Rocket Lab (NASDAQ:RKLB) Shares Gap Down - Here's What Happened

Key Points

• Rocket Lab's shares opened at $52.00, down from a previous close of $54.04, and last traded at $48.79, with significant trading volume of 8,247,169 shares.
• Wall Street analysts generally hold a positive view on Rocket Lab, with six "buy" ratings and price targets ranging from $50.00 to $55.00, while the consensus target price stands at $42.27.
• In its most recent earnings report, Rocket Lab reported a loss of ($0.13) EPS, missing estimates, but achieved revenue of $144.50 million, exceeding analyst expectations.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $54.04, but opened at $52.00. Rocket Lab shares last traded at $48.79, with a volume of 8,247,169 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Stifel Nicolaus boosted their price target on Rocket Lab from $34.00 to $55.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Citigroup reissued a "buy" rating and set a $50.00 price target (up previously from $33.00) on shares of Rocket Lab in a report on Monday, July 14th. KeyCorp boosted their price target on Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Needham & Company LLC restated a "buy" rating and set a $55.00 price objective on shares of Rocket Lab in a research report on Wednesday, September 3rd. Finally, Cantor Fitzgerald boosted their price objective on Rocket Lab from $35.00 to $54.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Rocket Lab has a consensus rating of "Moderate Buy" and a consensus target price of $42.27.

Rocket Lab Trading Down 11.7%

The business has a 50 day moving average of $45.55 and a two-hundred day moving average of $31.32. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.33 and a current ratio of 2.67. The firm has a market capitalization of $22.88 billion, a price-to-earnings ratio of -105.97 and a beta of 2.17.

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

Insider Activity at Rocket Lab

In other news, Director Merline Saintil sold 6,353 shares of the stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $33.38, for a total value of $212,063.14. Following the completion of the sale, the director directly owned 419,569 shares of the company's stock, valued at $14,005,213.22. This represents a 1.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 11.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rocket Lab

Institutional investors have recently modified their holdings of the business. Sender Co & Partners Inc. bought a new position in shares of Rocket Lab in the first quarter valued at approximately $621,000. Royal Bank of Canada grew its holdings in Rocket Lab by 6.4% during the first quarter. Royal Bank of Canada now owns 2,128,536 shares of the rocket manufacturer's stock valued at $38,057,000 after purchasing an additional 128,907 shares during the period. Wellington Management Group LLP bought a new position in Rocket Lab during the fourth quarter valued at $17,261,000. SG Americas Securities LLC grew its holdings in Rocket Lab by 2,186.7% during the first quarter. SG Americas Securities LLC now owns 353,522 shares of the rocket manufacturer's stock valued at $6,321,000 after purchasing an additional 338,062 shares during the period. Finally, Cambridge Investment Research Advisors Inc. grew its holdings in Rocket Lab by 52.0% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 58,652 shares of the rocket manufacturer's stock valued at $1,049,000 after purchasing an additional 20,076 shares during the period. 71.78% of the stock is owned by institutional investors.

About Rocket Lab

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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