Virgin Galactic Stock Tumbles for Second Session After Reverse Stock Split
Billionaire Richard Branson's $Virgin Galactic(SPCE.US$ fell more than 15% intraday Tuesday, dropping sharply for the second straight session following the space-tourism firm's recent 20-to-1 reverse stock split.
SPCE – which shed 14.6% on Monday – gave back as much as another 17.4% to a $9.67 intraday low Tuesday following the reverse split.
Virgin Galactic executed the split Monday to comply with the Nasdaq's $1-per-share minimum-pricing rules.
Branson, who has long had an interest in hot-air balloons and aviation, founded the company in 2004 to offer space flights to the public. He also founded Virgin Atlantic Airways.
But while Branson's Virgin Group maintains a significant stake in Virgin Galactic, Branson himself reportedly sold more than $1 billion of his shares over the years.
He also announced late last year that he wouldn't invest further in the company, noting that Virgin Galactic already had more than $1 billion in cash on hand.
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