Rocket Lab (NASDAQ:RKLB) Stock Price Down 8.2% - What's Next?

Key Points

• Rocket Lab shares fell 8.2% on Friday, trading below the prior close as volume came in under the average session level.
• Despite the pullback, sentiment remained upbeat after Stifel raised its price target to $132 and reiterated a Buy rating, while other analysts also maintained bullish views.
• The company’s fundamentals continue to show strong growth, with 63.4% year-over-year revenue growth last quarter and a $2.2 billion backlog supporting the long-term case for the stock.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares traded down 8.2% during trading on Friday . The company traded as low as $106.73 and last traded at $110.08. 21,069,328 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 24,126,744 shares. The stock had previously closed at $119.95.

Rocket Lab News Summary

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Stifel raised its price target on Rocket Lab to $132 from $110 and reiterated a Buy rating, citing stronger growth ahead and helping lift sentiment around the stock. Article Title
• Positive Sentiment: Several articles note that Rocket Lab is benefiting from a broader “space trade”, with investors rotating into public space names as excitement builds around the SpaceX IPO roadshow and related industry growth. Article Title
• Positive Sentiment: Recent commentary also points to Rocket Lab’s strong operating trend, including 63.5% year-over-year revenue growth, expanding gross margin, and a $2.2 billion backlog, which support the bull case for long-term investors. Article Title

Analysts Set New Price Targets

RKLB has been the topic of a number of research analyst reports. Craig Hallum raised Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 target price on the stock in a report on Friday, May 8th. TD Cowen raised their price objective on shares of Rocket Lab from $90.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Clear Str upgraded shares of Rocket Lab to a "strong-buy" rating in a report on Wednesday, March 18th. Citigroup reissued an "outperform" rating on shares of Rocket Lab in a research note on Friday, May 8th. Finally, Zacks Research cut shares of Rocket Lab from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 10th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $98.88.

Rocket Lab Price Performance

The stock has a 50-day moving average of $96.28 and a two-hundred day moving average of $78.47. The firm has a market cap of $63.71 billion, a price-to-earnings ratio of -344.00 and a beta of 2.49. The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.07). Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The firm had revenue of $200.35 million for the quarter, compared to the consensus estimate of $189.65 million. During the same quarter in the previous year, the company earned ($0.12) EPS. The business's revenue for the quarter was up 63.4% compared to the same quarter last year. On average, analysts anticipate that Rocket Lab Corporation will post -0.29 EPS for the current year.

Insiders Place Their Bets

In other Rocket Lab news, Director Alexander R. Slusky sold 60,000 shares of the business's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $149.40, for a total transaction of $8,964,000.00. Following the sale, the director directly owned 374,675 shares of the company's stock, valued at $55,976,445. The trade was a 13.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Marvin Bradford Clevenger sold 3,500 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $146.67, for a total value of $513,345.00. Following the completion of the sale, the insider owned 473,975 shares of the company's stock, valued at $69,517,913.25. The trade was a 0.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 445,515 shares of company stock worth $61,965,882 in the last quarter. Corporate insiders own 8.40% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Aventura Private Wealth LLC acquired a new stake in Rocket Lab during the 4th quarter worth about $25,000. UMB Bank n.a. increased its holdings in shares of 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 purchasing an additional 423 shares during the period. Mcguire Capital Advisors Inc. purchased a new stake in shares of Rocket Lab in the fourth quarter worth approximately $27,000. Zions Bancorporation National Association UT purchased a new position in Rocket Lab during the fourth quarter valued at approximately $28,000. Finally, EverSource Wealth Advisors LLC lifted its position in Rocket Lab by 109.5% in the 2nd 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. 71.78% of the stock is owned by institutional investors and hedge funds.

About Rocket Lab

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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