Rocket Lab (NASDAQ:RKLB) Stock Price Down 1.8% - Time to Sell?

Key Points

• Rocket Lab's stock price decreased by 1.8%, trading as low as $43.67, with a significant drop in trading volume, reflecting a concern among investors.
• Several analysts have issued new price targets, with Wells Fargo reducing its target from $21.00 to $18.00, while Bank of America raised its target to $50.00, indicating mixed sentiment among analysts.
• Despite the recent challenges, Rocket Lab reported a quarterly revenue increase of 32.1% year-over-year, although it missed EPS estimates, highlighting both growth potential and ongoing profitability issues.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) fell 1.8% during trading on Wednesday . The company traded as low as $43.67 and last traded at $43.96. 2,759,538 shares changed hands during trading, a decline of 86% from the average session volume of 19,821,305 shares. The stock had previously closed at $44.75.

Analysts Set New Price Targets

RKLB has been the topic of several recent analyst reports. Wells Fargo & Company decreased their target price on shares of Rocket Lab from $21.00 to $18.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 8th. Bank of America increased their target price on shares of Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Craig Hallum initiated coverage on shares of Rocket Lab in a research note on Monday, July 28th. They set a "hold" rating and a $51.00 target price on the stock. Citigroup reissued a "buy" rating and issued a $50.00 price objective (up from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. Finally, KeyCorp increased their target price on shares of Rocket Lab from $29.00 to $40.00 and gave the company an "overweight" rating in a research report on Wednesday, July 2nd. Five analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Rocket Lab currently has a consensus rating of "Moderate Buy" and an average target price of $37.55.

Rocket Lab Stock Down 0.8%

The company has a market capitalization of $20.48 billion, a price-to-earnings ratio of -110.92 and a beta of 2.17. The stock's fifty day simple moving average is $36.55 and its two-hundred day simple moving average is $27.50. The company has a debt-to-equity ratio of 0.97, a current ratio of 2.08 and a quick ratio of 1.72.

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

Insider Activity at Rocket Lab

In related news, insider Arjun Kampani sold 5,194 shares of the stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $30.00, for a total value of $155,820.00. Following the transaction, the insider owned 530,230 shares in the company, valued at approximately $15,906,900. This represents a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Matthew Ocko sold 820,000 shares of the stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $26.01, for a total value of $21,328,200.00. Following the transaction, the director owned 1,083,053 shares in the company, valued at approximately $28,170,208.53. This trade represents a 43.09% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,130,995 shares of company stock valued at $29,686,039 over the last ninety days. 11.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in RKLB. Wellington Management Group LLP bought a new position in shares of Rocket Lab during the 4th quarter valued at about $17,261,000. SG Americas Securities LLC grew its holdings in Rocket Lab by 2,186.7% in the 1st quarter. SG Americas Securities LLC now owns 353,522 shares of the rocket manufacturer's stock valued at $6,321,000 after buying an additional 338,062 shares in the last quarter. Cambridge Investment Research Advisors Inc. grew its holdings in Rocket Lab by 52.0% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 58,652 shares of the rocket manufacturer's stock valued at $1,049,000 after buying an additional 20,076 shares in the last quarter. Smith Anglin Financial LLC grew its holdings in Rocket Lab by 132.1% in the 1st quarter. Smith Anglin Financial LLC now owns 27,261 shares of the rocket manufacturer's stock valued at $487,000 after buying an additional 15,515 shares in the last quarter. Finally, Rhumbline Advisers grew its holdings in shares of Rocket Lab by 9.6% during the 1st quarter. Rhumbline Advisers now owns 525,018 shares of the rocket manufacturer's stock worth $9,387,000 after purchasing an additional 45,889 shares in the last quarter. 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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