Virgin Galactic Holdings, Inc. (SPCE) shares rose more than 15% during Thursday's session after the company appointed Michael Colglazier as chief executive officer and reassigned George Whitesides to chief space officer.
Colglazier brings more than three decades of experience developing and growing consumer-orientated multi-billion-dollar businesses, including at The Walt Disney Company (DIS). Meanwhile, Whitesides will focus on developing future business opportunities, including point-to-point hypersonic travel and orbital space travel, and chair the company's Space Advisory Board.
Earlier this week, Alembic Global Advisors initiated coverage of Virgin Galactic stock with an Overweight rating and a price target of $23.00 per share. Analyst Peter Skibitski said that the company's mid-term financial projections could make it one of the most attractive business models in its coverage universe. EBITDA margins of more than 46% by 2023 would make it the highest in the group by a long shot.
In June, Virgin Galactic also signed an agreement with Johnson Space Center to encourage commercial participation in orbital human spaceflight to the International Space Station while enabling the development of a robust economy in Low Earth Orbit.
From a technical standpoint, Virgin Galactic shares briefly broke out from trendline resistance toward their prior highs. The relative strength index (RSI) moved toward overbought levels of 68.83, but the moving average convergence divergence (MACD) remains neutral. These indicators suggest that the stock could see some consolidation before any significant short-term move higher.
Traders should watch for a move above trendline resistance at $21.00 over the near term. After the stock consolidates near those levels, traders could see a move to retest prior highs of around $42.49 over the the intermediate to long term. If the stock moves lower, traders could see a move to retest the 50-day moving average at $16.70 or trendline support at $15.50.
The author holds no position in the stock(s) mentioned except through passively managed index funds.