Why Shares of Virgin Galactic Are Down Today
Shares of Virgin Galactic Holdings (NYSE: SPCE) traded down more than 3% as of noon EDT on Thursday. They had been down more than 5% earlier in the day, after the company priced its secondary stock offering. The offering adds more shares to the float and was priced at a discount to Wednesday's closing price, which often puts pressure on existing shares.
It's been a rough week for Virgin Galactic shareholders. The space tourism company on Aug. 3 announced a worse-than-expected quarterly loss and said it generated no revenue during the three-month period. The company also plans to sell at least 23.6 million shares of common stock to boost its working capital.
Image source: Virgin Galactic.
Source Fool.com
