatch
Virgin Group may sell up to 25 million of its Virgin Galactic shares to bolster travel business hit by COVID-19
Virgin Group's subsidiary Vieco 10 Ltd. said Monday it may sell up to 25 million of its shares of Virgin Galactic Holdings Inc. in an at-the-market offering. The company will use the proceeds to support its global leisure, holiday and travel businesses, that have been upended by the coronavirus pandemic and consumers comply with stay-at-home orders and other restrictions on movement. Virgin Galactic shares were down 6% premarket, but have gained 75% in the year to date, while the S&P 500 has fallen 11%.
- PR Newswire
Proposed at the Market Offering of Shares of Virgin Galactic Holdings by Vieco 10 Limited
Virgin Group ("Virgin"), through its subsidiary Vieco 10 Limited, announced today that it may offer and sell up to 25,000,000 shares of its common stock in Virgin Galactic Holdings, Inc. ("VGH") (NYSE: SPCE) to or through Credit Suisse Securities (USA) LLC as sales agent or principal. VGH filed an amendment to its registration statement on Form S-1 with the Securities and Exchange Commission (the "SEC") to register the proposed offering by Vieco 10 Limited. Sales of the shares of common stock are expected to be made from time to time by means of ordinary brokers' transactions on the NYSE or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. Virgin intends to use any proceeds to support its portfolio of global leisure, holiday and travel businesses that have been affected by the unprecedented impact of COVID-19.
- IPO-Edge.com
The IPO Market Has Barely Slowed Down – This Product Explains Why
Above: A Hydrogen Powered Truck from Nikola Corporation, Which Is Merging with VectoIQ Acquisition Corp. By John Jannarone Since the coronavirus crisis drove the market to multiyear lows, the flow of initial public offerings has ground to a veritable halt. That is, except, for special purpose acquisition companies, or SPACs. Some $2.7 billion has been […]
- InvestorPlace
5 Top Stock Trades for Thursday: PYPL, GLD, PTON, SPCE, BYND
It's a busy earnings seasons for high-growth stocks and that continues after the close. That said, let's look at a few top stock trades as a result. Top Stock Trades for Tomorrow No. 1: PayPal (PYPL) Click to Enlarge Source: Chart courtesy of StockCharts.comPayPal (NASDAQ:PYPL) earnings are due up after the close, and man, this one has been strong. Shares have climbed 58% from the March lows and hit new 52-week highs on Wednesday. That's going to set expectations quite high for the print. In any regard, let's watch this one for a pullback. If shares dip -- especially on great numbers -- I'd love to see the $120 to $124 area hold as support. This was a recent consolidation zone, and also a breakout level over a long-term double top.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Online Retail Stocks Profiting From Social Distancing A further decline could send shares back to uptrend support, currently near $115 (blue line). Below that, and its cluster of moving averages between $106 and $110 should buoy PayPal. Top Stock Trades for Tomorrow No. 2: Gold ETF (GLD) Click to Enlarge Source: Chart courtesy of StockCharts.comWhat a difference a day can make. Just yesterday I considered taking a look at the SPDR Gold Trust (NYSEARCA:GLD), but wanted to wait one more day. At the time, shares were rotating over the prior day's high, closing near the highs and clearing the 10- and 20-day moving averages. Bulls looked like they were finally regaining some momentum. With Wednesday's gap-down though, that constructive price action is being demolished. On the bright side, the $158-ish area held as support. But until it reclaims the 10-day and 20-day moving averages, it's hard to trust GLD on the long side. Especially as it makes a series of lower highs (purple arrows). Now it's simple. Bulls need to reclaim Tuesday's high at $161.10, while bears need to crack the two-week low near $157. Below puts the 50-day moving average in play. Top Stock Trades for Tomorrow No. 3: Peloton (PTON) Click to Enlarge Source: Chart courtesy of StockCharts.comLike PayPal, Peloton (NASDAQ:PTON) has been on fire ahead of earnings. Shares ended the day on Wednesday up 5% on the day with earnings due up after the close. This one has been much more volatile, falling more than 