top partner

for CFD

Shares of Virgin Galactic (NYSE: SPCE) climbed as much as 10.8% early Wednesday, then settled to trade up 5.6% as of 2 p.m. ET. The move was likely driven by a combination of a new board appointment and bearish investors rushing to close out their positions in highly shorted stocks.

On the former, late yesterday Virgin Galactic announced the appointment of Luigi Brambilla to its board of directors. Brambilla is currently the Managing Director of Investments and Capital Markets at Virgin Group, which he joined in 2013, and serves as a member of the Investment Committee of the Branson Family office.

On short covering, Virgin Galactic’s need for capital markets experience

Brambilla’s capital markets experience should prove invaluable for Virgin Galactic as the company strives to find a balance between minimizing cash burn and scaling its spaceflight operations. Shares of the leading space economy stock have rallied more than 35% so far this month after the company announced a “strategic realignment” aimed at supporting production of its next-generation Delta spacecraft.

That said, Virgin Galactic is also a favorite target of short-sellers betting against the stock; more than 20% of its total float was sold short as of this morning. The recent rise has almost certainly left many of those short-sellers scrambling to cover their positions, driving the share price of Virgin Galactic higher in the process.

What’s next for Virgin Galactic stock?

To be clear — and noting shares are still down almost 60% over the past year even after the recent rebound — there are no guarantees these near-term gains will prove sustainable. Even as Virgin Galactic just completed its sixth successful human spaceflight in as many months, its current pace of flights is still nowhere near enough to propel the company to sustained profitability. Virgin Galactic has also clearly told investors the first of its Delta Class spaceships — which should each be capable of flying once per week — won’t be ready to commence revenue-generating missions until sometime in 2026.

Even so, Virgin Galactic continues to take steps in the right direction to that end. As long as it shows continued progress without any significant hiccups along the way, I’m perfectly content holding my shares.

10 stocks we like better than Virgin Galactic
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Virgin Galactic wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 15, 2023

Steve Symington has positions in Virgin Galactic. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]