Virgin Galactic Holdings shares are trading lower after the company announced it is considering a reverse stock split with a range between 1-for-2 and 1-for-20.
Portfolio Pulse from Benzinga Newsdesk
Virgin Galactic Holdings announced it is considering a reverse stock split, with options ranging from 1-for-2 to 1-for-20, leading to a decrease in its share price.
April 19, 2024 | 3:43 pm
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Virgin Galactic Holdings is contemplating a reverse stock split, which has resulted in a decline in its share price.
Reverse stock splits often lead to negative investor perception in the short term, as they can be seen as attempts to artificially boost the stock price or to meet exchange listing requirements. This announcement has directly impacted SPCE's share price, leading to a decrease. The range of the proposed split indicates significant potential changes in the stock structure, which can add to investor uncertainty.
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