Virgin Galactic (SPCE, $21.57) reports Q2 loss

Virgin Galactic  posted a wider-than-expected second quarter loss.

The space flight company’s net loss for the quarter came in at -$63 million, or -30 cents a share, compared to the -26 cents a share loss expected by analysts polled by FactSet. In the year-ago quarter, the company had a loss of -$41 million, or -23 cents a share.

Virgin Galactic said that it continued to make progress on its test flight program, including conducting two successful glide flights from Spaceport America. According to the company, it experienced continued growth in customer demand with increases in paid enrollments for its ‘One Small Step’ program.

As of July 30, the company has received more than 700 deposit payments, with the total number of ‘Future Astronauts’ holding at approximately 600.

Also, according to a filing with the SEC, Virgin Galactic will issue another 20.5 million in shares to support additional research and development and operations.

According to Tickeron's analysis says:

SPCE in Downtrend: Stochastic indicator is staying in oversold zone for 1 day

Be on the lookout for a price bounce soon.

Throughout the month of 07/01/20 - 08/03/20, the price experienced a +44% Uptrend, while the week of 07/27/20 - 08/03/20 shows a -4% Downtrend.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on August 03, 2020. Traders may consider buying the ticker or exploring call options. In 10 of 11 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 90%.

The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 3 of 3 similar backtested cases where SPCE's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 90%.

The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on July 10, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 2 of 2 similar cases where SPCE's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 90%.

The Aroon Indicator entered an Uptrend today. In 50 of 53 similar cases where SPCE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 3 of 5 cases where SPCE's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 60%.

The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 6 of 7 cases where SPCE's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 86%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 5 of 6 cases where SPCE's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 83%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 46%. During the last month, the daily ratio of advancing to declining volumes was 1.5 to 1.

The Tickeron PE Growth Rating for this company is 2 (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. SPCE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 99 (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: SPCE's P/B Ratio (12.20) is slightly higher than the industry average of (2.76). P/E Ratio (433.86) is within average values for comparable stocks, (182.37). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (1.89). Dividend Yield (0.00) settles around the average of (0.64) among similar stocks. SPCE's P/S Ratio (3900.41) is very high in comparison to the industry average of (82.40).

The Tickeron SMR rating for this company is 100 (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 100 (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 76, placing this stock worse than average.