- Virgin Galactic Stock slumped 10% this week on the news that founder Richard Branson sold another $300 million of stock.
Virgin Galactic Stock slumped 10% this week on the news that founder Richard Branson sold another $300 million of stock.
Virgin Galactic Holdings (NYSE: SPCE) hit a 7-month low of $14.44 on Thursday as sellers rushed to exit the ill-performing space tourism company. Branson’s latest transaction brings his total sales to more than $1 billion, reducing his holding to 11.6%. A representative for Virgin Group said the deal would help support Branson’s other business interests, including Virgin Atlantic Airways. However, the market appears less-than-impressed with the insider sale.
Notably, when Chairman Chamath Palihapitiya sold $213m of stock in March 2020, the stock sold off more than 40% in the six weeks that followed. And considering the current headwinds facing equities, the price may react similarly now.
SPCE Price Forecast
The daily chart shows SPCE is sitting on long-term horizontal support at $14.27 (2021 low). If the stock trades below $14.27, I expect the price to extend towards the March 2020 pandemic low of around $9.00.
Whilst the above statement is incredibly bearish, it’s hard to find a compelling counter-argument in the current environment. Huge insider selling ahead of an accelerated taper from the fed paints a bleak picture for Virgin Galactic. Furthermore, the technical backdrop is extremely poor and will remain so as long as the price is below the November 10th high of $21.68.
On that basis, I believe the $9.00 price target is easily achievable. However, as mentioned, a close above $21.68 improves the outlook and therefore invalidates the bearish view.
Virgin Galactic Stock Chart (Daily)

For more market insights, follow Elliott on Twitter. Virgin galactic stock
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.