Virgin Galactic Drops as Holders File to Sell 113 Million Shares

virgin galactic

(Bloomberg) — Virgin Galactic Holdings Inc. fell 4% in premarket trading Friday after shareholders filed to offer as much as 113 million of stock for sale.

The registration includes up to about 105 million outstanding shares of common stock and up to 8 million shares issuable upon the exercise of warrants that were issued in connection with a private placement, according to a filing with the Securities and Exchange Commission. It doesn’t necessarily indicate that a sale has begun, or will occur in the future.

Shares of the Las Cruces, New Mexico-based aerospace company have surged 46% since the end of October and speculators have been betting that the stock will fall. Short interest, a measure of bearish bets on the company, has risen to almost 32% of the shares available for trading, according to data from IHS Markit Ltd.

Last week, Virgin Galactic sank 17% after efforts to take tourists into space suffered a setback when a test flight was scrubbed shortly after takeoff because of a technical snag.