Virgin Galactic (SPCE) - Get Report shares fell on Wednesday after Cowen slashed its price target for the space-tourism company and Ark Investment Management’s Cathie Wood sold shares from its space ETF.
The Las Cruces, N.M., unnerved investors on Tuesday as it was unable to set a date for its first test flight. It had been scheduled for this month.
The stock recently traded at $16.51, down 8.9%. It has dropped 72% over the past three months amid uncertainty about its future. The company was founded by the U.K. entrepreneur Richard Branson.
Cowen analyst Oliver Chen slashed his price target to $23 from $40 while affirming his outperform rating.
Virgin Galactic remains attractive long term but needs to demonstrate a successful first test flight to boost the shares in the near term, he said, according to Bloomberg.
While it’s unclear when Virgin will generate revenue, the stock’s valuation is now “more reasonable,” he said.
In late March, when the fund debuted, it owned 672,000 shares of Virgin, valued at about $20 million, CNBC reports.
Now it owns just 7,622 shares, valued at about $126,500. That makes it the ETF’s smallest holding, with a 0.02% weight, CNBC says.
On Tuesday, Virgin reported a wider-than-expected first-quarter loss. On April 20, TheStreet.com Founder Jim Cramer discussed his thoughts about Wood’s earlier sale of Virgin stock. He called the move “quizzical.”