Virgin Galactic (NYSE: SPCE) stock plummeted to all-time lows in the intraday trading Monday after the company revealed plans for a reverse stock split.
Virgin Galactic (SPCE) has made public its consideration of a reverse stock split, which could happen at a ratio ranging from 1-for-2 to 1-for-20. This means that for every 2 to 20 shares an investor owns, they would get 1 share in return.
Virgin Galactic stated in an official document filed with the SEC that it has scheduled its 2024 annual meeting of stockholders for June 12 at 9:00 a.m. ET. During the event, shareholders will vote on various matters, including a proposed amendment to effect a reverse stock split.
This news comes as SPCE stock has been trading below $1 per share for the last four days. The New York Stock Exchange (NYSE) rules typically mandate that stocks maintain an average closing price of $1 per share to avoid the risk of delisting.
Virgin Galactic aims to proactively address this issue, by ensuring stock price doesn’t hover near the $1 delisting threshold for an extended period. Through a reverse split, the value of each share could increase to anywhere from $2 to $20.
Virgin Galactic shares have plunged nearly 40% over the past month and are trading at their lowest levels ever.
Virgin Galactic (NYSE: SPCE) Stock Movement
At the time of this report, SPCE stock stands at $0.78, reflecting an 8.95% decrease from the previous trading session. Its value has dropped by 23.58% this week. Trading activity has witnessed 6,174,413 (6.17 million) shares changing hands, surpassing the average daily volume of 10.46 million.
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