Virgin Galactic’s shares fall after Cathie Wood’s new Space ETF lost nearly half of its stake
Virgin Galactic’s Unity spacecraft comes ashore on May 1, 2020 during a test glide flight.
Virgin Galactic shares fell in trading Tuesday after Ark Invest’s space research ETF sold nearly half of its stake in the space tourism company.
Cathie Wood’s company sold 275,204 shares of Virgin Galactic from its ARKX fund on Monday, reducing the ETF’s holdings from 585,675 shares to 315,781 shares. Of the 39 ARKX holdings, Virgin Galactic was 19th largest, but is now 33rd, accounting for just over 1% of the fund’s weight.
Ark Invest also sold 315,600 shares of Virgin Galactic from its ARKQ Autonomous Technology and Robotics fund on Monday. This Ark ETF holds a larger stake in Virgin Galactic with 1.76 million shares. Together, ARKX and ARKQ hold $ 46.7 million in Virgin Galactic shares at yesterday’s closing price.
Virgin Galactic’s stock fell 6.6% in trading to close at $ 20.98 per share.
Wood’s new Space ETF only started trading late last month and many investors believed Virgin would be a top position for the fund as it was among the first publicly traded pure games in the industry. However, ARKX continues to focus its largest holdings in GPS-based services company Trimble, another PRNT fund from Ark Invest, and a variety of aerospace and defense companies including Kratos, L3Harris, Komatsu, Lockheed Martin, Thales and Boeing. The largest pure leeway in ARKX is satellite operator Iridium Communications.
Virgin Galactic stock wiped its 2021 gains last week after more than doubling to highs above $ 60 per share in February. Losses accelerated over the past month following delays in testing programs and commercial flights, as well as stock sales by Chairman Chamath Palihapitiya and then-founder Richard Branson.