Why Shares of Virgin Galactic Holdings Soared 42% Higher in the First Half of 2020
Skyrocketing more than 59% in December 2019, shares of Virgin Galactic Holdings (NYSE: SPCE) extended their upward trajectory and climbed 42% through the first six months of 2020, according to data from S&P Global Market Intelligence. In addition to an analyst's positive take on the stock, the company's progress in its flight test program and its burgeoning relationship with NASA motivated investors to pick up shares of this high-flying space stock.
While shares of Virgin Galactic significantly outperformed the S&P 500, which fell 4%, in the first half of the year, it hadn't exactly been smooth sailing for the stock. Hitting an intraday high over $42 in late February, shares subsequently plummeted nearly 70% and closed at $12.97 on March 23 as COVID-19 fears gripped the market, shaking investors' resolve. Things, however, started to look brighter the next day. Believing the sell-off in shares had left them undervalued, Adam Jonas, an analyst at Morgan Stanley, upgraded the stock to "overweight" from "even weight," assigning a price target of $24, according to Thefly.com. Investors rejoiced at the analyst's take, and the stock closed 26% higher from the day before.
Image source: Virgin Galactic.
Source Fool.com
