Why Virgin Galactic Stock Is Taking Off Today

Virgin Galactic Holdings Inc SPCE is trading significantly higher Friday morning after the company announced that it received approval for a full commercial launch license from the Federal Aviation Administration.

The FAA updated Virgin Galactic's existing commercial space transportation operator license that the company has held since 2016, allowing it to fly customers to space. This is the first time the FAA has licensed a spaceline to fly customers.

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Virgin Galactic also announced that its test flight on May 22 performed well against all flight objectives after reviewing data from the flight.

“We’re incredibly pleased with the results of our most recent test flight, which achieved our stated flight test objectives. The flight performed flawlessly, and the results demonstrate the safety and elegance of our flight system. Today’s approval by the FAA of our full commercial launch license, in conjunction with the success of our May 22 test flight, give us confidence as we proceed toward our first fully crewed test flight this summer," said Michael Colglazier, CEO of Virgin Galactic.

Price Action: Virgin Galactic has traded as high as $62.80 and as low as $14.27 over a 52-week period.

At last check Friday, the stock was up 12.40% in premarket trading at $45.25.

Photo: courtesy of Virgin Galactic.