Wall Street

Virgin Galactic shares drop 10% after the chairman gives up his stake

The billionaire investor “Chamath Palihapitiya” who is the chairman of Virgin Galactic and who put it up for trading in 2019, sold his remaining stake in the company this week, amounting to $213 million, sending Virgin Galactic shares to decline by 9.9% in trading on Friday, to close at $27.29, thus, the company’s share price plunged by more than 25% this week alone and lost about half of its value since early February when it recorded $62.80, which It was the highest value ever.

But in a broader view, stocks have remained in the positive field since the beginning of 2021 until now, recording an increase of 15%, and earnings per share have reached 165% since a year to the period when the stock reached its highest value, although Palihapitiya sold about 6.2 million Virgin Galactic shares on Tuesday and Wednesday at $213 million at an average sale price, it still owns about 15.8 million shares via Social Capital Hedosophia Holdings, Palihapitiya said he plans to redirect the money he raised from the stock sale into a massive investment he is making to tackle climate change.

In December, Palihapitiya sold 3.8 million shares of his stake in Virgin Galactic, which he said would help him manage his own cash while financing several new projects that will start in 2021.

His latest stock sale comes a week after Virgin Galactic revealed further delays in its spacecraft test program, and the company added that it does not expect to begin commercial flights until early 2022.

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