Key Highlights
- SPCE climbed nearly 10% during Friday’s premarket session after Thursday’s 19.53% rally
- The VSS Unity spacecraft successfully completed its inaugural glide flight at Spaceport America, marking the resumption of operations
- Preliminary court approval was granted for a $2.75 million insurance settlement that resolves two shareholder derivative suits
- The company anticipates glide testing with its newest Spaceship during Q3 2026, with rocket-powered space flights scheduled for Q4 2026
- Wall Street analysts maintain a consensus “Hold” recommendation with a mean price target of $3.43
Shares of Virgin Galactic (SPCE) surged approximately 10% in premarket trading Friday, extending Thursday’s impressive 19.53% rally. The stock traded near $4.98 as investors digested a pair of significant developments.
Virgin Galactic Holdings, Inc., SPCE
The space tourism company revealed that its VSS Unity spacecraft has resumed flight activities at Spaceport America in New Mexico. Unity successfully executed the initial glide flight in a series planned to train pilots and ground personnel before new Spaceship operations commence.
Spaceline President Mike Moses explained that Unity’s glide dynamics provide a real-world proxy for the forthcoming generation of vehicles. The descent trajectory, landing sequence, and pilot perspective all replicate the new spacecraft, offering aviators authentic training in environments they’ll encounter when the advanced Spaceship becomes operational.
Flight Operations Resume
Virgin Galactic intends to conduct glide testing with its inaugural new Spaceship during the third quarter of 2026. Powered test flights reaching space are slated for the fourth quarter of 2026.
The advanced fleet is engineered to operate twice weekly, with an anticipated vehicle lifespan exceeding 500 missions. This represents a substantial improvement over Unity’s previous operational frequency.
The operational restart comes after an extended grounding period that had dampened investor confidence. The sight of a spacecraft returning to active flight provided momentum traders with concrete evidence of progress.
Settlement Eliminates Legal Uncertainty
On May 19, 2026, the U.S. District Court for the Eastern District of New York issued preliminary approval for a settlement agreement in two persistent shareholder derivative lawsuits.
Virgin Galactic’s insurance carriers will contribute $2.75 million to the company, with half remaining with SPCE following final settlement approval. All allegations are projected to be dismissed or rendered moot upon final court sign-off.
The company’s present and former officers and directors rejected all claims and accusations of misconduct. The settlement eliminates the legal uncertainty that had been weighing on shareholder sentiment.
Chart Analysis
SPCE is currently trading significantly above its technical indicators. The stock stands 63.1% above its 20-day moving average and 48.8% above its 200-day moving average — the type of extension that typically follows an aggressive advance.
The Relative Strength Index reads 78.65, clearly in overbought range. The 20-day SMA has crossed above the 50-day SMA, representing a bullish short-term signal, though the 50-day continues below the 200-day following January’s death cross.
Important resistance levels appear at $5.00, with the 52-week peak zone around $5.23. Psychological price barriers like these frequently require consistent volume to break through decisively.
Analyst consensus stands at Hold, with a mean price target of $3.43 — considerably beneath present trading levels. Jefferies maintains a Buy recommendation with a $5.00 objective, while Morgan Stanley holds an Underweight rating with a $2.30 target.
Virgin Galactic’s upcoming earnings report is projected for August 5, 2026. The current EPS forecast shows a loss of 68 cents, representing progress from the prior year’s $1.47 deficit.
