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Virgin Galactic Pops 32% After Offering Future Spaceflight Reservation

Shares of Virgin Galactic Holdings, Inc. (NYSE: SPCE) jumped almost 32% to close at $10.74 on Tuesday. The price action followed the aerospace and space travel company’s announcement to open the ticket sales to the public for spaceflight reservations on February 16. 

Along with the initial spaceflight reservation, the company has offered membership in the unique community of Future Astronauts. This will provide the members access to money-can’t-buy experiences, events, trips and space-readiness activities. 

Spaceflight reservations are offered for a total price of $450,000, with an initial deposit of $150,000. Final payment will be made by the customers prior to their flight. 

Details of the Spaceflight 

The spaceflight will be launched from Spaceport America in New Mexico. It will provide a 90-minute journey experience to astronauts, including a signature air launch and Mach-3 boost to space. 

To make the launch of public sales livelier, Virgin Galactic has unveiled a new and iconic consumer brand. 

The President and Chief Business Officer at Commercial and Consumer Operations of Virgin Galactic, Blair Rich, said, “We have developed a compelling and effective sales process to support the growth of our commercial business. A global, commercial spaceline demands an iconic and timeless brand. It is important that our brand represents our dynamic customer offering, and speaks to our unique experience, style and service.” 

CEO’s Comments 

The CEO of Virgin Galactic, Michael Colglazier, said, “At Virgin Galactic, we believe that space is transformational. We plan to have our first 1,000 customers on board at the start of commercial service later this year, providing an incredibly strong foundation as we begin regular operations and scale our fleet.” 

Wall Street’s Take 

Recently, Bernstein analyst Douglas Harned maintained a Hold rating on the stock and reduced the price target to $10 (6.89% downside potential) from $22. 

Overall, the stock has a Hold consensus rating based on 1 Buy, 1 Hold and 1 Sell. The average Virgin Galactic price target of $14.67 implies 36.59% upside potential. Shares have lost 64.7% over the past year. 

Website Traffic 

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Virgin Galactic’s performance in the December quarter. 

We could notice a website traffic downtrend on the website traffic tool. In 4Q21, there was a 76.65% decrease in traffic to the overall Virgin Galactic website from total estimated visits, on a global basis. This, in turn, indicates the company might report disappointing fourth-quarter top-line results as a whole.

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