Rocket Lab (NASDAQ:RKLB) Stock Price Down 1.6% - What's Next?

Key Points

• Rocket Lab shares fell 1.6% during Wednesday trading, with the stock last changing hands at $100.07 after trading as low as $97.62.
• The company is drawing attention after its $8 billion Iridium acquisition, which investors see as a step toward a vertically integrated space and satellite communications platform. Analysts have responded positively with several buy ratings and higher price targets.
• Recent results showed revenue growth of 63.4% year over year to $200.35 million, while Rocket Lab still posted a small loss and continued to face insider selling and a brief launch delay for Japan’s QPS mission.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) fell 1.6% during mid-day trading on Wednesday . The stock traded as low as $97.62 and last traded at $100.07. 21,328,689 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 25,102,785 shares. The stock had previously closed at $101.65.

Rocket Lab News Roundup

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Rocket Lab’s $8 billion Iridium acquisition is fueling a sharp re-rating story, with investors betting it will create a vertically integrated space and satellite communications platform. Rocket Lab enters satellite communications market with $8-billion deal
• Positive Sentiment: Analyst upgrades and higher price targets followed the deal, reinforcing the view that Rocket Lab’s competitive position and long-term revenue mix are improving. Rocket Lab Stock Jumps as Top Analyst Lifts Price Target, Sees a ‘Vertically Integrated Space Platform’
• Positive Sentiment: Rocket Lab’s expansion in mission software adds another growth lever and supports its strategy to offer more integrated space solutions. How Is Rocket Lab Expanding Through Space Mission Software?
• Neutral Sentiment: Rocket Lab paused a planned satellite launch for Japan’s QPS, which is a near-term operational delay but not necessarily a fundamental issue. RKLB Stock Slips Overnight: Rocket Lab Stands Down From 92nd Satellite Launch For Japan’s QPS

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on RKLB shares. Craig Hallum increased their price objective on shares of Rocket Lab from $98.00 to $120.00 and gave the stock a "buy" rating in a research note on Monday. Stifel Nicolaus set a $132.00 target price on Rocket Lab in a research report on Thursday, June 4th. New Street Research started coverage on Rocket Lab in a report on Wednesday, May 13th. They set a "buy" rating and a $150.00 target price on the stock. Needham & Company LLC reissued a "buy" rating and set a $120.00 price target on shares of Rocket Lab in a research report on Tuesday. Finally, Cantor Fitzgerald restated an "overweight" rating and issued a $96.00 price target on shares of Rocket Lab in a research note on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $108.24.

Rocket Lab Stock Down 1.6%

The stock has a market cap of $57.92 billion, a P/E ratio of -312.72 and a beta of 2.49. The firm has a 50 day simple moving average of $108.11 and a 200-day simple moving average of $85.71. The company has a quick ratio of 4.02, a current ratio of 4.47 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, hitting the consensus estimate of ($0.07). The company had revenue of $200.35 million during the quarter, compared to the consensus estimate of $189.65 million. Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The firm's revenue for the quarter was up 63.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.12) EPS. On average, equities research analysts forecast that Rocket Lab Corporation will post -0.29 earnings per share for the current fiscal year.

Insider Activity at Rocket Lab

In other news, SVP Arjun Kampani sold 88,000 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $107.98, for a total value of $9,502,240.00. Following the transaction, the senior vice president owned 264,705 shares of the company's stock, valued at approximately $28,582,845.90. This represents a 24.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Frank Klein sold 36,860 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $147.42, for a total value of $5,433,901.20. Following the transaction, the insider owned 1,006,987 shares in the company, valued at approximately $148,450,023.54. This trade represents a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 573,515 shares of company stock valued at $76,412,122. Insiders own 8.40% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Sara Bay Financial grew its stake in shares of Rocket Lab by 0.7% in the fourth 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 in the last quarter. ORG Partners LLC raised its stake in Rocket Lab by 9.1% in the 4th quarter. ORG Partners LLC now owns 1,458 shares of the rocket manufacturer's stock worth $102,000 after purchasing an additional 121 shares in the last quarter. Bartlett & CO. Wealth Management LLC boosted its holdings in Rocket Lab by 7.1% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer's stock valued at $120,000 after purchasing an additional 124 shares during the period. Sovereign Financial Group Inc. boosted its holdings in Rocket Lab by 3.9% in the 1st quarter. Sovereign Financial Group Inc. now owns 3,320 shares of the rocket manufacturer's stock valued at $213,000 after purchasing an additional 125 shares during the period. Finally, Traynor Capital Management Inc. grew its position in shares of Rocket Lab by 1.9% during the 4th quarter. Traynor Capital Management Inc. now owns 7,191 shares of the rocket manufacturer's stock worth $502,000 after purchasing an additional 133 shares in the last quarter. 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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