Traders Purchase Large Volume of Call Options on Virgin Galactic (NYSE:SPCE)

Virgin Galactic Holdings, Inc. (NYSE:SPCE) was the recipient of unusually large options trading activity on Tuesday. Stock investors purchased 27,449 call options on the stock. This represents an increase of approximately 40% compared to the typical daily volume of 19,562 call options.

Virgin Galactic Trading Up 3.7%

Shares of SPCE stock opened at $3.22 on Thursday. Virgin Galactic has a 12-month low of $2.18 and a 12-month high of $6.77. The company has a current ratio of 2.87, a quick ratio of 2.87 and a debt-to-equity ratio of 1.87. The firm’s 50 day moving average is $3.80 and its 200 day moving average is $3.49. The stock has a market capitalization of $185.15 million, a P/E ratio of -0.43 and a beta of 1.98.

Virgin Galactic (NYSE:SPCE) last announced its earnings results on Thursday, November 13th. The company reported ($1.09) earnings per share for the quarter, beating analysts’ consensus estimates of ($1.51) by $0.42. The business had revenue of $0.37 million during the quarter, compared to analyst estimates of $0.32 million. Virgin Galactic had a negative net margin of 17,615.71% and a negative return on equity of 108.00%. Research analysts expect that Virgin Galactic will post -16.05 earnings per share for the current year.

Institutional Trading of Virgin Galactic

A number of hedge funds have recently bought and sold shares of the company. BNP Paribas Financial Markets boosted its position in Virgin Galactic by 61.9% in the third quarter. BNP Paribas Financial Markets now owns 13,608 shares of the company’s stock worth $53,000 after purchasing an additional 5,205 shares during the last quarter. Bank of America Corp DE increased its position in shares of Virgin Galactic by 34.1% during the 3rd quarter. Bank of America Corp DE now owns 23,002 shares of the company’s stock valued at $89,000 after purchasing an additional 5,844 shares during the last quarter. American Century Companies Inc. lifted its stake in shares of Virgin Galactic by 44.8% in the 2nd quarter. American Century Companies Inc. now owns 19,845 shares of the company’s stock worth $54,000 after purchasing an additional 6,143 shares during the period. Russell Investments Group Ltd. boosted its holdings in shares of Virgin Galactic by 76.6% in the second quarter. Russell Investments Group Ltd. now owns 16,773 shares of the company’s stock worth $46,000 after buying an additional 7,274 shares during the last quarter. Finally, Rhumbline Advisers boosted its holdings in shares of Virgin Galactic by 21.9% in the first quarter. Rhumbline Advisers now owns 40,487 shares of the company’s stock worth $123,000 after buying an additional 7,282 shares during the last quarter. Hedge funds and other institutional investors own 46.62% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on SPCE shares. Wolfe Research reissued a “peer perform” rating on shares of Virgin Galactic in a research report on Friday, November 14th. Susquehanna reiterated a “neutral” rating and set a $4.00 target price (up from $3.25) on shares of Virgin Galactic in a research note on Thursday, October 9th. Morgan Stanley set a $2.30 target price on Virgin Galactic and gave the stock an “underweight” rating in a report on Friday, December 12th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Virgin Galactic in a report on Wednesday, October 8th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Virgin Galactic currently has an average rating of “Reduce” and an average target price of $4.33.

About Virgin Galactic

Virgin Galactic Holdings, Inc, an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies.