Virgin Galactic Sinks After Board Approves Reverse Stock Split

Virgin Galactic Holdings Inc. shares tumbled after the company’s board of directors agreed to a 1-for-20 reverse stock split aimed at maintaining the stock’s listing on the New York Stock Exchange.

The Richard Branson-founded space tourism company proposed the reverse split in April after its stock had fallen below $1 a share for the first time. Virgin Galactic had not determined the exact ratio for the split at the time, but expected that the ratio would be between 1-for-2 and 1-for-20.