Branson sells $300 million stake in Virgin Galactic (SPCE, $25.40)
Virgin Galactic founder Richard Branson sold about $300 million of shares, in order to support his other businesses hurt by the pandemic.
According to a regulatory filing, Branson sold off about 10.5 million shares, or 4%, of the company stock. That leaves him with an 18% stake. The Virgin Group continues to be the largest single shareholder in Virgin Galactic.
The proceeds from the sale will go partly toward Branson's travel and leisure businesses.
The stake sale in Virgin Galactic is Branson’s third since taking it public through a SPAC in 2019. His earlier stake sales were worth $504.5 million and $150.3 million in May 2020 and April 2021, respectively. Branson recovered more than $950 million of his investment in the space company through stake sales since taking it public.
SPCE in downward trend: price dove below 50-day moving average on May 26, 2023
SPCE moved below its 50-day moving average on May 26, 2023 date and that indicates a change from an upward trend to a downward trend. In of 27 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for SPCE moved out of overbought territory on May 24, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 25, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on SPCE as a result. In of 55 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SPCE turned negative on May 26, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 32 similar instances when the indicator turned negative. In of the 32 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPCE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for SPCE crossed bullishly above the 50-day moving average on May 17, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where SPCE advanced for three days, in of 209 cases, the price rose further within the following month. The odds of a continued upward trend are .
SPCE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 150 cases where SPCE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. SPCE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.689) is normal, around the industry mean (25.136). P/E Ratio (50.000) is within average values for comparable stocks, (311.254). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.852). SPCE has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.023). P/S Ratio (400.000) is also within normal values, averaging (174.186).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SPCE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a holding company, which engages in the business of owning and operating privately built spaceships
Industry AerospaceDefense
| 1 Day | |||
|---|---|---|---|
| MFs / NAME | Price $ | Chg $ | Chg % |
| ARREX | 22.22 | 0.03 | +0.14% |
| American Century Real Estate R5 | |||
| VEXAX | 105.30 | 0.04 | +0.04% |
| Vanguard Extended Market Index Admiral | |||
| PGRUX | 8.49 | N/A | N/A |
| Principal Global Real Estate Sec R5 | |||
| SEWIX | 13.81 | -0.03 | -0.22% |
| Guggenheim World Equity Income I | |||
| MISFX | 12.95 | -0.05 | -0.38% |
| Matthews Emerging Markets Sust Fut Inst | |||
SPCE and
Correlation & Price change
A.I.dvisor indicates that over the last year, SPCE has been loosely correlated with ASTR. These tickers have moved in lockstep 57% of the time. This A.I.-generated data suggests there is some statistical probability that if SPCE jumps, then ASTR could also see price increases.
| Ticker / NAME | Correlation To SPCE | 1D Price Change % | ||
|---|---|---|---|---|
| SPCE | 100% | +3.25% | ||
| ASTR - SPCE | 57% Loosely correlated | -0.76% | ||
| RKLB - SPCE | 55% Loosely correlated | +3.15% | ||
| RDW - SPCE | 50% Loosely correlated | +0.83% | ||
| MNTS - SPCE | 44% Loosely correlated | -1.18% | ||
| ACHR - SPCE | 43% Loosely correlated | +0.33% | ||
More | ||||
