Virgin Galactic's stock climbs ahead of final Unity spacecraft mission

By James Rogers

Virgin Galactic shares have been on a three-day losing streak

Shares of Virgin Galactic Holdings Inc. rose 2% in premarket trades as the space tourism company prepares for the final flight of its Unity spacecraft.

Virgin Galactic (SPCE) shares, which have been on a three-day losing streak, ended Thursday's session down 4%. The stock has registered just two gains in the last 16 sessions.

The company is targeting a launch window that opens June 8 for its Galactic 07 mission, which will be the final flight for Virgin Galactic's Unity spacecraft before the company halts commercial operations to develop its new Delta-class spacecraft.

Related: Virgin Galactic's stock rallies as milestone mission looms

"It's #Galactic07 Spaceflight Week!" Virgin Galactic wrote Monday on X, formerly known as Twitter. "Excitement is in the air as preparations ramp up for the upcoming mission. The window opens Saturday, June 8, 2024. Let the good times roll."

"Things are heating up!" Virgin Galactic posted on Thursday. "Today's focus was G Awareness training and Cabin training, giving the #Galactic07 crew a taste of what they can expect during their upcoming spaceflight journey."

The mission will carry three private astronauts, as well as astronaut researcher Tuva Cihangir Atasever, who is affiliated with Axiom Space and will be conducting will be conducting suborbital testing of insulin pens.

Related: Virgin Galactic's better-than-expected cash burn a positive sign, says KeyBanc

Unlike the current Unity spacecraft, which has four seats for paying passengers and can make a single spaceflight per month, the Delta spacecraft will have six passenger seats and will be capable of making up to eight spaceflights a month. Delta tickets will be priced at $600,000, compared with the current ticket price of $450,000.

The flight will also mark Virgin Galactic's seventh commercial and research spaceflight, its second spaceflight this year and its 12th overall.

Virgin Galactic gave an update on its closely monitored cash position when it reported its first-quarter results last month, with the company's cash burn in particular attracting attention.

Related: Virgin Galactic sets date for Unity spacecraft's final commercial flight

Virgin Galactic guided for lower-than-expected second-quarter revenue. However, analyst firm KeyBanc Capital Markets pointed to Virgin Galactic's lower-than-expected cash burn as a positive. Of 10 analysts surveyed by FactSet, two have a buy rating, five have a hold rating and three have an underweight or sell rating for Virgin Galactic.

Separately, the Swiss National Bank also increased its position in Virgin Galactic during the first quarter, according to a filing with the Securities and Exchange Commission.

Virgin Galactic ended the first quarter with cash, cash equivalents and marketable securities of $867 million, compared with $874 million at the end of the same period last year. The company's cash position is being closely watched. Virgin Galactic's shares slid in December after founder Richard Branson ruled out further investment in the space-tourism company, which had recently fleshed out its near-term growth strategy.

Related: These are the space stocks to keep an eye on in 2024

Virgin Galactic shares are down 66.2% in 2024, compared with the S&P 500 index's gain of 12.2%.

-James Rogers

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06-07-24 0739ET

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