Virgin Galactic slides 6% as investors look to sell 113 million shares
- Virgin Galactic fell as much as 6% on Friday after
shareholdersfiled to sell up to 113 million shares.
- Shareholders aim to sell up to roughly 105 million outstanding shares of common stock and up to 8 million shares of common stock issuable upon the exercise of warrants, according to a Securities and Exchange Commission filing published Thursday.
- The filing doesn't specify when the selling could begin.
- The filing comes as shares sit roughly 120% higher year-to-date.
- Watch Virgin Galactic trade live here.
Virgin Galactic tumbled as much as 6% on Friday after shareholders moved to sell up to 113 million shares.
In a Securities and Exchange Commission filing published Thursday, stockholders announced efforts to resell up to about 105 million outstanding shares of common stock and up to 8 million shares of common stock issuable upon the exercise of warrants.
The resale efforts come as Virgin Galactic shares sit about 120% higher year-to-date.
Shares recently weathered stronger volatility as the company prepares for its first manned test flight out of Spaceport America in New Mexico. The stock rallied to a 9-month high on December 7 as investors bet on a successful test, but rocket engine issues postponed the flight and dragged shares as much as 17% lower on December 14.
"Virgin Galactic is now conducting post-flight analysis and can so far report that the onboard computer which monitors the propulsion system lost connection, triggering a fail-safe scenario that intentionally halted ignition of the rocket motor," the company said in a statement.
It's unclear when the test flight will be rescheduled. The initial plans to hold the test in November were already delayed once after rising COVID-19 cases in New Mexico squandered launch efforts.
Virgin Galactic closed at $25.50 on Thursday. The company has five "buy" ratings and four "hold" ratings from analysts, with a consensus price target of $24.56.
Now read more
A Wall Street investment chief says the bond market's smart money could be repeating an error that shortchanged investors after the 2008 crisis. He explains why history will repeat itself - and how his firm is taking advantage.
- A boomer moved back to Virginia after living in Florida for a decade. She says she'll 'never own another home' in the Sunshine State and loves the slower pace of life.
- Satellite images reveal Egypt has been quietly building a 16-foot wall on its border with Gaza
- Congressman presses Elon Musk to provide SpaceX satellite services for US defense forces in Taiwan, report says
- 5 Must try foods to try in Andhra Pradesh
- 10 Foods to avoid during fever for a swift recovery
- Corp affairs ministry probing Chinese cos linked to loan apps; investigations at advanced stages
- Meet the four astronauts who will steer India's Gaganyaan mission
- Tamil superstar Rajinikanth to collaborate with Sajid Nadiadwala