Virgin Galactic Holdings (NYSE:SPCE), a spaceflight company, slid in trading on Monday after the company’s founder, British billionaire Richard Branson, ruled out investing in the company any further. In an interview with the Financial Times, Branson cited financial constraints after the pandemic as one of the reasons for the halt in funding.
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The founder stated that Virgin Galactic should have “sufficient funds to do its job on its own.” This is even as the company recently announced layoffs and suspended commercial spaceflights for 18 months to fund the development of a larger spacecraft, Delta. Branson’s Virgin Investments remains the second-largest shareholder in SPCE with a 7.69% stake, behind State Street Global Advisors with a stake of 8.43%.
Should I Buy SPCE Stock?
Analysts are bearish about SPCE stock, with a Moderate Sell consensus rating based on one Buy, two Holds, and four Sells. SPCE stock has plunged by more than 40% year-to-date, and the average SPCE price target of $2.08 implies an upside potential of 7.5% at current levels.
