Why Virgin Galactic Stock Is Crashing Down To Earth Premarket Today
Portfolio Pulse from Shanthi Rexaline
Virgin Galactic's stock fell sharply in premarket trading on Friday after filing a prospectus for a $400 million at-the-market common stock offering. The company plans to use the proceeds for spaceship fleet development and scaling commercial operations. KeyBanc analyst Michael Leshock sees the offering as good timing but estimates it will be 20-25% dilutive to shares.
June 23, 2023 | 10:13 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Virgin Galactic's stock fell after filing a $400 million stock offering, which KeyBanc analyst Michael Leshock sees as good timing but estimates it will be 20-25% dilutive to shares.
The stock offering will dilute existing shares by 20-25%, which is a significant amount and likely to negatively impact the stock price in the short term. However, the analyst sees the offering as good timing due to recent strength in the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100