Virgin Galactic’s Unity spacecraft comes ashore on May 1, 2020 during a test glide flight.
Virgo 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 by his ARKX fund on Monday, the ETF’s shareholding was reduced 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 stock fell 7% in trading from its previous close of $ 22.46 per share and up 10% earlier in the day.
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 service companies Trimble, another Ark Invest fund PRNTand a variety of aerospace and defense companies including Kratos, L3Harris, Komatsu, Lockheed Martin, Thales, and Boeing. The largest pure leeway in ARKX is the satellite operator Iridium Communications.
Virgin Galactic’s stock last week put out its 2021 gainsafter more than doubling to highs above $ 60 per share in February. Losses accelerated over the past month Delays in testing program and commercial flightsas well as share Sales from Chairman Chamath Palihapitiya and then founder Richard Branson.