TLDR
- Vertical Aerospace shares declined 2.5% to $5.60 on Friday with below-average trading volume
- Wall Street analysts hold six Buy ratings versus one Sell, with price targets reaching $14
- The company reported a larger-than-expected loss of $0.32 per share last quarter
- Institutional ownership stands at 81% with several hedge funds recently boosting positions
- Shareholders approved increased share authorization on January 21 to support future funding
Vertical Aerospace closed Friday’s session at $5.60, down 2.5% from the previous close of $5.75. The eVTOL developer hit an intraday low of $5.57 as trading volume came in 36% below average at 1.08 million shares.
The stock trades near key technical levels. Its 50-day moving average sits at $5.48, while the 200-day average is $5.36. With a market cap of $559 million and a beta of 1.21, the stock shows higher volatility compared to the broader market.
No fresh news catalysts emerged in the past two days. The decline appears driven by normal trading activity rather than company-specific headlines.
Wall Street Maintains Bullish Stance
Six analysts rate Vertical Aerospace as a Buy, with only one Sell recommendation. The consensus price target of $11.80 represents potential upside of over 100% from current levels.
D. Boral Capital maintains the highest target at $14. Needham recently lifted its target to $11 from $9, citing progress in battery production and aircraft testing.
William Blair initiated coverage in early January with an Outperform rating. The firm pointed to Vertical’s leading position in the European eVTOL market.
Cantor Fitzgerald keeps an Overweight rating on the shares. Weiss Ratings remains the sole bear with a Sell recommendation issued this week.
Earnings Miss Highlights Financial Pressure
Vertical reported November quarter results that missed expectations. The company posted a loss of $0.32 per share compared to the $0.23 consensus estimate.
Analysts project a full-year loss of approximately $3.95 per share. The company continues spending heavily to develop its electric aircraft technology.
A January 21 shareholder meeting approved a substantial increase in authorized share capital. While the move addresses funding needs, it raises potential dilution concerns.
The stock carries a price-to-earnings ratio of -0.11, reflecting its pre-revenue status. Cash burn remains a key focus for investors tracking the company’s path to commercialization.
Institutional Investors Increase Stakes
Hedge funds and institutional investors control roughly 81% of outstanding shares. Recent quarters have seen notable position changes.
Tudor Investment Corp expanded its holdings by 421% in the third quarter, now owning 166,535 shares valued at $864,000. Verition Fund Management increased its stake by 1,191% to 195,151 shares worth $1.01 million.
Several new investors entered positions. Farther Finance Advisors acquired shares worth $54,000 in the fourth quarter. Connective Capital Management and PharVision Advisers established third-quarter positions valued at $262,000 and $294,000 respectively.
The heavy institutional ownership suggests professional investors see long-term value despite near-term losses and funding requirements. Trading volatility remains elevated as the market weighs funding risks against bullish sell-side targets and broader eVTOL sector momentum.
The company’s Valo eVTOL concept targets 2028 certification, providing a timeline for potential commercial operations.
