Rocket Lab (NASDAQ:RKLB) Shares Gap Down - Should You Sell?

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $51.39, but opened at $50.05. Rocket Lab shares last traded at $50.10, with a volume of 4,524,356 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on RKLB. The Goldman Sachs Group started coverage on Rocket Lab in a research report on Monday, June 30th. They set a "neutral" rating and a $27.00 price objective for the company. Needham & Company LLC lifted their price objective on shares of Rocket Lab from $28.00 to $32.00 and gave the company a "buy" rating in a research report on Wednesday, May 28th. Citigroup reissued a "buy" rating and set a $50.00 target price (up from $33.00) on shares of Rocket Lab in a research note on Monday, July 14th. Stifel Nicolaus increased their target price on shares of Rocket Lab from $29.00 to $34.00 and gave the company a "buy" rating in a report on Wednesday, May 28th. Finally, Roth Capital boosted their price objective on shares of Rocket Lab from $25.00 to $35.00 and gave the stock a "buy" rating in a research report on Wednesday, May 28th. Four research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Rocket Lab has a consensus rating of "Moderate Buy" and an average target price of $34.10.

Rocket Lab Stock Down 6.5%

The stock has a 50 day moving average price of $31.48 and a 200 day moving average price of $25.84. The company has a quick ratio of 1.72, a current ratio of 2.08 and a debt-to-equity ratio of 0.97. The stock has a market capitalization of $22.17 billion, a price-to-earnings ratio of -120.78 and a beta of 2.15.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its earnings results on Thursday, May 8th. The rocket manufacturer reported ($0.12) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.02). Rocket Lab had a negative return on equity of 48.92% and a negative net margin of 44.32%. The business had revenue of $122.57 million for the quarter, compared to analyst estimates of $120.74 million. During the same period in the prior year, the business earned ($0.09) EPS. The company's revenue for the quarter was up 32.1% on a year-over-year basis. As a group, analysts forecast that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insider Activity at Rocket Lab

In other Rocket Lab news, Director Matthew Ocko sold 820,000 shares of Rocket Lab stock in a transaction on Friday, June 13th. The stock was sold at an average price of $26.01, for a total value of $21,328,200.00. Following the completion of the sale, the director 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Frank Klein sold 44,885 shares of the firm's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $26.66, for a total value of $1,196,634.10. Following the completion of the transaction, the insider directly owned 1,370,190 shares in the company, valued at $36,529,265.40. This trade represents a 3.17% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,130,995 shares of company stock worth $29,686,039 over the last ninety days. Corporate insiders own 11.90% of the company's stock.

Institutional Trading of Rocket Lab

Several institutional investors and hedge funds have recently made changes to their positions in the business. Sandy Spring Bank bought a new position in shares of Rocket Lab in the 4th quarter worth $26,000. ORG Partners LLC lifted its position in shares of Rocket Lab by 491.9% during the second quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock valued at $38,000 after buying an additional 910 shares during the last quarter. GAMMA Investing LLC grew its position in shares of Rocket Lab by 36.4% in 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 last quarter. Versant Capital Management Inc raised its stake in shares of Rocket Lab by 118.1% during the 1st quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock worth $28,000 after acquiring an additional 860 shares in the last quarter. Finally, MassMutual Private Wealth & Trust FSB acquired a new stake in Rocket Lab in the first quarter valued at approximately $29,000. 71.78% of the stock is currently owned by 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.

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