Shares of Virgin Galactic (NYSE:SPCE) have been on a downward trend, leading to a decline in investors’ wealth. This penny stock (learn more about penny stocks here) lost about 66% of its value over the past year. Moreover, the stock of this aerospace and space travel company lost more than 28% of its value year-to-date.
Though the company has completed 11 spaceflights and the production of its next-generation Delta-class ships is underway, concerns regarding cash burn and profitability have negatively impacted the company’s share price.
Virgin Galactic posted a negative free cash flow of $105 million in Q3. Further, the company projects its free cash flow to be in the range of negative $125 million to $135 million in the fourth quarter. Notably, its revenue and margins could remain under pressure until the Delta Class spaceships, which have better unit economics, are operational. With the company confirming that Delta Class spaceships are on schedule for revenue service in 2026, its financials may face pressure over the next two years.
What is the Prediction for SPCE Stock?
Despite the significant correction in SPCE stock, Wall Street remains sidelined. It has one Buy, three Hold, and two Sell recommendations for a Hold consensus rating. Analysts’ average price target of $2.70 implies 53.41% upside potential from current levels.
SPCE stock could remain under pressure as the company continues to burn cash. Meanwhile, investors can leverage TipRanks’ penny stock screener to identify top-rated penny stocks.
