Rocket Lab (NASDAQ:RKLB) Shares Down 1.3% - Time to Sell?

Key Points

• Rocket Lab's stock fell by 1.3%, closing at $44.24 after trading as low as $44.11, with trading volume significantly decreased to approximately 3.55 million shares.
• Bank of America raised its price target for Rocket Lab shares from $30 to $50, with a "buy" rating, while the stock currently has a consensus rating of "Moderate Buy" with a target price of $35.64.
• Despite a 32.1% year-over-year revenue growth to $122.57 million, Rocket Lab reported a loss with earnings per share of ($0.12), missing estimates and reflecting ongoing financial challenges.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares were down 1.3% during trading on Monday . The stock traded as low as $44.11 and last traded at $44.24. Approximately 3,551,578 shares traded hands during trading, a decline of 82% from the average daily volume of 19,942,809 shares. The stock had previously closed at $44.81.

Analyst Ratings Changes

Several research analysts recently commented on RKLB shares. Bank of America increased their target price on shares of Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Cantor Fitzgerald restated an "overweight" rating and set a $35.00 target price on shares of Rocket Lab in a report on Monday, July 14th. Stifel Nicolaus increased their price target on shares of Rocket Lab from $29.00 to $34.00 and gave the company a "buy" rating in a research note on Wednesday, May 28th. KeyCorp increased their price target on shares of Rocket Lab from $29.00 to $40.00 and gave the company an "overweight" rating in a research note on Wednesday, July 2nd. Finally, The Goldman Sachs Group initiated coverage on shares of Rocket Lab in a research note on Monday, June 30th. They issued a "neutral" rating and a $27.00 price target for the company. Five investment analysts have rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $35.64.

Rocket Lab Stock Performance

The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.72 and a current ratio of 2.08. The stock has a market cap of $20.72 billion, a P/E ratio of -112.20 and a beta of 2.17. The company's 50 day moving average price is $35.85 and its 200-day moving average price is $27.24.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its earnings results on Thursday, May 8th. The rocket manufacturer reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.02). Rocket Lab had a negative return on equity of 48.92% and a negative net margin of 44.32%. The firm had revenue of $122.57 million during the quarter, compared to the consensus estimate of $120.74 million. During the same quarter in the previous year, the company earned ($0.09) EPS. The business's revenue was up 32.1% compared to the same quarter last year. Equities analysts forecast that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insider Activity at Rocket Lab

In related news, insider Arjun Kampani sold 28,988 shares of the business's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $26.66, for a total value of $772,820.08. Following the transaction, the insider directly owned 540,618 shares of the company's stock, valued at approximately $14,412,875.88. The trade was a 5.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Merline Saintil sold 6,353 shares of the company's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $29.41, for a total transaction of $186,841.73. Following the sale, the director directly owned 425,922 shares in the company, valued at approximately $12,526,366.02. This trade represents a 1.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,130,995 shares of company stock valued at $29,686,039 over the last quarter. Corporate insiders own 11.90% of the company's stock.

Institutional Investors Weigh In On Rocket Lab

Institutional investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP purchased a new stake in shares of Rocket Lab in the fourth quarter worth about $17,261,000. SG Americas Securities LLC lifted its holdings in shares of Rocket Lab by 2,186.7% in the first quarter. SG Americas Securities LLC now owns 353,522 shares of the rocket manufacturer's stock worth $6,321,000 after buying an additional 338,062 shares in the last quarter. Cambridge Investment Research Advisors Inc. lifted its holdings in shares of Rocket Lab by 52.0% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 58,652 shares of the rocket manufacturer's stock worth $1,049,000 after buying an additional 20,076 shares in the last quarter. Smith Anglin Financial LLC increased its position in shares of Rocket Lab by 132.1% in the first quarter. Smith Anglin Financial LLC now owns 27,261 shares of the rocket manufacturer's stock worth $487,000 after purchasing an additional 15,515 shares during the last quarter. Finally, Rhumbline Advisers raised its stake in Rocket Lab by 9.6% in the first quarter. Rhumbline Advisers now owns 525,018 shares of the rocket manufacturer's stock valued at $9,387,000 after purchasing an additional 45,889 shares in the last quarter. 71.78% of the stock is owned by hedge funds and other institutional investors.

Rocket Lab Company Profile

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.

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