Rocket Lab (NASDAQ:RKLB) Stock Price Down 7.5% - Time to Sell?

Key Points

• Rocket Lab shares fell about 7.5% on Friday to $70.86 (intraday low $69.40) on roughly 18.1 million shares traded, about 21% below the stock's average daily volume.
• Analysts hold a Moderate Buy consensus with a $72.92 average target, but ratings and price targets vary widely—ranging from Hold/Sell views to bullish targets as high as $120.
• Significant insider selling has occurred recently: the CFO sold 1,365,665 shares (~$103.1M) and insiders disposed of about 4.31 million shares (~$271.9M) in the last 90 days.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s share price was down 7.5% during trading on Friday . The company traded as low as $69.40 and last traded at $70.86. Approximately 18,133,974 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 23,029,789 shares. The stock had previously closed at $76.58.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on RKLB. Zacks Research downgraded Rocket Lab from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 10th. Citigroup restated a "market perform" rating on shares of Rocket Lab in a research note on Wednesday, November 12th. Needham & Company LLC raised their price target on shares of Rocket Lab from $63.00 to $90.00 and gave the company a "buy" rating in a report on Tuesday, December 23rd. Roth Mkm reiterated a "buy" rating and issued a $75.00 price target on shares of Rocket Lab in a research note on Tuesday, November 11th. Finally, Bank of America increased their price objective on shares of Rocket Lab from $60.00 to $120.00 and gave the company a "buy" rating in a research report on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Rocket Lab currently has an average rating of "Moderate Buy" and a consensus target price of $72.92.

Rocket Lab Stock Down 7.5%

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 $37.85 billion, a P/E ratio of -186.47 and a beta of 2.16. The company's 50 day moving average price is $76.97 and its two-hundred day moving average price is $60.10.

Insiders Place Their Bets

In related news, SVP Arjun Kampani sold 28,615 shares of the firm's stock in a transaction on Monday, November 24th. The stock was sold at an average price of $40.65, for a total value of $1,163,199.75. Following the transaction, the senior vice president directly owned 461,014 shares of the company's stock, valued at approximately $18,740,219.10. This trade represents a 5.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Adam C. Spice sold 1,365,665 shares of Rocket Lab stock in a transaction on Monday, January 5th. The shares were 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. This trade represents a 50.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 4,306,150 shares of company stock valued at $271,865,732. 11.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Rocket Lab

A number of hedge funds and other institutional investors have recently bought and sold shares of RKLB. Wilmington Savings Fund Society FSB purchased a new position in shares of Rocket Lab during the 3rd quarter valued at about $25,000. Hara Capital LLC bought a new stake in Rocket Lab during the 3rd quarter worth approximately $25,000. Aventura Private Wealth LLC purchased a new position in Rocket Lab during the fourth quarter valued at approximately $25,000. UMB Bank n.a. lifted its holdings in Rocket Lab by 352.5% during the third quarter. UMB Bank n.a. now owns 543 shares of the rocket manufacturer's stock valued at $26,000 after purchasing an additional 423 shares in the last quarter. Finally, Sound Income Strategies LLC bought a new position in shares of Rocket Lab in the third quarter worth approximately $27,000. 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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