On Thursday, shares of Virgin Galactic Holdings, Inc. (NYSE:SPCE) reached at $46.35 price level during last trade its distance from 20 days simple moving average was 62.87%, and its distance from 50 days simple moving average was 70.24% while it has a distance of 124.96% from the 200 days simple moving average. SpaceX launched another 10 Starlink satellites into orbit, making the company’s globe-spanning “internet broadband from space” satellite constellation the largest one in orbit by a factor of five.
And that’s the least significant bit of today’s news.
Adding Starlink satellites to orbit, you see, was only a small part of Sunday’s mission. The larger part was reducing the cost of putting satellites in space — dramatically — with the first successful demonstration of SpaceX’s Smallsat Rideshare Program … and setting a new record for most satellites put in orbit by a single rocket.
All aboard the Smallsat Express!
In addition to SpaceX’s own 10 Starlink satellites, Sunday’s manifest included:
- 48 Planet SuperDove Earth-imaging satellites.
- 36 Swarm Technologies “SpaceBee” Internet-of-Things
- Nine Spire Lemur-2 Earth traffic monitoring satellites.
- Spaceflight’s new SHERPA-FX space tug, which carries and will further distribute 18 payloads of its own.
And that’s just a partial list. In total, Transporter-1 carried 143 satellites to orbit, eclipsing the old record for total number of satellites carried on a single launch set by India’s PSLV back in 2017. (PSLV had carried 104 satellites).
What it means for SpaceX
First announced in the summer of 2019, SpaceX’s smallsat rideshare program promised to run annual “regularly scheduled, dedicated Falcon 9 rideshare missions” to space for satellites massing “up to 150 kg” at prices “as low as $2.25 million per mission.”
Just one month after announcing the rideshare program, SpaceX lowered its pricing, promising to charge just $1 million to launch a 200 kg payload, and expanded the idea beyond the original “SmallSat Express” concept. In addition to annual dedicated missions, SpaceX now also hosts rideshare satellites aboard its much more frequent Starlink launches. These “Starlink rideshares,” however, don’t come near the scale of Transporter-1, which seems to have vacuumed up a lot of the demand for small satellite launches all around the globe.
Think about it. 133 non-SpaceX satellites. Probably 2,500 kilograms worth of non-SpaceX payload.
This single launch put more hardware in orbit than eight fully loaded Rocket Lab Electron rockets could manage (launching with a 300 kg payload). Virgin Orbit, which completed its first successful orbital rocket launch last weekend, would have to launch four more times, at 500 kg each, to match the amount of non-SpaceX hardware that went up on Transporter-1. And even so, half of Transporter-1’s payload was taken up by Starlink satellites.
Past 5 years growth of SPCE observed at 0, and for the next five years the analysts that follow this company are expecting its growth at 0. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges.
The stock has a market cap of $10.54B with 225.25M shares outstanding, of which the float was 140.61M shares. Analysts consider this stock active, since it switched Trading volume reached 78,540,192 shares as compared to its average volume of 17.11M shares. The Average Daily Trading Volume (ADTV) demonstrates trading activity related to the liquidity of the security. When Ave Volume tends to increase, it shows enhanced liquidity.
But when Ave Volume is lower, the security will tend to be cheap as people are not as keen to purchase it. Hence, it might have an effect on the worth of the security. SPCE’s relative volume was 4.90. Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.
Important Technical Indicators Analysis Report and Volatility Measures:
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the predictable return of an asset based on its beta and predictable market returns. Beta is also known as the beta coefficient.
A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. After a recent check, beta value for this stock comes out to be 0.85. A statistical measure of the dispersion of returns (volatility) for SPCE producing salvation in Investors mouth, it has week volatility of 20.63% and for the month booked as 9.81%. Regardless of which metric you utilize, a firm understanding of the concept of volatility and how it is measured is essential to successful investing. A stock that maintains a relatively stable price has low volatility. When investing in a volatile security, the risk of success is increased just as much as the risk of failure.
The volatility value is used by the investors for various reasons and purposes in measuring the fundamental price change and the rate of variation in SPCE’s price. The ART is a specific type of indicator, which is capable of weighing up stock volatility in the financial markets effectively.
Virgin Galactic Holdings, Inc. has an average true range (ATR) of 3.95. Other technical indicators are worth considering in assessing the prospects for EQT. SPCE’s price to sales ratio for trailing twelve months was 2635.46 and price to book ratio for most recent quarter was 14.39, whereas price to cash per share for the most recent quarter was 14.21. The Company’s price to free cash flow for trailing twelve months was 0. Its quick ratio for most recent quarter was 6.60. Analysts mean recommendation for the stock was 2.00. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
Should You Go With High Insider Ownership?
Many value investors look for stocks with a high percent of insider ownership, under the theory that when management are shareholders, they will act in its own self interest, and create shareholder value in the long-term. This aligns the interests of shareholders with management, thus benefiting everyone. While this sounds great in theory, high insider ownership can actually lead to the opposite result, a management team that is unaccountable because they can keep their jobs under almost any circumstance.
Virgin Galactic Holdings, Inc.‘s shares owned by insiders remained 2.90%, whereas shares owned by institutional owners are 29.70%.
Where Do Relative Strength Index (RSI) Stands?
Perhaps, it is one of the most important indicators, because it is used in the technical analysis of the stock in the money market. The relative strength index (RSI) is claimed to depict the latest and past performances of the stock market, based upon the ending price volumes of the current trading period. The RSI is characterized as a momentum oscillator, evaluating the speed and scale of directional price shifts. The momentum exemplifies both rising and falling rates of the Price in the stock market. Using RSI, you can calculate momentum as the percentage of elevated closes to reduced closes. But if the stocks have experienced optimistic changes rapidly, then it might have an increased RSI than stocks. So, it might cause negative changes in the market.
The RSI index is largely used by traders on a 14-day time period and is evaluated on a range from 0 to 100, along with both high and low volumes marked at 70 and 30, correspondingly. Both the shorter and longer timeframes are used by the traders for shorter and longer purposes. It further adds high and low ranges like from 80 to 20 and from 90 to 10. This trend takes place less repeatedly.
However, it represents stronger momentum in the market. In the meantime, the Accenture plc’s 14-day RSI was settled at 83.28. All in all, the trends of the stock market were shifting slowly but surely.
Meanwhile, SPCE traded under umbrella of Industrials sector, the stock was traded 5.27% ahead of its 52-week high and 411.59% beyond its 52-week low. So, both the price and 52-week high indicators would give you a clear-cut picture to evaluate the price direction.