Crispr Therapeutics shares tumble after significant earnings miss
Virgin Galactic Holdings Inc. (NYSE:SPCE), the spaceflight company aiming to pioneer commercial space tourism, saw its stock plummet to a 52-week low of $2.85. While the company maintains a strong liquidity position with a current ratio of 4.19 and more cash than debt on its balance sheet, according to InvestingPro data, market concerns persist. This latest price level reflects a stark contrast to the investor optimism that once buoyed the company’s market valuation. Over the past year, the stock has experienced a precipitous drop, with the 1-year change data revealing a staggering -88.44% decline. This downturn has been attributed to a combination of factors, including prolonged delays in commercial flight operations, investor skepticism over the viability of space tourism, and a broader market shift away from high-growth speculative stocks. With annual revenue of just $7.04M and significantly negative profit margins, the company faces substantial operational challenges. As Virgin Galactic continues to navigate through its technical and regulatory challenges, shareholders are closely monitoring the company’s progress towards achieving its ambitious goals. InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels, with 18 additional key insights available to subscribers.
In other recent news, Virgin Galactic reported its fourth-quarter 2024 earnings, highlighting a revenue of $400,000 primarily from future astronaut membership fees. The company achieved a significant reduction in operating expenses, decreasing by 29% to $384 million for the full year. Virgin Galactic’s strategic focus on developing Delta class spaceships aims for a major revenue increase by 2026, with projections reaching $450 million. Cowen analysts recently adjusted their outlook on Virgin Galactic, lowering the price target to $4.50 while maintaining a Buy rating. The firm noted the company’s transition into a year focused on building and testing, with plans to achieve sustained commercial service by the second half of 2026. Virgin Galactic reported a fourth-quarter free cash flow loss of $117 million, within its guidance range, and plans to reduce spending below $100 million by the end of 2025. The company holds a liquidity position of $657 million, with access to an additional $270 million through an at-the-market offering. Despite these developments, Virgin Galactic faces the maturity of $425 million in convertible notes due in 2027.
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