ORANGE COUNTY, Calif. - Virgin Galactic Holdings, Inc. (NYSE: NYSE:SPCE), a company specializing in aerospace and space travel, has received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with the exchange's minimum price criteria. The notice, dated May 29, 2024, indicated that Virgin Galactic's average closing share price was below the required $1.00 over a 30-day trading period.
In response to the notice, Virgin Galactic has expressed its intention to regain compliance with NYSE's continued listing standards. The company is seeking shareholder approval to execute a reverse stock split, as detailed in a proxy statement filed with the U.S. Securities and Exchange Commission on April 29, 2024. The vote on this matter is scheduled for the upcoming annual meeting of stockholders on June 12, 2024.
NYSE rules grant Virgin Galactic a six-month period from the receipt of the notice to remedy the non-compliance. During this timeframe, Virgin Galactic's common stock will remain listed and continue to trade on the NYSE.
InvestingPro Insights
Virgin Galactic Holdings, Inc. (NYSE: SPCE) has been navigating turbulent skies with its share price fluctuating significantly. According to recent data, the company's market capitalization stands at $391.33 million, reflecting the challenges faced in the aerospace sector. Despite the recent notice from the NYSE regarding its share price, the company has shown a significant return over the last week, with a 14.09% price total return.
InvestingPro Tips for Virgin Galactic indicate a mixed financial position. On the positive side, the company holds more cash than debt on its balance sheet, suggesting a degree of financial stability. Additionally, liquid assets exceed short-term obligations, providing some flexibility in managing its finances. On the other hand, analysts have concerns, anticipating a sales decline in the current year and not expecting the company to turn a profit this year. Virgin Galactic is also experiencing weak gross profit margins, which could impact its ability to achieve profitable growth in the near term.
For investors looking to delve deeper into Virgin Galactic's financial health and future prospects, there are 17 additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/SPCE. These insights may help shareholders and potential investors understand the risks and opportunities associated with the stock.
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