Virgin Orbit (VORB:NSD), company founded by Richard Branson, has filed for Chapter 11 bankruptcy protection under the United States Bankruptcy Code. The decision followed the inability of the company to raise sufficient finances to continue operating. Dan Hart, the chief executive officer of Virgin Orbit, stated that the Chapter 11 procedure is the ideal way to find and finalise an efficient and value-maximizing sale.
The company has been battling to remain profitable and recently announced a headcount reduction of around 85% as part of a cost-cutting strategy after failing to secure significant investment.
Under bankruptcy protection, Virgin Orbit intends to continue the sale of its business, and Virgin Investments Ltd will offer $31.6 million in Debtor-in-Possession finance to fund its operations and sale process.
Following the announcement of layoffs, Virgin Orbit stock dropped by more than 43%, and it has fallen around 89% year-to-date.
Virgin Orbit Stock Forecast:
Based on the Virgin Orbit stock forecast from 3 analysts, the average analyst target price for Virgin Orbit Holdings Inc is USD 5.33 over the next 12 months. Virgin Orbit Holdings Inc’s average analyst rating is Sell.
Stock Target Advisor’s own stock analysis of Virgin Orbit stock is Bearish, which is based on 1 positive signals and 7 negative signals. At the last closing, Virgin Orbit stock price was USD 0.19. Virgin Orbit Holdings Inc’s stock price has changed by -63.79% over the past week, -85.52% over the past month and -97.26% over the last year.
Company Profile:
Virgin Orbit Holdings, Inc., a vertically integrated aerospace company, designs and develops commercial space orbital air pad launch solutions for small satellites across government, research, and education industries.
It offers launch services for national security and defense; rideshare satellite launch services; civil spaceports; and space solutions. The company is headquartered in Long Beach, California.
