In today's video I look at fundamentals and recent news for Virgin Galactic (SPCE 3.77%). On Monday, July 12, 2021, Virgin Galactic announced plans to sell shares, which caused the stock price to drop. Below I share a few highlights from the video.
- A day after a successful launch, Virgin Galactic announced plans to sell $500 million worth of shares, intending to use cash proceeds for general corporate purposes such as developing its spaceship fleet and making other infrastructure improvements. Unfortunately, investors were not thrilled, and the stock price dropped over 15% on Monday, July 12, 2021.
- On its most recent earnings report, on March 30, 2021, Virgin Galactic reported roughly $616 million in cash and short-term investments and no debt.
- For the fiscal year of 2020, Virgin Galactic lost roughly $250 million in free cash flow. In theory, Virgin Galactic had plenty of cash in its balance sheet before the announcement that it will be selling shares.
*Stock prices used were the midday prices of July 12, 2021. The video was published on July 12, 2021.