Virgin Galactic Stock: Shares Tank On Tail Of Richard Branson’s Successful Space Flight

Shares of Virgin Galactic (SPCE) plunged over 13% Monday after the company announced it was selling up to $500 million in common stock following a successful spaceflight with founder Richard Branson.

The space company filed the stock sale offering with the Securities and Exchange Commission early Monday, sending its share price sliding about 10% with the news, CNBC noted.

Shares of Virgin Galactic were trading at $52.66 in premarket trading on Monday, up $3.46, or 7.03%. Trading of Virgin Galactic shares was briefly paused on Monday morning as a result of the volatility.

On Sunday, Virgin Galactic launched a full crew from New Mexico to the edge of space, 53.2 miles above sea level. The company plans to begin selling seats onboard its spacecraft VSS Unity for the one-hour flight to space in 2022.

Take-off! The #Unity22 crew including @RichardBranson leave Spaceport America, New Mexico for #VirginGalactic’s first fully-crewed spaceflight. pic.twitter.com/RxGYp90nu8
— Virgin Galactic (@virgingalactic) July 11, 2021

Branson said there have been over 600 tickets sold for upcoming flights onboard the Virgin Galactic spacecraft, with the price of a seat on the VSS Unity reaching about $250,000.

“We view Branson’s achievement as a massive marketing coup for Virgin Galactic that will be impossible for the public to ignore,” Canaccord Genuity equity analyst Ken Herbert told clients in a research note. Canaccord Genuity reiterated a "buy" rating on Virgin Galactic at a price target of $35.

Virgin Galactic had seen its price of shares double in 2021 in anticipation of the commercial space flights. On May 11, shares of Virgin Galactic were trading at $14.27.

Virgin Galactic is also offering two free seats as part of a giveaway promotion with fundraising company Omaze on “one of the first commercial Virgin Galactic spaceflights” slated for early next year.

Congratulations to @richardbranson and @virgingalactic for dreaming so big! Now it’s your turn…

You could make history and win two seats on one of the FIRST Virgin Galactic commercial spaceflights!

ENTER NOW: https://t.co/WmZo2aixYb #VirginGalactic #RichardBranson #Omaze pic.twitter.com/9qLGKctmnw
— Omaze (@omaze) July 11, 2021

Branson, 70, is the first billionaire to travel into space, beating out Blue Origin's founder Jeff Bezos and Space X founder Elon Musk. Bezos will fly to space on July 20 onboard Blue Origin’s New Shepard.

Shares of Virgin Galactic were trading at $42.43 as of 12:07 p.m. ET on Monday, down $6.77, or 13.76%.