Virgin Galactic (NYSE:SPCE) stock is trending on social media, and its shares are down 18% today. The downturn comes after the company announced that it would sell $400 million worth of stock ahead of the launch of its first commercial space mission later this month.
More About the Capital Raise
In an SEC filing yesterday, the spaceship operator reported that it would use the $400 million to enhance “its spaceship fleet and infrastructure… and for general corporate purposes.” The firm noted that it intends to expand its commercial offerings.
The company recently completed an “at the market” capital raise of $300 million.
Virgin Galactic’s First Commercial Mission
Virgin’s initial commercial mission is slated to launch between June 27 and June 30. Comprised of “three crew members from the Italian Air Force and the National Research Council of Italy,” the crew is supposed “to conduct microgravity research.”
The launch’s final test flight was completed back in May.
Additional Information About Virgin Galactic and SPCE Stock
As of the end of last quarter, SPCE had $833.6 million of cash and $476.6 million of debt.
The company intends to carry out another commercial flight, Galactic 02, toward the beginning of August. Moreover: “Additional space missions are due to follow each month thereafter.”
The percentage of SPCE shares traded by short sellers outside of the major exchanges dropped to 55.94% on June 22, Fintel reported. That’s down from 60.54% on June 21 and 56.8.9% on June 20.
All told, Fintel gives Virgin Galactic a “Short Squeeze Score” of 72.76 out of 100. That ranks SPCE stock at 832 out of the 3,737 names for which the platform provides the metric.
SPCE stock has dropped 13% in the last month heading into today, and despite a rise of 18% in the past six months, it has still dropped 33% in the last year.
On the date of publication, Larry Ramer did not hold (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.