Richard Branson Liquidates $300 Million Worth Of Virgin Galactic Shares, Stock Price Dips

The shares of Virgin Galactic are down by roughly 2% today after the founder Richard Branson sold $300 million worth of his stake in the company.

Richard Branson sells $300 million worth of his shares in Virgin Galactic

The founder of Virgin Galactic, Sir Richard Branson, has sold some of his stake in the space company as he looks to fund other ventures. This latest development comes as another shock for the company, with its stock price dropping by roughly 2% today.

The founder sold 10.4 million shares of Virgin Galactic over the course of this week. He sold the stocks at varying prices, ranging from 25.75 to $34.39 per share. Overall, the shares he sold were worth roughly $300 million.

This latest development comes just days after Virgin Galactic’s stock was downgraded by Morgan Stanley. The stock was previously rated as an equal weight, but it is now rated as underweight. According to Morgan Stanley, the excitement around the company should decrease since it doesn’t have any scheduled flights for a while.

Despite Branson selling $300 million worth of his stake in Virgin Galactic, the parent company said the Virgin Group remains the largest single shareholder in Virgin Galactic. The stakes sold in the company would be used to invest in Branson’s other ventures, especially in leisure, holiday and travel businesses that are still affected by the impact of the COVID-19 pandemic.

Virgin Galactic’s Stock Price Dips Following Announcement

The shares of Virgin Galactic dropped by nearly 3% following the announcement that Branson has sold some of his stake in the company. It dropped below the $23 mark earlier today. However, the stock price is slowly recovering, and it is now trading close to the $26 region.

Virgin Galactic’s shares soared last month after the founder Branson went to space for the first time since the company was established. Branson became the first billionaire to make the trip, with Jeff Bezos following suit a few days later.