Virgin Galactic (SPCE) shares are trading lower after the company implemented a 1-for-20 reverse stock split, which took effect on Monday. This action, aimed at increasing the company’s stock price and meeting listing requirements, has triggered a sell-off among investors.
Yahoo Finance’s Market Domination takes a closer look at the space tourism company’s stock action.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Angel Smith
Video Transcript
Years of virgin galactic that continue to slide coming after the space companies.
Uh one for 20 reverse stock split taking effect today.
So we discussed this one, Julie.
Um obviously the the company founded by uh Richard Branson reverse Stock split, which we discussed the company looking to keep the stock price higher so it can meet certain requirements to stay listed.
Um And the issue here is, I think maybe investors understand that probably, you know, things aren’t going so great often if you have to make these kind of moves and you can see the reaction there.
Yeah, I I was looking at the sort of historical trajectory for the company.
Remember it came public in 2019, it was a DP, right, a special purpose acquisition company.
Um So came public through that kind of vehicle that was very, very popular sort of in the early days of the pandemic, the record price for it was 5591 in 2021.
Um So obviously, it’s come way down from there.
And as we just so on Friday, the, the board voted to authorize this one for 20 reverse stock split.
And today it became effective.
That’s why you’re saying the stock price is higher than it was um on Friday.
And as you say, if a stock trades below a buck for 30 days, it is then sometimes depending on the exchange eligible for delisting.
So that indeed is what this was aimed at stopping.
And as we talked about the other day too, the company has paused.
It’s uh it’s space flights because it’s trying to now develop a new plane.
Um And so investors aren’t gonna get anything from it for, for a little while in terms of news by Barons.
Reminds me that Barnes and Noble did a one for 101st so textbook sellers, space tourism companies.
It’s a trend.
