Is Virgin Galactic Stock a Good Investment?
Virgin Galactic Investment Advice | SPCE |
- Examine Virgin Galactic's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Virgin Galactic's leadership team and their track record. Good management can help Virgin Galactic navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact Virgin Galactic's business and its evolving consumer preferences.
- Compare Virgin Galactic's performance and market position to its competitors. Analyze how Virgin Galactic is positioned in terms of product offerings, innovation, and market share.
- Check if Virgin Galactic pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Virgin Galactic's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Virgin Galactic Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Virgin Galactic Holdings is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Moderately volatile | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Virgin Galactic Stock
Researching Virgin Galactic's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 33.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.45. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Virgin Galactic Holdings recorded a loss per share of 13.89. The entity had not issued any dividends in recent years. The firm had 1:20 split on the 17th of June 2024.
To determine if Virgin Galactic is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Virgin Galactic's research are outlined below:
| Virgin Galactic generated a negative expected return over the last 90 days | |
| Virgin Galactic has high historical volatility and very poor performance | |
| Virgin Galactic has a very high chance of going through financial distress in the upcoming years | |
| The company reported the previous year's revenue of 7.04 M. Net Loss for the year was (346.74 M) with loss before overhead, payroll, taxes, and interest of (82.99 M). | |
| Virgin Galactic Holdings currently holds about 917.57 M in cash with (352.7 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.55. | |
| Virgin Galactic has a poor financial position based on the latest SEC disclosures |
Virgin Galactic uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Virgin Galactic Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Virgin Galactic's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Virgin Galactic's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 136.07 M.Basic technical analysis of Virgin Stock
As of the 26th of March, Virgin Galactic has the Risk Adjusted Performance of (0.14), variance of 23.28, and Coefficient Of Variation of (581.50). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Virgin Galactic Holdings, as well as the relationship between them. Please validate Virgin Galactic Holdings information ratio, and the relationship between the coefficient of variation and value at risk to decide if Virgin Galactic is priced more or less accurately, providing market reflects its prevalent price of 3.58 per share. Given that Virgin Galactic Holdings has information ratio of (0.17), we advise you to double-check Virgin Galactic Holdings's current market performance to make sure the company can sustain itself at a future point.Virgin Galactic's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Virgin Galactic insiders, such as employees or executives, is commonly permitted as long as it does not rely on Virgin Galactic's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Virgin Galactic insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Virgin Galactic's Outstanding Corporate Bonds
Virgin Galactic issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Virgin Galactic Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Virgin bonds can be classified according to their maturity, which is the date when Virgin Galactic Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Virgin Galactic's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Virgin Galactic's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (0.68) | |||
| Mean Deviation | 3.47 | |||
| Coefficient Of Variation | (581.50) | |||
| Standard Deviation | 4.82 | |||
| Variance | 23.28 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.84) | |||
| Total Risk Alpha | (0.83) | |||
| Treynor Ratio | (0.69) | |||
| Maximum Drawdown | 25.12 | |||
| Value At Risk | (8.22) | |||
| Potential Upside | 7.43 | |||
| Skewness | 0.4966 | |||
| Kurtosis | 1.69 |
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (0.68) | |||
| Mean Deviation | 3.47 | |||
| Coefficient Of Variation | (581.50) | |||
| Standard Deviation | 4.82 | |||
| Variance | 23.28 | |||
| Information Ratio | (0.17) | |||
| Jensen Alpha | (0.84) | |||
| Total Risk Alpha | (0.83) | |||
| Treynor Ratio | (0.69) | |||
| Maximum Drawdown | 25.12 | |||
| Value At Risk | (8.22) | |||
| Potential Upside | 7.43 | |||
| Skewness | 0.4966 | |||
| Kurtosis | 1.69 |
Consider Virgin Galactic's intraday indicators
Virgin Galactic intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Virgin Galactic stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 132793.0 | |||
| Daily Balance Of Power | (0.89) | |||
| Rate Of Daily Change | 0.93 | |||
| Day Median Price | 3.69 | |||
| Day Typical Price | 3.65 | |||
| Price Action Indicator | (0.23) | |||
| Period Momentum Indicator | (0.25) | |||
| Relative Strength Index | 30.51 |
Virgin Stock media impact
Far too much social signal, news, headlines, and media speculation about Virgin Galactic that are available to investors today. That information is available publicly through Virgin media outlets and privately through word of mouth or via Virgin internal channels. However, regardless of the origin, that massive amount of Virgin data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Virgin Galactic news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Virgin Galactic relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Virgin Galactic's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Virgin Galactic alpha.
Virgin Galactic Corporate Management
| Seth Zaslow | Vice President - Investor Relations | Profile | |
| Aleanna Crane | Vice Communications | Profile | |
| David Mackay | Chief Pilot | Profile | |
| Swami Iyer | President - Aerospace Systems | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Virgin Galactic Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Virgin Galactic. If investors know Virgin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Virgin Galactic listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Virgin Galactic Holdings is measured differently than its book value, which is the value of Virgin that is recorded on the company's balance sheet. Investors also form their own opinion of Virgin Galactic's value that differs from its market value or its book value, called intrinsic value, which is Virgin Galactic's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Virgin Galactic's market value can be influenced by many factors that don't directly affect Virgin Galactic's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Virgin Galactic's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Virgin Galactic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Virgin Galactic's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.