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What is happening to Virgin Galactic Holdings (SPCE) stock?

Shares of Virgin Galactic (SPCE) dropped 6.6% from the previous trading day’s closing price of $21.98 to $19.99 on Tuesday, April 20. This is the lowest closing level since November 17 of last year.

As the news spread that Katie Wood’s Ark Invest investment fund was cutting its stake in the space company, SPCE stock started declining. Shares dropped 10.44% in only two days.

It was announced on April 19 that Katie Wood’s firm sold 275,204 shares of Virgin Galactic through its Ark Space Exploration & Innovation (ARKX) fund. As a result, the ETF’s investment in the SPCE stock decreased by 46%, to 315,781 shares.

The ARKAutonomous Technology and Robotics Fund (ARKQ) sold 315,600 Virgin Galactic shares on April 20. However, this ETF continues to hold 1.76 million shares of the space company.

Many investors expected Virgin Galactic (SPCE), the first publicly traded company in the space industry, to be the main asset of the new Space ETF ARKX, which began trading on March 30. Despite its role in the market, its package was in 19th place in volume until Monday, when it dropped to 35th place out of 39 assets included in ETFs. 

 Trimble currently holds a 9,01% share in ARKX’s assets engaged in hardware, software, and service technologies. With a share of 6.02%, another fund, Ark Invest The 3D Printing ETF, comes in second place. There are also many aerospace and defence contractors, including Kratos, L3Harris, Komatsu, Lockheed Martin, Thales, and Boeing, with the largest space holding satellite operator Iridium Communications.

Katie Wood is not the first person to sell a large stake in Virgin Galactic. Richard Branson, the founder of the space company, sold shares for $150 million between April 12 and April 15. This is 2.4% of the SPCE stock. Virgin Galactic’s shares fell 13.57% at the end of the day on Thursday, April 15.

Virgin Galactic (SPCE) peaked at $ 59.41 per share on February 11, 2021. Since then, they have dropped 65%. This fall can be attributed to constant delays of the SpaceShipTwo Unity spacecraft test flight. Launch problems occurred in December 2020 after the test was postponed to February, but the test was never conducted again. This launch will determine when the SPCE stock can make commercial tourist flights into orbit.

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