Rocket Lab (NASDAQ:RKLB) Stock Price Down 2.8% - Here's Why

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).

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

Analyst Ratings Changes

RKLB has been the topic of several analyst reports. Cantor Fitzgerald raised their price target on shares of Rocket Lab from $35.00 to $54.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. Craig Hallum initiated coverage on shares of Rocket Lab in a research report on Monday, July 28th. They set a "hold" rating and a $51.00 price target on the stock. Needham & Company LLC restated a "buy" rating and set a $55.00 price target on shares of Rocket Lab in a research report on Wednesday, September 3rd. Roth Capital restated a "buy" rating on shares of Rocket Lab in a research report on Friday, August 29th. Finally, KeyCorp raised their price target on shares of Rocket Lab from $40.00 to $50.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Rocket Lab presently has a consensus rating of "Moderate Buy" and an average target price of $42.27.

Rocket Lab Trading Up 10.1%

The company has a debt-to-equity ratio of 0.60, a current ratio of 2.67 and a quick ratio of 2.33. The firm has a market capitalization of $25.57 billion, a PE ratio of -118.53 and a beta of 2.17. The company's fifty day simple moving average is $45.25 and its 200-day simple moving average is $30.94.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.06). The company had revenue of $144.50 million for the quarter, compared to analysts' expectations of $135.42 million. Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The business's revenue for the quarter was up 35.9% on a year-over-year basis. During the same period in the previous year, the business earned ($0.08) earnings per share. Rocket Lab has set its Q3 2025 guidance at EPS. As a group, sell-side analysts expect that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Rocket Lab

In other news, Director Merline Saintil sold 6,353 shares of the firm's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total value of $212,063.14. Following the transaction, the director directly owned 419,569 shares of the company's stock, valued at approximately $14,005,213.22. This trade represents a 1.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 11.90% of the company's stock.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently modified their holdings of RKLB. Versant Capital Management Inc lifted its stake in shares of Rocket Lab by 118.1% in the first quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 860 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Rocket Lab by 109.5% in the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 416 shares in the last quarter. MassMutual Private Wealth & Trust FSB purchased a new position in shares of Rocket Lab in the first quarter worth about $29,000. Farther Finance Advisors LLC lifted its stake in shares of Rocket Lab by 181.1% in the first quarter. Farther Finance Advisors LLC now owns 1,903 shares of the rocket manufacturer's stock worth $35,000 after buying an additional 1,226 shares in the last quarter. Finally, Spectrum Wealth Counsel LLC lifted its stake in shares of Rocket Lab by 100.0% in the first quarter. Spectrum Wealth Counsel LLC now owns 2,000 shares of the rocket manufacturer's stock worth $36,000 after buying an additional 1,000 shares in the last quarter. 71.78% of the stock is owned by hedge funds and other 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.