Rocket Lab (NASDAQ:RKLB) Stock Price Down 2.8% - Should You Sell?

Key Points

• Rocket Lab's stock price decreased by 2.8%, closing at $46.40 after reaching a low of $46.05 with trading volume down 79% from usual levels.
• Bank of America increased its price target for Rocket Lab from $30.00 to $50.00, while the consensus rating remains a Moderate Buy with an average target price of $42.27.
• In the recent quarter, Rocket Lab reported a revenue of $144.50 million, a 35.9% increase year-over-year, but missed EPS estimates with a loss of ($0.13).

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s stock price was down 2.8% on Tuesday . The company traded as low as $46.05 and last traded at $46.40. Approximately 4,163,599 shares changed hands during trading, a decline of 79% from the average daily volume of 20,063,336 shares. The stock had previously closed at $47.73.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on RKLB shares. Roth Capital restated a "buy" rating on shares of Rocket Lab in a report on Friday, August 29th. Bank of America upped their price target on shares of Rocket Lab from $30.00 to $50.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. The Goldman Sachs Group assumed coverage on shares of Rocket Lab in a research report on Monday, June 30th. They issued a "neutral" rating and a $27.00 price target for the company. Craig Hallum assumed coverage on shares of Rocket Lab in a research report on Monday, July 28th. They issued a "hold" rating and a $51.00 price target for the company. Finally, Citigroup restated a "buy" rating and issued a $50.00 price target (up previously from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $42.27.

Rocket Lab Trading Down 2.6%

The company's 50 day moving average price is $44.17 and its 200 day moving average price is $30.31. The company has a market cap of $22.29 billion, a price-to-earnings ratio of -103.28 and a beta of 2.17. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.33 and a current ratio of 2.67.

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

Insiders Place Their Bets

In related news, Director Matthew Ocko sold 820,000 shares of the firm's stock in a transaction 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 directly 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 transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Merline Saintil sold 6,353 shares of the firm's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total transaction of $212,063.14. Following the completion of the transaction, the director owned 419,569 shares in the company, valued at $14,005,213.22. The trade was a 1.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,032,706 shares of company stock worth $27,015,105 over the last quarter. 11.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its stake in Rocket Lab by 109.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after buying an additional 416 shares during the last quarter. Atlantic Union Bankshares Corp bought a new stake in Rocket Lab in the 2nd quarter valued at $36,000. Kilter Group LLC bought a new stake in Rocket Lab in the 2nd quarter valued at $37,000. ORG Partners LLC boosted its holdings in Rocket Lab by 491.9% in the 2nd quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock valued at $38,000 after purchasing an additional 910 shares during the period. Finally, Golden State Wealth Management LLC boosted its holdings in Rocket Lab by 3,250.0% in the 2nd quarter. Golden State Wealth Management LLC now owns 1,340 shares of the rocket manufacturer's stock valued at $48,000 after purchasing an additional 1,300 shares during the period. 71.78% of the stock is currently owned by institutional investors and hedge funds.

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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