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Why Is VirnetX (VHC) Stock Down 63% Today?


  • VirnetX (VHC) stock is falling after paying a special dividend to shareholders.
  • It looks like investors are selling the stock after getting their payments.
  • The payment was $1 per share of VHC stock held.
VHC Stock - Why Is VirnetX (VHC) Stock Down 63% Today?

Source: Dmitry Lobanov/Shutterstock.com

VirnetX (NYSE:VHC) stock is falling hard on Tuesday, and it looks like this is connected to a special dividend offered by the company.

Today marks the payment of a special dividend for investors in VHC stock. That dividend has shareholders receiving $1 for each share of the company’s stock that they own. That company initially announced this dividend at the end of March.

Based on the chatter we’re seeing about VHC stock on social media, it appears shareholders are selling the company’s stock now that they have their payments. It’s also worth noting that some 463,000 shares of VHC have changed hands. While that’s below its daily average of 1.3 million shares, it’s still a lot of movement for pre-market trading.

The volatility surrounding VHC stock lately may be worsened by its low stock price. The company’s shares closed out trading on Monday at $1.52. With shares priced so low, it’s easy for investors to buy and sell large amounts of the stock. That can see the price rise and fall alongside those trades.

What This Means for VHC Stock

Considering the movement we’ve already seen this morning, it wouldn’t be surprising to see VHC stock continue to fall today. That would make sense after it saw a rally in the week ahead of this dividend. That includes Monday, with some 2 million shares changing hands. Investors will note that the dividend was payable to shareholders on record as of yesterday.

VHC stock is down 62.5% during pre-market trading on Tuesday!

Investors looking for more of the latest stock market news will want to keep reading!

InvestorPlace is home to all of the hottest stock market coverage for Tuesday! A few examples include why shares of Bellus Health (NASDAQ:BLU) and Glory Star New Media (NASDAQ:GSMG) stock are up, as well as the biggest pre-market stock movers this morning. You can read up on all of that below!

More Tuesday Stock Market News

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/why-is-virnetx-vhc-stock-down-63-today/.

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