Virgin Galactic Holdings Inc (NYSE:SPCE) shares are trading higher on Monday. The move follows positive operational updates and sector-wide momentum.

The Nasdaq is up 0.63% while the S&P 500 has gained 0.41%.

Earnings Beat Estimates

On Mar. 31, the aerospace firm reported its fourth-quarter results. The company posted a loss of 98 cents per share. This figure beat analyst estimates of a $1.05 loss per share. However, revenue of $312,000 missed the $495,000 target.

SpaceShip Assembly Progress

CEO Michael Colglazier noted the first new SpaceShip is nearly complete. Ground testing will begin in April. The company has released limited Spaceflight Expeditions priced at $750,000 each.

"We continue to strategically manage our capital to support our planned ramp in cash flow," Colglazier said.

SpaceX IPO Buzz And M&A Chatter

Broader sector sentiment is also aiding the rally. Reports suggest SpaceX filed for a confidential initial public offering. The company may target a June debut at a $1.75 trillion valuation. This news sparked expectations of fresh capital across the space economy.

Additional upside stems from deal speculation involving Globalstar Inc (NYSE:GSAT). Reports suggest the company is in acquisition talks with Amazon.com Inc (NASDAQ:AMZN).

Technical Analysis

The stock is sitting closer to its 52-week low of $2.13 than its 52-week high of $6.64, which is consistent with a longer stretch of pressure despite today's bounce.

Over the last 12 months, SPCE is up 13.49%, a backward-looking gain that suggests rebounds have occurred even within a choppy downcycle.

A key longer-term caution flag is the death cross in January (Jan. 29), when the 50-day SMA fell below the 200-day SMA.

SPCE Stock Price Activity: Virgin Galactic shares were up 15.18% at $2.83 at the time of publication on Monday, according to Benzinga Pro data.

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