Rocket Lab (NASDAQ:RKLB) Stock Price Down 6% - Time to Sell?

Key Points

• Shares of Rocket Lab fell about 6% on Friday to roughly $72.56 on unusually light trading (~3.74M shares vs. a 21.03M average, an ~82% drop in volume).
• Analysts hold a consensus rating of “Moderate Buy” with an average price target of $61.25, though several recent upgrades set targets between $60 and $85 and ratings skew positive (2 Strong Buy, 7 Buy, 5 Hold, 1 Sell).
• Rocket Lab beat the quarter's estimates (revenue $155.08M, EPS -$0.03 vs. -$0.05) and saw revenue rise 48% YoY, but remains unprofitable (negative net margin 35.64%, negative ROE 27.26%) while insiders have sold ~2.73M shares (~$151.8M) in the past 90 days.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares were down 6% during mid-day trading on Friday . The company traded as low as $73.26 and last traded at $72.5570. Approximately 3,740,834 shares changed hands during trading, a decline of 82% from the average daily volume of 21,028,160 shares. The stock had previously closed at $77.18.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Bank of America boosted their price target on shares of Rocket Lab from $50.00 to $60.00 and gave the company a "buy" rating in a report on Wednesday, November 19th. Stifel Nicolaus raised their price target on shares of Rocket Lab from $75.00 to $85.00 and gave the stock a "buy" rating in a research note on Monday. Robert W. Baird assumed coverage on Rocket Lab in a research note on Wednesday, October 15th. They issued an "outperform" rating and a $83.00 price objective on the stock. KeyCorp increased their target price on Rocket Lab from $50.00 to $75.00 and gave the stock an "overweight" rating in a report on Friday, October 17th. Finally, Roth Capital reiterated a "buy" rating and issued a $75.00 price target on shares of Rocket Lab in a research report on Tuesday, November 11th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $61.25.

Rocket Lab Trading Down 6.5%

The company has a current ratio of 3.18, a quick ratio of 2.83 and a debt-to-equity ratio of 0.32. The stock has a market cap of $38.55 billion, a P/E ratio of -190.30 and a beta of 2.20. The business's fifty day simple moving average is $55.27 and its 200 day simple moving average is $48.43.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.02. The company had revenue of $155.08 million during the quarter, compared to analysts' expectations of $152.45 million. Rocket Lab had a negative return on equity of 27.26% and a negative net margin of 35.64%.The business's revenue for the quarter was up 48.0% on a year-over-year basis. During the same period last year, the firm earned ($0.10) EPS. As a group, analysts expect that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insiders Place Their Bets

In other Rocket Lab news, insider Frank Klein sold 4,736 shares of the firm's stock in a transaction that occurred on Wednesday, November 26th. The shares were sold at an average price of $42.08, for a total transaction of $199,290.88. Following the sale, the insider directly owned 1,269,487 shares in the company, valued at approximately $53,420,012.96. This trade represents a 0.37% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Nina Armagno sold 27,314 shares of the company's stock in a transaction on Friday, December 19th. The stock was sold at an average price of $68.21, for a total transaction of $1,863,087.94. Following the completion of the transaction, the director directly owned 108,940 shares of the company's stock, valued at approximately $7,430,797.40. The trade was a 20.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,729,485 shares of company stock worth $151,832,870 over the last 90 days. 11.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds have recently modified their holdings of the stock. Wilmington Savings Fund Society FSB bought a new position in shares of Rocket Lab during the 3rd quarter worth approximately $25,000. Hara Capital LLC bought a new stake in shares of Rocket Lab during the 3rd quarter worth about $25,000. UMB Bank n.a. grew its stake in Rocket Lab by 352.5% in the 3rd quarter. UMB Bank n.a. now owns 543 shares of the rocket manufacturer's stock valued at $26,000 after buying an additional 423 shares during the last quarter. Sound Income Strategies LLC acquired a new position in Rocket Lab in the 3rd quarter valued at about $27,000. Finally, Financial Consulate Inc. bought a new position in Rocket Lab in the 3rd quarter valued at about $35,000. 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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