Virgin Galactic (NYSE: SPCE) stock price has been in a downward spiral since last year. The bankruptcy of its former subsidiary Virgin Orbit (NASDAQ: VORB), triggered another wave of sell-off. Consequently, the stock of Richard Branson’s brainchild is trading near its all-time low without any signs of recovery.
US stocks have been trading sideways for the past few weeks as the markets try to price in the next move of the US Fed. Despite a sideways price action, riskier equities like Virgin Galactic stock have faced a strong sell-off during the past few days.
Due to the collapse of its former subsidiary Virgin Orbit (NASDAQ: VORB), Virgin Galactic share price has suffered a lot. The stock is currently 53% down from its YTD peak, and there is a high probability of another leg down. On Wednesday, the shares of the company dropped by 1.58% within their first hour of trading. At press time, Virgin Galactic stock price was trading at $3.11.
According to the most recent Virgin Galactic news, the company has reduced its board size. The decision to decrease the count to nine from the current eleven members was taken on April 21. In other news, the CEO, Michael Colglazier, racked in $10.8 million during 2022, according to a recent filing.
You don’t have to be a genius to read the following NYSE: SPCE chart. It is quite evident that the price has been in a tailspin since its record rally in 2021. The downward price action has formed a descending channel which was also mentioned in our last week’s analysis. The bottom of this wedge has become a good support for the price.
My Virgin Galactic stock price forecast will remain bearish as long as the price stays inside the above-mentioned pattern. In the coming days, I expect the shares to retest the bottom of the wedge once again, which may result in a strong rebound. This could be a good opportunity to accumulate the stock from a long-term perspective.
In the meantime, I’ll keep sharing updated outlook on the Virgin Galactic shares in my free Telegram group that you’re welcome to join.
This post was last modified on Apr 26, 2023, 15:43 BST 15:43