50% from the December highs before doubling off the March low. A bullish reaction could send shares spiking into the $40s. However, a bearish reaction could trigger a pullback. On a dip, I want to see if the $35 to $36 breakout area acts as support. * 3 High-Risk/High-Reward Stocks To Buy for Intrepid Investors On a move below this area, a dip into the low- to mid-$30s could be in play. There it will find uptrend support (blue line) near $32.50 and the 61.8% retracement near $31. Top Trades for Tomorrow No. 4: Virgin Galactic (SPCE) Click to Enlarge Source: Chart courtesy of StockCharts.comVirgin Galactic (NYSE:SPCE) stock continues to digest nicely. While it's no longer above uptrend support (blue line), it continues to make a series of higher lows. Now back over the 50-day moving average, let's see if SPCE can breakout over the $20 mark. Above the April high at $21.07, and Virgin Galactic can really take flight. Could it return all the way up to $28? With enough momentum it certainly could, considering this stock topped $40 earlier this year. On the downside, watch for a break of the May low at $15.55. Below puts the 200-day moving average in play. Top Trades for Tomorrow No. 5: Beyond Meat (BYND) Click to Enlarge Source: Chart courtesy of StockCharts.comBeyond Meat (NASDAQ:BYND) is ripping on earnings, ending Wednesday up 26%.With the move, BYND shares are clearing the declining 200-day moving average, which was resistance last month. Further, it's clearing the April high at $116.64 and the 78.6% retracement for the 2020 trading range at $16.60.So what now? Look for Beyond Meat to climb to $130 resistance. Shares failed to push through this zone earlier in the year. If it can rally this far, let's see how it acts once more. As crazy as it seems, $155 to $160 could be on the table if Beyond Meat can break out over $130 and gain momentum.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 5 Top Stock Trades for Thursday: PYPL, GLD, PTON, SPCE, BYND appeared first on InvestorPlace.
- Barrons.com
Virgin Galactic Stock Jumps After Earnings. Space Tourism Appears to Be Hot.
Virgin Galactic’s successful launch of its “one small step” initiative is a reason the stock is higher, after the company reported first-quarter earnings.
- MarketWatch
Virgin Galactic stock gains after Q1, new NASA deal
Virgin Galactic Holdings Inc. shares rose more than 3% in the extended session Tuesday after the rocket company reported a wider-than-expected quarterly loss and sales missed Wall Street expectations, but investors cheered a new agreement with the National Aeronautics and Space Administration. Virgin said it lost $60 million, or 30 cents a share, in the first quarter, compared with a loss of $42.5 million, or 22 cents a share, in the first quarter of 2019. Revenue fell to $238,000 from $1.78 million a year ago. Analysts polled by FactSet had expected Virgin to report a loss of 15 cents a share on sales of $700,000. Virgin said it had a "strong" cash position, with cash and cash equivalents of $419 million as of March 31. Virgin said the "full impact" of the coronavirus pandemic "will depend on future developments, such as the ultimate duration and scope of the outbreak, the timing and impact of future stay-at-home orders and other government mandates, and the pace at which the company can resume normal course operations." Virgin Galactic said it will provide updates "as appropriate" but offered no outlook on Tuesday. In a separate press release, Virgin said it and a subsidiary had entered an agreement with NASA to develop technologies for high speeds with an eye for civilian applications. Shares of Virgin Galactic ended the regular trading day down 0.4%.
- Business Wire
Virgin Galactic Announces First Quarter 2020 Financial Results
Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or "the Company"), a vertically integrated aerospace company, today announced its financial results for the first quarter ended March 31, 2020.
- Business Wire
Virgin Galactic Enters Space Act Agreement with NASA to Advance High Mach Technologies
Virgin Galactic Holdings, Inc. (NYSE:SPCE) ("Virgin Galactic" or "the Company") and its wholly owned subsidiary, The Spaceship Company ("TSC"), announced today the signing of a Space Act Agreement with NASA to facilitate the development of high speed technologies.
