Today is Friday, June 23, 2023.
The Early Bird Index today is 56.64.
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Virgin Galactic Needs Money
Before Virgin Galactic (NYSE: SPCE) starts its commercial service this month, the company saw its stock drop by 13.53% in Thursday’s after-hours trading.
Details: The stock fell because Virgin Galactic said that it is selling up to $400 million of its shares from time to time, according to a filing on Thursday afternoon. The proceeds from the sales will be used for the development of its spaceship fleet and infrastructure to scale its commercial operations and for general corporate purposes.
Also: Virgin Galactic said that it previously raised $300 million in shares under a prior agreement from last August.
Background: After years of delays, Virgin Galactic finally announced last week that its commercial service will launch at the end of June and there will be monthly spaceflights. Shares jumped 43% on that announcement last week.
Stock Price: Shares of Virgin Galactic are up 52% this year, including a 7% increase in the last 30 days.
Final Thoughts: Obviously investors did not like the fact that Virgin Galactic is trying to raise more money. But, at least commercial service is set to begin shortly.
Notable Earnings Today: CarMax (NYSE: KMX), Apogee Enterprises (Nasdaq: APOG).
Notable IPOs Today: 60 Degrees Pharmaceuticals, Inc. Common Stock (Nasdaq: SXTP), iShares Copper and Metals Mining ETF (Nasdaq: ICOP), iShares Lithium Miners and Producers ETF (Nasdaq: ILIT), iShares Trust (NYSE Arca: IBDY).
Notable Equity Crowdfunding Campaigns Ending Today: Hidden Sands Brewing Company (StartEngine), Ubuntu Fine Art Gallery (Honeycomb), Denizens Cafe (Mainvest).
Notable Economic Events Today: Services PMI (9:45 a.m. ET), Manufacturing PMI (9:45 a.m. ET).
Smith & Wesson’s New Dividend Hike
Photo by danilo.alvesd / Unsplash
Shares of Smith & Wesson Brands (Nasdaq: SWBI) jumped 3.11% in after-hours trading on Thursday after the firearm manufacturer posted better-than-expected financial results.
Financials: Smith & Wesson reported earnings of $0.32 per share in the past quarter and revenue of $144.78 million; both were better than expected.
Details: The company announced that it will increase its quarterly dividend by 20%.
But: Net sales in the quarter decreased by 20%. The gross margin also dropped from 39.8% to 29%.
Stock Price: Smith & Wesson is up 26% this year, but down 7% in the last 30 days.
Final Thoughts: It is good for investors that the dividend increased, but the declining sales are a big problem.
Skillz Tumbles Due to Reverse Stock Split
Online video game company Skillz (NYSEL SKLZ) announced a 1-for-20 reverse stock split on Thursday, sending shares down by 16.35% in after-hours trading.
Definition: A reverse stock split is when companies consolidate the number of shares by merging shares together.
Details: In this case, every 20 shares of Skillz stock will be converted automatically into one share.
Final Thoughts: Skillz is up 17% this year, but needed to merge shares for compliance reasons. The stock trades at $0.60.
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Trends to Watch
Another Round: Ford Prepares New Round of Layoffs for U.S. Salaried Workers (The Wall Street Journal)
Better Than Expected: Wall Street ends higher as Powell wraps up testimony (Reuters)
Rivalry Continues: Bitcoin’s Ferocious ETF-Fueled Rally Puts Ether at Weakest Price Versus BTC in 2 Months (CoinDesk)
Work From Home: US Office Owners Get Dire Warning: Rebound Unlikely Before 2040 (Bloomberg)
Coming Soon: Moderna files for FDA approval of updated Covid vaccine for fall (CNBC)
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