Why Virgin Galactic Stock Dropped 11% This Morning

On Friday, May 1, 2020, after close of trading, Virgin Galactic (NYSE: SPCE) filed an S-1 form with the Securities and Exchange Commission, advising that certain "selling stockholders" of the space tourism company intend to sell a combined 150.5 million shares of Virgin Galactic stock.

On Monday, May 4, the first trading day after the announcement, Virgin Galactic stock dropped as much as 11.4% before regaining some lost ground. As of 12:20 p.m. EDT, Virgin Galactic shares are down 4.2%.

Image source: Getty Images.

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Source Fool.com