Rocket Lab (NASDAQ:RKLB) Shares Down 1.8% - What's Next?

Key Points

• Rocket Lab's shares dropped 1.8% on Friday, closing at $47.04, with trading volume declining by 74% compared to the average daily trading volume.
• Analysts have issued positive ratings for Rocket Lab, with target prices ranging from $35.00 to $55.00, indicating a consensus rating of "Moderate Buy."
• Following the release of Q2 earnings, Rocket Lab reported a loss of ($0.13) per share, missing estimates but achieved a revenue of $144.50 million, a 35.9% increase from the previous year.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares dropped 1.8% on Friday . The stock traded as low as $46.02 and last traded at $47.04. Approximately 5,198,043 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 20,052,195 shares. The stock had previously closed at $47.91.

Wall Street Analyst Weigh In

RKLB has been the subject of several recent research reports. KeyCorp lifted their target price on shares of Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Needham & Company LLC reiterated a "buy" rating and issued a $55.00 target price (up previously from $45.00) on shares of Rocket Lab in a research note on Friday, August 8th. Cantor Fitzgerald lifted their target price on shares of Rocket Lab from $35.00 to $54.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Roth Capital raised their price objective on shares of Rocket Lab from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Wednesday, May 28th. Finally, Citigroup restated a "buy" rating and issued a $50.00 price objective (up from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $42.27.

Rocket Lab Trading Down 0.1%

The firm has a market capitalization of $22.94 billion, a P/E ratio of -106.13 and a beta of 2.17. The company has a quick ratio of 2.33, a current ratio of 2.67 and a debt-to-equity ratio of 0.60. The firm's 50-day simple moving average is $42.36 and its 200-day simple moving average is $29.31.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.06). The company had revenue of $144.50 million for the quarter, compared to the consensus estimate of $135.42 million. Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The company's revenue for the quarter was up 35.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.08) earnings per share. Rocket Lab has set its Q3 2025 guidance at EPS. Analysts anticipate that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insider Buying and Selling at Rocket Lab

In other Rocket Lab news, Director Matthew Ocko sold 820,000 shares of Rocket Lab stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $26.01, for a total transaction of $21,328,200.00. Following the transaction, the director directly owned 1,083,053 shares of the company's stock, valued at approximately $28,170,208.53. This trade represents a 43.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Arjun Kampani sold 5,194 shares of Rocket Lab stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $26.52, for a total transaction of $137,744.88. Following the transaction, the insider directly owned 535,424 shares in the company, valued at $14,199,444.48. This trade represents a 0.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,049,276 shares of company stock valued at $27,481,440. 11.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Versant Capital Management Inc increased its stake in shares of Rocket Lab by 118.1% in the first quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 860 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of Rocket Lab by 109.5% in the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 416 shares during the period. MassMutual Private Wealth & Trust FSB purchased a new position in shares of Rocket Lab in the first quarter worth $29,000. Farther Finance Advisors LLC increased its stake in shares of Rocket Lab by 181.1% in the first quarter. Farther Finance Advisors LLC now owns 1,903 shares of the rocket manufacturer's stock worth $35,000 after buying an additional 1,226 shares during the period. Finally, Spectrum Wealth Counsel LLC increased its stake in shares of Rocket Lab by 100.0% in the first quarter. Spectrum Wealth Counsel LLC now owns 2,000 shares of the rocket manufacturer's stock worth $36,000 after buying an additional 1,000 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.