Here's Why Boeing Is Pushing Virgin Galactic Stock Higher Today

Virgin Galactic Holdings Inc SPCE shares are trading higher Thursday after the company announced an agreement with a Boeing Co BA subsidiary.

Virgin Galactic will partner with Aurora Flight Sciences in the design and manufacturing of the company's next generation motherships. The mothership is the company's air launch carrier aircraft, which carries a spaceship to its release altitude.

Virgin Galactic has been working with Aurora for the past several months to develop design specifications, as well as other requirements for this long-term project. Following the agreement, Virgin said Aurora will be able to immediately begin devlopment. The first new mothership is expected to enter service in 2025.

"Supported by the scale and strength of Boeing, Aurora is the ideal manufacturing partner for us as we build our fleet to support 400 flights per year at Spaceport America," said Michael Colglazier, CEO of Virgin Galactic.

Virgin Galactic is an aerospace and space travel company, pioneering human spaceflight for private individuals and researchers.

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SPCE Price Action: Virgin Galactic has traded between $52.76 and $5.14 over a 52-week period.

The stock was up 4.34% at $6.73 at press time, according to data from Benzinga Pro.

Photo: courtesy of Virgin Galactic.