Virgin Galactic slides 6% as investors look to sell 113 million shares

spaceshiptwo unity first free flight new mexico spaceport america runway landing virgin galactic may 2020
Virgin Galactic’s SpaceShipTwo “Unity” lands on a runway at Spaceport America in New Mexico on May 1, 2020.

  • Virgin Galactic fell as much as 6% on Friday after shareholders filed 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. Virgin Galactic won’t receive any of the proceeds from the sale. The filing doesn’t specify when the selling could begin.

The resale efforts come as Virgin Galactic shares sit about 120% higher year-to-date. 

Read more: 3 ETF executives break down the various ways to invest early in the global 5G boom as it grows to unlock $13.2 trillion in value by 2035

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 markets coverage from Markets Insider and Business Insider:

Tesla’s upcoming S&P 500 inclusion won’t make the index as expensive as some expect, Goldman Sachs says

US mortgage rates tumble to 15th record low of the year as housing market rallies

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.

SPCE

Read the original article on Business Insider

Virgin Galactic falls 17% after aborting key flight test as rocket engine fails to ignite

FILE PHOTO: Virgin Galactic (SPCE) logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) as the company begins public trading in New York, U.S., October 28, 2019. REUTERS/Brendan McDermid
Virgin Galactic (SPCE) logo is displayed on a screen on the floor of the NYSE in New York

  • Shares of Virgin Galactic tumbled as much as 17% to $26 on Monday after a test flight over the weekend failed to reach outer space due to rocket engine ignition issues.
  • “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.
  • Test pilots flew back to the Spaceport America launch site in New Mexico and landed safely. It’s unclear when Virgin Galactic’s next test flight will be. 
  • Visit Business Insider’s homepage for more stories.

Shares of Virgin Galactic tumbled as much as 17% on Monday after its first manned test flight on Saturday failed to reach outer space as planned. The rocket motor that is supposed to propel the craft into space failed to ignite, causing the test pilots to fly back to the Spaceport America launch site in New Mexico and land safely.

“During the test flight, the rocket motor did not fire due to the ignition sequence not completing,” the company said in a Monday statement. “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. ” 

Shares slumped to as low as $26 Monday morning after closing at $32 on Friday. The stock has been climbing steadily since the beginning of November and hit its highest level since late February last Monday, when the company signaled the critical test flight was almost ready to launch. 

Read more:Meet the investing chief whose early bets on Amazon and Alphabet helped return 146% to investors over 8 years – Here’s why he thinks Big Tech investors shouldn’t fear regulation

It’s unclear when Virgin Galactic’s next attempt at a powered flight to space will be. 

The spaceflight company tweeted on Saturday: “As we do with every test flight, we are evaluating all the data, including the root cause assessment of the computer communication loss.  We look forward to sharing information on our next flight window in the near future.” 

Read the original article on Business Insider