## Virgin Galactic Considers Reverse Stock Split, Shares Drop
Virgin Galactic Holdings, Inc. (SPCE) shares are experiencing a decline following the company's announcement of a potential reverse stock split. The proposed split would range between 1-for-2 and 1-for-20, as determined by the Board of Directors. This news comes amidst a challenging period for the company, with its stock price down nearly 40% over the past month and trading at all-time lows.
The proposed reverse stock split will be voted on at the company's annual meeting of stockholders on June 12, 2024. This move is often seen as a way to increase the share price and make the stock more attractive to investors. However, it can also be seen as a sign of financial distress.
Adding to the company's challenges, a significant portion of its available shares are being sold short, currently at 25.52%. This means that investors are betting on the stock price to decline further.
Analysts remain cautious about Virgin Galactic's future prospects. While the average 12-month price target suggests potential upside, no analysts currently have positive ratings on the stock.
Despite the current challenges, Virgin Galactic remains a company with significant potential. The company is at the forefront of the commercial space tourism industry, and its success could revolutionize space travel. However, investors should be aware of the risks involved before making any investment decisions.