What happened: Virgin Galactic (SPCE) stock rose nearly 20% on Thursday ahead of SpaceX’s (SPCX) expected IPO on Friday.
What’s behind the move: Shares of the space travel company jumped in what appears to be a halo trade ahead of the highly anticipated SpaceX IPO, expected on Friday
Shares of outer space-related companies also jumped, including Rocket Lab (RKLB), which was up 4%. Both Rocket Lab and Virgin Galactic are rebounding after a volatile few weeks for the sector. Short sellers betting Virgin Galactic stock would fall were forced to cover positions in recent weeks as positive catalysts pushed shares higher, including progress toward restarting commercial flights later this year and a successful test flight.
There has also been some speculation that the company’s ticker, SPCE, is similar to the one under which SpaceX shares will trade, SPCX, causing some confusion among retail investors. The stock surged 200% between May 20 and early June. On Wednesday, it fell after the company completed a debt-for-equity swap, issuing new shares to repay debt, which diluted existing shareholders.