Virgin Galactic Holdings Inc (NYSE:SPCE) shares are trading lower by 4.5% to $0.88 during Tuesday's session amid recent, ongoing volatility. The company recently announced it is contemplating a reverse stock split, potentially at a ratio between 1-for-2 and 1-for-20, as disclosed in an SEC filing.
This proposal is set to be voted on at the company's upcoming annual meeting on June 12. SPCE shares have seen a significant decline of roughly 35% over the past month, reaching all-time lows.
Additionally, approximately 25% of available Virgin Galactic shares are currently being sold short. Short interest refers to the number of shares that have been sold short by investors betting on the stock's decline.
Should I Sell My SPCE Stock?
When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.
Shares of Virgin Galactic have decreased by 72.22% in the past year. An investor who bought shares of Virgin Galactic at the beginning of the year would take a loss of $1.48 per share if they sold it today. The stock has fallen 36.24% over the past month, meaning an investor who bought shares on Mar. 1 would see a capital loss of $0.72.
Virgin Galactic shares have an all-time high of $55.91, representing 6208.96% upside from current levels.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Virgin Galactic stock currently has an RSI of 42.71, indicating neutral conditions.
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SPCE has a 52-week high of $6.17 and a 52-week low of $0.70.