Shares of Virgin Galactic (NYSE:SPCE) stock are plummeting lower after founder and billionaire Sir Richard Branson stated that he would no longer invest any further into the company. This comes after the space exploration company reported its earnings and revealed a cost-savings workforce reduction last month.
In an interview conducted by Financial Times, Branson said that his business conglomerate, Virgin Group, did not have as much money as it used to. At the same time, Branson believes that Virgin has enough capital to support business operations until 2026. That’s also the same year that the company’s Delta spacecraft is expected to enter the market.
“We don’t have the deepest pockets after Covid, and Virgin Galactic has got $1bn, or nearly,” said Branson. “It should, I believe, have sufficient funds to do its job on its own.”
Branson’s statement has conveyed fear among SPCE stock shareholders, as another one of his startups, Virgin Orbit, ceased operations earlier this year and filed for bankruptcy following a major failed mission.
As of now, Virgin Galactic has a major focus on its Delta spacecraft. The firm previously announced that it would pause flights of its commercial VSS Unity spacecraft in mid-2024 to focus on the Delta.
5 Investors Betting Big on SPCE Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the third quarter, 232 13F filers disclosed a stake in SPCE stock, a decline of 15 filers from the prior quarter. However, totals shares owned by these filers increased by a solid 24.97% to 130.61 million from 104.51 million. None of these filers own SPCE stock in their top 10 positions.
Hedge funds, who are included in 13F data, were even more bullish. Their total exposure to Virgin Galactic increased by a significant 55.89% to 16.67 million shares from 10.69 million shares.
With that in mind, let’s take a look at Virgin Galactic’s largest shareholders:
- State Street (NYSE:STT): 33.69 million shares. State Street acquired 12.15 million shares during Q3.
- Virgin Investments: 30.74 million shares. Virgin’s stake remained unchanged compared to the prior period.
- Vanguard: 30.16 million shares. Vanguard acquired 6.82 million shares during Q3.
- BlackRock (NYSE:BLK): 24.32 million shares. BlackRock acquired 2.77 million shares during Q3.
- Geode Capital Management: 5.83 million shares. Geode acquired 1.01 million shares during Q3.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
