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 -23.36% downward trend, falling for three consecutive days on May 26, 2023
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where SPCE declined for three days, in of 230 cases, the price declined 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 .
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.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable 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 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 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 (2.604) is normal, around the industry mean (25.112). P/E Ratio (50.000) is within average values for comparable stocks, (311.012). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.856). SPCE has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.023). P/S Ratio (384.615) is also within normal values, averaging (173.520).
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.
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