Virgin Galactic (SPCE, $30.73) Abu Dhabi fund cuts holding; Susquehanna downgrades shares
Virgin Galactic shares rose on Tuesday, even after news of Abu Dhabi's sovereign-wealth fund reducing its holding in the space-tourism company and Susquehanna analysts downgrading the stock.
According to a regulatory filing, Mubadala Investment, Abu Dhabi's sovereign-wealth fund, pared its stake in the company to 11.8 million shares ( 5.04%), from 14.9 million shares (7.08%). But Mubadala remains Virgin's third largest shareholder, according to S&P Capital.
Virgin Galactic’s shares was downgraded to neutral from positive by Susquehanna analysts. Their price target on the shares $32 a share, indicating potential 5.2% downside from the shares' Friday closing price.
Virgin announced in December that shareholders may sell up to nearly 113 million shares following the end of a lockup period.
SPCE in upward trend: 10-day moving average moved above 50-day moving average on October 17, 2024
The 10-day moving average for SPCE crossed bullishly above the 50-day moving average on October 17, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 07, 2024. You may want to consider a long position or call options on SPCE as a result. In of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SPCE just turned positive on October 07, 2024. Looking at past instances where SPCE's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
SPCE moved above its 50-day moving average on October 14, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPCE advanced for three days, in of 267 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SPCE moved out of overbought territory on October 21, 2024. 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 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where SPCE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 .
SPCE broke above its upper Bollinger Band on October 18, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (0.440) is normal, around the industry mean (7.141). P/E Ratio (0.000) is within average values for comparable stocks, (44.496). SPCE's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.790). SPCE has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.015). P/S Ratio (11.416) is also within normal values, averaging (4.176).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady 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 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 68, placing this stock worse than average.
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General Information
a holding company, which engages in the business of owning and operating privately built spaceships
Industry AerospaceDefense