Rocket Lab (NASDAQ:RKLB) Trading Down 2.1% - Here's Why

Key Points

• Rocket Lab's stock fell by 2.1%, trading between $45.68 and $47.57, with volume decreasing 63% from its average.
• Multiple brokerages have issued positive ratings for Rocket Lab, with Stifel Nicolaus upgrading their target price to $55.00 and Citigroup revising theirs to $50.00.
• The company reported a revenue of $144.50 million for the quarter, exceeding expectations, although it missed EPS estimates with a loss of ($0.13).

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s stock price was down 2.1% on Tuesday . The stock traded as low as $45.68 and last traded at $47.57. Approximately 7,384,518 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 20,038,492 shares. The stock had previously closed at $48.60.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Bank of America raised their target price on Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Roth Capital reissued a "buy" rating on shares of Rocket Lab in a research note on Friday, August 29th. Needham & Company LLC reaffirmed a "buy" rating and issued a $55.00 target price on shares of Rocket Lab in a research note on Wednesday. KeyCorp lifted their price target on shares of Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Finally, The Goldman Sachs Group initiated coverage on Rocket Lab in a research note on Monday, June 30th. They set a "neutral" rating and a $27.00 price objective on the stock. One 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's stock. According to data from MarketBeat, Rocket Lab currently has a consensus rating of "Moderate Buy" and a consensus price target of $42.27.

Rocket Lab Trading Down 1.2%

The business's 50-day moving average is $43.72 and its two-hundred day moving average is $29.95. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.67 and a quick ratio of 2.33. The firm has a market cap of $20.61 billion, a P/E ratio of -95.53 and a beta of 2.17.

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

Insider Buying and Selling

In other news, Director Merline Saintil sold 6,353 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total value of $212,063.14. Following the sale, the director directly owned 419,569 shares of the company's stock, valued at approximately $14,005,213.22. This represents a 1.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Frank Klein sold 2,546 shares of Rocket Lab stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $30.00, for a total value of $76,380.00. Following the transaction, the insider owned 1,365,826 shares of the company's stock, valued at $40,974,780. The trade was a 0.19% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,040,446 shares of company stock worth $27,247,305. 11.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rocket Lab

A number of large investors have recently added to or reduced their stakes in RKLB. Truist Financial Corp raised its position in shares of Rocket Lab by 1.9% in the second quarter. Truist Financial Corp now owns 12,352 shares of the rocket manufacturer's stock valued at $442,000 after purchasing an additional 234 shares during the period. Parvin Asset Management LLC grew its position in shares of Rocket Lab by 7.2% in the second quarter. Parvin Asset Management LLC now owns 3,725 shares of the rocket manufacturer's stock valued at $133,000 after purchasing an additional 250 shares during the last quarter. GAMMA Investing LLC increased its position in Rocket Lab by 36.4% during the 2nd quarter. GAMMA Investing LLC now owns 1,518 shares of the rocket manufacturer's stock worth $54,000 after buying an additional 405 shares during the period. EverSource Wealth Advisors LLC raised its stake in Rocket Lab by 109.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after purchasing an additional 416 shares in the last quarter. Finally, Allworth Financial LP boosted its stake in shares of Rocket Lab by 4.0% in the first quarter. Allworth Financial LP now owns 11,888 shares of the rocket manufacturer's stock valued at $213,000 after buying an additional 458 shares during the period. Institutional investors own 71.78% of the company's stock.

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.