Rocket Lab (NASDAQ:RKLB) Shares Down 2.8% - Time to Sell?

Key Points

• Rocket Lab shares fell 2.8% on Monday, trading as low as $65.44 after closing at $67.62, with volume below the recent average.
• Despite the dip, analyst sentiment remains constructive: the stock has an average “Moderate Buy” rating and an average price target of $110.18, with several firms recently raising targets.
• The company’s latest earnings showed revenue growth of 63.4% year over year to $200.35 million, while EPS met expectations at -$0.07; however, insiders have sold a significant amount of stock in recent months.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares traded down 2.8% during trading on Monday . The stock traded as low as $65.44 and last traded at $65.74. 17,759,278 shares changed hands during trading, a decline of 28% from the average session volume of 24,669,340 shares. The stock had previously closed at $67.62.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Piper Sandler initiated coverage on shares of Rocket Lab in a research note on Wednesday. They issued a "neutral" rating and a $83.00 price objective on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $96.00 price target on shares of Rocket Lab in a research report on Tuesday, June 30th. Wells Fargo & Company began coverage on Rocket Lab in a report on Wednesday, April 1st. They set an "equal weight" rating and a $60.00 price target for the company. Roth Capital lifted their price objective on Rocket Lab from $100.00 to $130.00 and gave the stock a "buy" rating in a research report on Monday, June 29th. Finally, Bank of America boosted their price objective on Rocket Lab from $105.00 to $115.00 and gave the company a "buy" rating in a research note on Tuesday, June 30th. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Rocket Lab currently has an average rating of "Moderate Buy" and an average price target of $110.18.

Rocket Lab Stock Down 2.8%

The company has a market cap of $38.05 billion, a price-to-earnings ratio of -205.44 and a beta of 2.54. The stock's 50-day moving average is $107.97 and its 200-day moving average is $87.27. The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, hitting analysts' consensus estimates of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The business had revenue of $200.35 million during the quarter, compared to analysts' expectations of $189.65 million. During the same period last year, the company posted ($0.12) earnings per share. The business's quarterly revenue was up 63.4% on a year-over-year basis. On average, analysts anticipate that Rocket Lab Corporation will post -0.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rocket Lab news, Director Alexander R. Slusky sold 40,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $123.60, for a total value of $4,944,000.00. Following the transaction, the director owned 334,675 shares in the company, valued at approximately $41,365,830. This represents a 10.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Arjun Kampani sold 88,000 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $107.98, for a total value of $9,502,240.00. Following the completion of the sale, the senior vice president directly owned 264,705 shares of the company's stock, valued at $28,582,845.90. This trade represents a 24.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,849,294 shares of company stock worth $362,816,208 over the last 90 days. 8.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rocket Lab

Hedge funds and other institutional investors have recently modified their holdings of the company. Versant Capital Management Inc grew its stake in Rocket Lab by 5.1% in the 2nd quarter. Versant Capital Management Inc now owns 2,049 shares of the rocket manufacturer's stock valued at $208,000 after buying an additional 100 shares in the last quarter. Sara Bay Financial raised its holdings in Rocket Lab by 0.7% during the 4th quarter. Sara Bay Financial now owns 15,905 shares of the rocket manufacturer's stock valued at $1,121,000 after acquiring an additional 117 shares during the period. ORG Partners LLC lifted its position in shares of Rocket Lab by 9.1% during the fourth quarter. ORG Partners LLC now owns 1,458 shares of the rocket manufacturer's stock worth $102,000 after acquiring an additional 121 shares in the last quarter. Bartlett & CO. Wealth Management LLC lifted its position in shares of Rocket Lab by 7.1% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer's stock worth $120,000 after acquiring an additional 124 shares in the last quarter. Finally, Sovereign Financial Group Inc. boosted its holdings in shares of Rocket Lab by 3.9% in the first quarter. Sovereign Financial Group Inc. now owns 3,320 shares of the rocket manufacturer's stock worth $213,000 after acquiring an additional 125 shares during the period. Institutional investors own 71.78% of the company's stock.

About Rocket Lab

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company's primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company's propulsion capabilities.

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