Why Virgin Galactic Stock Popped Today

Shares of Virgin Galactic (NYSE: SPCE) are on a tear again, up 17.6% in 10:55 a.m. EST trading. But is this more Robinhood/WSB madness, or is there real news driving the stock higher today?

It certainly could be Robinhood traders, once again squeezing Virgin Galactic shorts, that's driving today's rally. With 16.5% short interest in the stock, any upward momentum in Virgin shares holds the potential to spook short-sellers out of their positions, resulting in more buying that drives the shares higher. But why might investors be buying in the first place so as to create that momentum?

Two related stories suggest themselves. First, on Monday this week, the company announced that its spaceplane test-flight program is back on track, with the next attempt at reaching space scheduled to take place as soon as Feb. 13. A second scheduled test flight could then be conducted before the month is out, setting up a situation in which Virgin Galactic founder Sir Richard Branson could take his own flight -- reassuring customers that the spaceplane is safe to fly on -- as early as March.

Source Fool.com