SPCE - Virgin Galactic's Free Fall Continues
2024-06-21 16:27:30 ET
Shares of Virgin Galactic (NYSE: SPCE) fell as much as 37.6% this week after the company completed a 1-for-20 reverse stock split this past weekend. But that didn't help the stock gain its footing and shares ended the week down 30.4%, according to data provided by S&P Global Market Intelligence .
The reverse stock split kept Virgin Galactic in compliance with the $1 minimum share price for the New York Stock Exchange. But it was hoped the move would also bring more investors in who may be interested in a stock trading closer to $10 than $0.50.
That wasn't the case, despite no real news from Virgin Galactic itself. The company is in a pretty quiet period while it's building the Delta class spacecraft and completing both ground and flight testing. But commercial operations aren't expected to start until at least mid-2026, so the company needs to lower its cash burn dramatically and save as much cost as possible.
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Virgin Galactic's Free Fall Continues