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Virgin Galactic Stock Down 11% Yesterday as Cathie Wood’s Space Exploration ETF Sells Almost All of Its SPCE Shares

Summary:
SPCE stock has now lost over 50% of its value since ARKX began trading back in the latter stages of March when it debuted on the market with a total stake of almost 672,000 shares of Virgin Galactic which was worth million at that time.Virgin Galactic Holdings Inc (NYSE: SPCE) shares took a hit in Wednesday’s trading after news broke that Ark Invest’s space exploration ETF sold almost its entire remaining stake in the American Spaceflight company, on a day the stock market mostly saw red. Ark Invest, founded and owned by Cathie Wood, also sold approximately 293,962 shares of Virgin Galactic from its ARKX autonomous technology and robotics fund in recent weeks, slashing its 2 million shares in late April to just 7,897 shares.Virgin Galactic on May 11 saw a share selling below to

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SPCE stock has now lost over 50% of its value since ARKX began trading back in the latter stages of March when it debuted on the market with a total stake of almost 672,000 shares of Virgin Galactic which was worth $20 million at that time.

Virgin Galactic Holdings Inc (NYSE: SPCE) shares took a hit in Wednesday’s trading after news broke that Ark Invest’s space exploration ETF sold almost its entire remaining stake in the American Spaceflight company, on a day the stock market mostly saw red. Ark Invest, founded and owned by Cathie Wood, also sold approximately 293,962 shares of Virgin Galactic from its ARKX autonomous technology and robotics fund in recent weeks, slashing its 2 million shares in late April to just 7,897 shares.

Virgin Galactic on May 11 saw a share selling below $15 to begin trading after it recorded a 20% loss, before steadily recovering throughout the day amid the heavy trading volume that day after its next spaceflight test as well as a broader path to beginning commercial flights was further delayed. Although repair works on an issue with its spacecraft are complete, the company revealed that they had identified an unexpected possible maintenance issue with carrier aircraft VMS Eve after test flights last week.

Virgin Galactic shares lost 11.3% in value in trading Wednesday to close at $16.08. The stock has now lost over 50% of its value since ARKX began trading back in the latter stages of March when it debuted on the market with a total stake of almost 672,000 shares of Virgin Galactic which was worth $20 million at that time.

Virgin Galactic’s stock began its downward spiral after it announced delays to its commercial flight and test program. The stock further saw red after the Founder Richard Branson and chairman Chamath Palihapitiya sold most of their shares in the company, with Branson offloading over $150 million worth of the company’s stock over three days. Palihapitiya, who oversaw the company’s 2019 public SPAC deal, also sold his remaining personal stake which was worth almost $213 million at the average selling prices.

Cathie wood’s Ark Invest sold almost half of its ARKX holding of Virgin Galactic on April 20, after the stock fell below $23 per share. Earlier this month, Virgin Galactic shares fell again after Blue Origin, Jeff Bezos space company, announced plans to auction seats of its first-ever crewed flight (New Shepard rocket) on July 20.

Market experts stated that Blue Origin’s plan could dethrone Virgin Galactic from having the first-mover advantage with UBS analyst Myles Walton stating that, Blue Origin made a bold statement on “positioning itself to potentially be the first suborbital space tourism company with a paying passenger.”

Ark Invest is now the smallest holding in the Space ETF with just a 0.02% representation whiles Virgin Galactic is also the smallest holding currently in the ARKQ Fund. Ark after it slashed ARKX’s slashed down to just 7,622 shares following its reported first-quarter results.

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Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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