Why Virgin Galactic Stock Just Slid Another 5%
Shares of Virgin Galactic stock (NYSE: SPCE) tumbled 4% yesterday after the company priced a 23.6 million-share secondary stock offering at $19.50 -- actually falling below the price that new investors will be asked to pay to participate in the offering, which closes on Monday, Aug. 10. Worse, they're down again in Friday trading, too -- falling a further 5.3% through 3:05 p.m. EDT.
Why is this happening?
Yesterday's move from more than $20 a share to just $19.34 a share was more or less predictable. After all, why would investors want to buy Virgin Galactic stock today, when they know that other folks will be buying it a few days from now -- for less money? Still, some may be puzzled as to why Virgin's shares are continuing to fall, now that the secondary pricing news is out.
Source Fool.com
