Virgin Galactic (NYSE:SPCE) stock is sliding lower on Thursday after the space exploration company announced plans for a reverse stock split.
According to Virgin Galactic, this reverse stock split is set to take place after markets close on Friday. The company says that this will see shares start trading on a split-adjusted basis when markets open on Monday.
The Virgin Galactic reverse stock split will have the company consolidate every 20 shares of SPCE stock into a single share. Virgin Galactic will maintain the SPCE ticker after the split but will switch to CUSIP number “92766K 403.”
Virgin Galactic says that no fractional shares will be issued as part of this reverse split. It also mentions that its number of authorized shares won’t decrease as a result of it.
The Reason for the SPCE Reverse Stock Split
Virgin Galactic is enacting this reverse stock split to boost the price of its shares. The stock’s prior closing price was 85 cents. That’s below the $1 minimum bid price required to remain on the New York Stock Exchange.
Virgin Galactic hopes that this reverse stock split will boost its price well above the $1 minimum. Doing so will reduce the risk of SPCE shares being delisted from the exchange.
SPCE stock is down 14.3% as of Thursday morning.
Investors will want to keep reading for more of the latest stock market news!
We have all of the biggest stock market stories worth reading about on Thursday! That includes more stock split news coming from Workhorse (NASDAQ:WKHS) and Williams-Sonoma (NYSE:WSM), as well as other market happenings. You can catch up on all of these matters at the following links!
More Stock Market News for Thursday
- Workhorse (WKHS) Stock Plunges 11% on 1-for-20 Reverse Stock Split
- Williams-Sonoma Stock Split: Mark Your Calendars for June 27
- Warren Buffett Keeps Doubling Down on Occidental Petroleum (OXY) Stock
On the date of publication, William White 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.
