Rocket Lab (NASDAQ:RKLB) Shares Down 4.5% - Time to Sell?

Key Points

• Shares down 4.5% — Rocket Lab fell to about $78.81 intraday (low $78.43) on Friday with ~16.2 million shares traded, about 28% below average and down from a prior close of $82.51.
• Analyst backdrop is broadly positive with a consensus Moderate Buy and an average price target of $83.31, while several firms have raised targets (Bank of America to $120, Morgan Stanley and Stifel to $105).
• Notable insider selling occurred recently (CEO Peter Beck and Director Merline Saintil among sellers), with insiders offloading 233,449 shares (~$16.5M) last quarter, even as institutional investors own about 71.8% of the company (Vanguard ~47.4M shares).

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares were down 4.5% during mid-day trading on Friday . The company traded as low as $78.43 and last traded at $78.81. Approximately 16,211,572 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 22,527,662 shares. The stock had previously closed at $82.51.

Wall Street Analyst Weigh In

Several analysts recently issued reports on RKLB shares. Stifel Nicolaus reiterated a "buy" rating and set a $105.00 price objective (up from $90.00) on shares of Rocket Lab in a report on Monday, April 20th. Morgan Stanley upgraded Rocket Lab from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $67.00 to $105.00 in a report on Friday, January 16th. Bank of America raised their target price on Rocket Lab from $60.00 to $120.00 and gave the company a "buy" rating in a report on Tuesday, January 20th. Wall Street Zen upgraded Rocket Lab from a "sell" rating to a "hold" rating in a report on Sunday, February 8th. Finally, Zacks Research lowered Rocket Lab from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 10th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $83.31.

Rocket Lab Trading Down 4.5%

The company has a market capitalization of $44.88 billion, a price-to-earnings ratio of -212.99 and a beta of 2.20. The company has a 50-day moving average price of $72.26 and a 200-day moving average price of $68.20. The company has a quick ratio of 3.61, a current ratio of 4.08 and a debt-to-equity ratio of 0.10.

Insider Buying and Selling at Rocket Lab

In related news, Director Merline Saintil sold 18,126 shares of Rocket Lab stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $75.04, for a total transaction of $1,360,175.04. Following the sale, the director directly owned 261,903 shares of the company's stock, valued at $19,653,201.12. This trade represents a 6.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Peter Beck sold 18,857 shares of the firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $69.59, for a total transaction of $1,312,258.63. Following the transaction, the chief executive officer owned 884,085 shares of the company's stock, valued at approximately $61,523,475.15. This represents a 2.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 233,449 shares of company stock valued at $16,487,233 over the last quarter. Company insiders own 8.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RKLB. Arizona State Retirement System grew its holdings in shares of Rocket Lab by 13.6% in the 3rd quarter. Arizona State Retirement System now owns 127,794 shares of the rocket manufacturer's stock valued at $6,123,000 after buying an additional 15,307 shares during the period. Firsthand Capital Management Inc. grew its stake in shares of Rocket Lab by 40.0% in the third quarter. Firsthand Capital Management Inc. now owns 70,000 shares of the rocket manufacturer's stock valued at $3,354,000 after buying an additional 20,000 shares in the last quarter. Swiss National Bank grew its stake in shares of Rocket Lab by 67.7% in the third quarter. Swiss National Bank now owns 1,243,630 shares of the rocket manufacturer's stock valued at $59,582,000 after buying an additional 501,830 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock valued at $3,308,033,000 after purchasing an additional 5,610,469 shares during the period. Finally, State of New Jersey Common Pension Fund D raised its holdings in shares of Rocket Lab by 14.4% in the 3rd quarter. State of New Jersey Common Pension Fund D now owns 153,106 shares of the rocket manufacturer's stock valued at $7,335,000 after purchasing an additional 19,304 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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