Rocket Lab (NASDAQ:RKLB) Shares Down 3.1% on Analyst Downgrade

Key Points

• Rocket Lab shares fell 3.1% to $64.07 after Morgan Stanley cut its price target from $105 to $103, while maintaining an Overweight rating.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $99.10.
• In its latest quarter, Rocket Lab reported an adjusted loss of $0.12 per share, wider than analysts’ expected $0.07 loss, while revenue of $267.83 million topped estimates.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) fell 3.1% on Thursday after Morgan Stanley lowered their price target on the stock from $105.00 to $103.00. Morgan Stanley currently has an overweight rating on the stock. Rocket Lab traded as low as $63.69 and last traded at $64.07. 13,363,907 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 22,779,824 shares. The stock had previously closed at $66.15.

A number of other equities analysts have also recently commented on RKLB. Citizens Jmp cut their target price on shares of Rocket Lab from $130.00 to $90.00 and set a "market outperform" rating on the stock in a report on Friday, October 16th. Bank of America decreased their price target on shares of Rocket Lab from $115.00 to $110.00 and set a "buy" rating for the company in a research note on Monday, August 31st. KeyCorp reissued an "overweight" rating and set a $100.00 price objective on shares of Rocket Lab in a research report on Tuesday. TD Cowen restated a "buy" rating and issued a $90.00 price objective on shares of Rocket Lab in a research note on Thursday, October 15th. Finally, Needham & Company LLC reduced their target price on shares of Rocket Lab from $120.00 to $100.00 and set a "buy" rating for the company in a report on Wednesday. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Rocket Lab has a consensus rating of "Moderate Buy" and an average target price of $99.10.

Insiders Place Their Bets

In related news, Director Nina Armagno sold 10,926 shares of the stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $52.78, for a total transaction of $576,674.28. Following the completion of the sale, the director directly owned 100,496 shares of the company's stock, valued at $5,304,178.88. This trade represents a 9.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Arjun Kampani sold 7,754 shares of Rocket Lab stock in a transaction on Monday, August 24th. The shares were sold at an average price of $69.63, for a total transaction of $539,911.02. Following the completion of the transaction, the senior vice president owned 256,951 shares in the company, valued at approximately $17,891,498.13. This trade represents a 2.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 551,832 shares of company stock valued at $34,940,037. 8.40% of the stock is owned by company insiders.

Recent Rocket Lab Headlines

These are some of the RKLB headlines that stood out recently:

• Positive Sentiment: ARK Invest’s Cathie Wood added 18,086 Rocket Lab shares, worth about $1.2 million. The purchase may signal confidence in the company’s long-term prospects. Cathie Wood Buys More Rocket Lab Stock
• Neutral Sentiment: Rocket Lab’s shares have rebounded sharply even as several firms lowered price targets. Some analysts still see substantial upside, reflecting the tug-of-war between the company’s growth prospects and execution risks. Rocket Lab Rebound and Price-Target Cuts
• Negative Sentiment: Rocket Lab’s latest quarter featured a wider-than-expected loss: EPS was -$0.12 versus analysts’ expected -$0.07. Although revenue rose 73% year over year and backlog reached a record $3.57 billion, Neutron’s first launch has been delayed to 2027, extending execution and profitability concerns. Q3 Earnings and Neutron Delays

Hedge Funds Weigh In On Rocket Lab

Large investors have recently bought and sold shares of the company. Versant Capital Management Inc lifted its position in Rocket Lab by 5.1% in the second quarter. Versant Capital Management Inc now owns 2,049 shares of the rocket manufacturer's stock valued at $208,000 after purchasing an additional 100 shares during the period. Bartlett & CO. Wealth Management LLC lifted its holdings in shares of Rocket Lab by 7.1% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer's stock valued at $120,000 after buying an additional 124 shares during the period. Parvin Asset Management LLC lifted its holdings in shares of Rocket Lab by 4.0% in the 1st quarter. Parvin Asset Management LLC now owns 3,665 shares of the rocket manufacturer's stock valued at $235,000 after buying an additional 140 shares during the period. Wedmont Private Capital boosted its stake in shares of Rocket Lab by 3.5% in the third quarter. Wedmont Private Capital now owns 4,644 shares of the rocket manufacturer's stock valued at $318,000 after buying an additional 157 shares in the last quarter. Finally, DMC Group LLC boosted its stake in shares of Rocket Lab by 5.0% in the second quarter. DMC Group LLC now owns 3,553 shares of the rocket manufacturer's stock valued at $361,000 after buying an additional 170 shares in the last quarter. Hedge funds and other institutional investors own 71.78% of the company's stock.

Rocket Lab Price Performance

The stock has a 50 day moving average of $62.49 and a two-hundred day moving average of $78.56. The stock has a market capitalization of $38.34 billion, a PE ratio of -177.97 and a beta of 3.15.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its earnings results on Monday, November 9th. The rocket manufacturer reported ($0.12) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.05). Rocket Lab had a negative net margin of 25.73% and a negative return on equity of 5.79%. The business had revenue of $267.83 million during the quarter, compared to analyst estimates of $257.21 million. As a group, research analysts predict that Rocket Lab Corporation will post -0.20 earnings per share for the current fiscal year.

Rocket Lab Company Profile

Rocket Lab is a space company that provides launch services and spacecraft and satellite systems for commercial, civil, and national security customers. Founded in 2006 by Peter Beck, the company operates internationally, with headquarters in Long Beach, California, and launch operations in New Zealand and the United States. Its launch business centers on Electron, a small orbital rocket designed to carry satellites to space, and HASTE, a suborbital vehicle used for hypersonic test missions. Rocket Lab is also developing Neutron, a larger launch vehicle.

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