Virgin Galactic (SPCE) Is Up 18% in 7 Days. Can Earnings Keep the Run Going?

TLDR

• SPCE stock is trading near $3.10, with options pricing in a 14.84% move after its August 12 earnings report.
• The implied move range runs from roughly $2.64 to $3.56.
• Over the past four quarters, SPCE has averaged an 8.7% one-day post-earnings move, well below the current implied move.
• Cash burn is a key focus: Virgin Galactic expects $87M to $92M in Q2 free cash outflow, ending Q1 with $251M in cash.
• Wall Street holds a Moderate Buy consensus with an average price target of $4.00, implying 29% upside.

Virgin Galactic (SPCE) is set to report earnings on August 12, and options traders are not sitting quietly. With the stock near $3.10, the options market is pricing in a 14.84% swing in either direction, pointing to an implied range of $2.64 to $3.56.

Virgin Galactic Holdings, Inc., SPCE

That is a notable setup heading into the report.

Over the past four quarters, SPCE has averaged an 8.7% one-day move after earnings. The current implied move of nearly 15% is almost double that average, which tells you traders are expecting something bigger this time around.

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