Rocket Lab (NASDAQ:RKLB) Stock Price Down 3.3% - Here's What Happened

Key Points

• Shares traded down 3.3% in mid-day trading to $85.68 (from a prior close of $88.57) on lighter volume—15.67M shares vs. an average session volume of 26.82M.
• Analysts have a consensus rating of “Moderate Buy” with an average price target of $72.92, and ratings mix includes 2 Strong Buy, 7 Buy, 5 Hold and 1 Sell.
• Insiders have been net sellers recently—including CEO and CFO sales—with 4.31M shares sold (~$271.9M) over the last quarter; insiders now own 11.90% of the stock.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s share price traded down 3.3% during mid-day trading on Thursday . The company traded as low as $83.00 and last traded at $85.68. 15,668,305 shares were traded during mid-day trading, a decline of 42% from the average session volume of 26,821,977 shares. The stock had previously closed at $88.57.

Analyst Ratings Changes

A number of equities analysts recently weighed in on RKLB shares. TD Cowen reaffirmed a "buy" rating on shares of Rocket Lab in a research report on Thursday, January 22nd. Zacks Research upgraded Rocket Lab from a "hold" rating to a "strong-buy" rating in a research report on Monday, January 12th. The Goldman Sachs Group boosted their price objective on Rocket Lab from $47.00 to $69.00 and gave the company a "neutral" rating in a report on Tuesday, January 20th. Robert W. Baird raised Rocket Lab to a "strong-buy" rating in a research note on Thursday, October 16th. Finally, Wall Street Zen upgraded Rocket Lab from a "sell" rating to a "hold" rating in a report on Saturday, January 3rd. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Rocket Lab presently has an average rating of "Moderate Buy" and a consensus price target of $72.92.

Rocket Lab Stock Down 3.3%

The firm has a 50-day moving average price of $68.19 and a two-hundred day moving average price of $57.06. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.83 and a current ratio of 3.18. The firm has a market cap of $45.77 billion, a price-to-earnings ratio of -225.47 and a beta of 2.16.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its quarterly earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.02. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. The firm had revenue of $155.08 million for the quarter, compared to analyst estimates of $152.45 million. During the same period last year, the business earned ($0.10) EPS. Rocket Lab's revenue for the quarter was up 48.0% compared to the same quarter last year. On average, sell-side analysts forecast that Rocket Lab Corporation will post -0.38 earnings per share for the current year.

Insider Buying and Selling at Rocket Lab

In related news, CEO Peter Beck sold 1,560,254 shares of the stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $57.47, for a total transaction of $89,667,797.38. Following the completion of the transaction, the chief executive officer directly owned 939,746 shares of the company's stock, valued at $54,007,202.62. This represents a 62.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Adam C. Spice sold 1,365,665 shares of the business's stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $75.50, for a total value of $103,107,707.50. Following the transaction, the chief financial officer owned 1,359,568 shares in the company, valued at $102,647,384. The trade was a 50.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 4,306,150 shares of company stock valued at $271,865,732. Insiders own 11.90% of the company's stock.

Institutional Trading of Rocket Lab

A number of institutional investors have recently added to or reduced their stakes in the stock. Sara Bay Financial grew its position in 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 shares of Rocket Lab by 9.1% in the 4th quarter. ORG Partners LLC now owns 1,458 shares of the rocket manufacturer's stock valued at $102,000 after purchasing an additional 121 shares in the last quarter. Traynor Capital Management Inc. grew its position in shares of Rocket Lab by 1.9% in the 4th quarter. Traynor Capital Management Inc. now owns 7,191 shares of the rocket manufacturer's stock worth $502,000 after acquiring an additional 133 shares in the last quarter. Capital Advisors Wealth Management LLC boosted its holdings in Rocket Lab by 1.0% in the fourth quarter. Capital Advisors Wealth Management LLC now owns 13,466 shares of the rocket manufacturer's stock worth $939,000 after purchasing an additional 136 shares during the period. Finally, Capital Investment Advisory Services LLC grew its position in shares of Rocket Lab by 2.1% during the 3rd quarter. Capital Investment Advisory Services LLC now owns 10,432 shares of the rocket manufacturer's stock valued at $500,000 after buying an additional 212 shares during the last quarter. Hedge funds and other institutional investors own 71.78% of the company's stock.

Rocket Lab Company Profile

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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