Virgin Galactic (SPCE) Stock Downgraded Despite Reopening Space Tourism Sales

TLDR

• Wall Street Zen lowered SPCE’s rating from “hold” to “sell” on April 4, 2026
• Shares are trading near $2.43, while the average analyst price target is $3.45
• Virgin Galactic has resumed selling seats on its Delta Class spacecraft for $750,000 each
• The company announced Q1 EPS of ($0.98), which surpassed expectations, whereas revenue of $0.31 million fell short of predictions
• Jefferies reduced its price objective from $8.00 to $5.00 while maintaining a “buy” rating, pointing to issues with cash flow timing

(SeaPRwire) –   On Friday, Virgin Galactic (SPCE) shares started the session at $2.43, a decline of 1.4%.

Virgin Galactic Holdings, Inc., SPCE

On April 4, 2026, Wall Street Zen lowered its rating on SPCE from “hold” to “sell.” This contributes to a generally cautious analyst sentiment, as MarketBeat’s consensus rating is “Reduce” with a mean price target of $3.45.

Morgan Stanley maintains an “underweight” rating with a target of $2.30. Weiss Ratings also labels the stock a “sell.” Among the six analysts covering the stock, there is one buy, three holds, and two sells.

Earlier this week, Jefferies lowered its price target from $8.00 to $5.00 but retained its “buy” recommendation. The firm highlighted concerns regarding cash flow timing within the developing space industry.

The 52-week range for SPCE is between $2.13 and $6.64. The stock is trading below its 50-day moving average of $2.56 and its 200-day average of $3.25. A beta of 2.20 indicates the stock’s high volatility compared to the broader market.

Virgin Galactic reported a Q1 EPS of ($0.98) on March 30, exceeding the consensus estimate of ($1.12). However, revenue of $0.31 million missed the $0.41 million forecast by analysts.

The company shows a negative return on equity of 108.78% and a negative net margin of 18,063.93%. While the debt-to-equity ratio is 1.87, the current ratio of 2.87 implies sufficient short-term liquidity.

The market capitalization is approximately $177 million. For the current fiscal year, analysts forecast a full-year EPS of ($16.05).

New Tickets, New Ship

During the same week it faced downgrades, Virgin Galactic started taking bookings for its new Delta Class spacecraft. The cost per ticket is $750,000, an increase from the $600,000 price tag in 2023.

The Delta Class accommodates six passengers, which is two more than the previous model. Virgin Galactic plans to test the vessel this summer, aiming to launch commercial operations in the autumn. Initial research flights will occur, followed by passenger missions six to eight weeks after.

The firm is offering an initial group of 50 tickets before halting sales. CEO Michael Colglazier indicated that prices will rise in subsequent offerings, although specific numbers have not yet been determined.

Additionally, there is a waiting list of 675 “founding astronauts”—customers who placed deposits years ago—who will fly at rates lower than those offered to new purchasers.

The Path to 10 Flights a Month

The most recent commercial flight for Virgin Galactic was Galactic 07 on June 8, 2024. This mission marked the conclusion of operations for the VSS Unity, the company’s inaugural spacecraft.

Colglazier has established a goal of achieving 10 monthly flights by 2027, equating to roughly 60 passengers per month. The ability of the Delta Class to meet this frequency relies on the outcomes of the summer testing phase.

Institutional ownership accounts for 46.62% of SPCE. In recent quarters, multiple funds boosted their holdings, notably Truist Financial Corp, which increased its stake by 78.2% during the fourth quarter.

In January 2026, Susquehanna established a price target of $3.50.