- Business Wire
Virgin Galactic’s SpaceShipTwo Completes First Flight From Spaceport America
Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or "the Company") and The Spaceship Company ("TSC") today announced the successful completion of its first SpaceShipTwo test flight from Spaceport America.
- IPO-Edge.com
Third Social Capital SPAC Has $720 Million Liftoff – But What About Other IPOs?
By John Jannarone These days, Chamath Palihapitiya seems to defy gravity. The question is whether anyone else can perform the simple act of taking a company public. Mr. Palihapitiya’s third special purpose acquisition company, or SPAC, broke a cold streak in the IPO market this week with a $720 million offering by Social Capital Hedosophia Holdings […]
- InvestorPlace
Why Virgin Galactic Could Keep Falling as Investor Unease Increases
In the first quarter of 2020, Virgin Galactic (NYSE:SPCE) defied gravity. The stock peaked at an incredible $42.89 by late February. The impossible valuations came to a quick end when market selling accelerated. The nearly full shutdown across the United States and in Europe put an end to reckless stock buying. SPCE stock fell below $10 last month and is in danger of forging new lows ahead.Source: Christopher Penler / Shutterstock.com Why would investors speculate on Virgin Galactic when the company ran out of cash and reported revenue of just $530,000? It also lost $73 million in the fourth quarter.Virgin Galactic said it had $480 million in cash in Q4. Adjusted EBITDA shrunk to a negative $55 million in the period. Despite the poor results, the company said it entered into a new contract with the Italian Air Force. It entered into a strategic partnership with Boeing (NYSE:BA), which brings $20 million worth of Boeing investments to the company. Spaceport America completed many milestones, including exercising a mission control, ground operational elements and related external contracts with suppliers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Backlog GrowthUnder its "One Small Step" initiative, the company re-opened space flight sales. This allows customers to pay a refundable $1,000 deposit to book a ticket. A confirmed spaceflight moves them to "One Giant Leap." Here, the customer becomes part of the Virgin Galactic Future Astronaut Community. * 7 Restaurant Stocks to Buy for a Big Rebound If competitor SpaceX needed a $500 million cash raise, investors should assume that Virgin Galactic will need the same level of funding. The Q4 results do not give much useful information, other than characterizing the pre-revenue company as a typical start-up. Until it's up and running and the reservations are converted to revenue, investors have no idea what they're paying for SPCE stock.On its Feb. 25 conference call, management touted its first-mover advantage. "We expect to benefit greatly from our first-mover advantage, which is reinforced by significant barriers to entry for potential new competitors supported by the substantial investment we have made in our technology and the progress we have achieved to-date." Erring on Side of CautionIn reality, Virgin Galactic will not ramp up revenue until next year (2021). Until then, it will have no cash flow and only operating costs. The sudden breakdown in the economy adds more uncertainties. This is due to countries doing what it takes to stop the further spread of the novel coronavirus. But those who booked reservations when they had a job may no longer have discretionary income left to afford a flight. Still, investors may assume that only those who are highly paid booked a ticket.The sharp deterioration in SPCE stock in the last week suggests that the market is erring on the side of caution. Investors will wait for the company to start its flights in 2021. Once revenues start growing, the market may accumulate shares. * 7 Penny Stocks To Buy with Massive Upside Potential Analysts are very bullish on Virgin Galactic. The average price target from three analysts is $29.67 (according to TipRanks). Conversely, Stock Rover gave SPCE stock a value score of 17/100 (based on price-to-earnings), a quality score of 30 (based on return on invested capital), and a growth score of 24/100.It is too soon to buy Virgin Galactic as the stock continues falling. The markets are becoming jittery and are unwilling to bet on unproven stocks. As such, keep this stock on the "maybe" list for later.Chris Lau, contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Why Virgin Galactic Could Keep Falling as Investor Unease Increases appeared first on InvestorPlace.
