Virgin Galactic Holdings ( (SPCE) ) has fallen by -28.79%. Read on to learn why.
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Virgin Galactic Holdings has experienced a significant stock price decline of 28.79% over the past week. This downturn comes in the wake of a recent announcement regarding a capital realignment plan, which includes the repurchase and retirement of $355 million of its 2027 convertible notes, issuance of $203 million of new notes due in 2028, and selling $46 million of its common stock. While these measures aim to alleviate near-term debt pressures and extend financial runway into 2028, they have also raised investor concerns about the timing of the company’s commercialization efforts.
Morgan Stanley has responded to these developments by lowering its price target for Virgin Galactic from $2.50 to $2.30, maintaining an Underweight rating on the stock. The analyst consensus currently holds a ‘Hold’ rating with an average price target of $3.66. The company’s latest earnings report revealed a quarterly revenue of $365 thousand and a GAAP net loss of $64.42 million, highlighting ongoing financial challenges.
Despite the strategic moves to manage debt, Virgin Galactic’s stock is under pressure due to weak financial performance and investor skepticism about future profitability. The company’s focus on pioneering space travel for private individuals and governments remains ambitious, but its financial metrics and technical analysis suggest a bearish outlook. Investors are advised to keep a close watch on the company’s progress in achieving its commercial goals.