Rocket Lab (NASDAQ:RKLB) Trading Down 1.3% - What's Next?

Key Points

• Rocket Lab shares saw a 1.3% decline during trading, dropping to $42.86 with a volume of 5.56 million shares, significantly lower than its average of 19.94 million.
• Analysts have a consensus rating of "Moderate Buy" for Rocket Lab, with target prices ranging from $27 to $55 after several upgrades from firms like Needham & Company and Citigroup.
• The company's recent earnings report showed a loss of ($0.13) per share, missing estimates, but revenue increased by 35.9% year-over-year to $144.50 million.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares traded down 1.3% during trading on Wednesday . The company traded as low as $42.70 and last traded at $42.86. 5,560,964 shares were traded during mid-day trading, a decline of 72% from the average session volume of 19,940,855 shares. The stock had previously closed at $43.43.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. The Goldman Sachs Group assumed coverage on shares of Rocket Lab in a research report on Monday, June 30th. They issued a "neutral" rating and a $27.00 price objective for the company. Needham & Company LLC reiterated a "buy" rating and issued a $55.00 target price (up from $45.00) on shares of Rocket Lab in a research note on Friday, August 8th. Citigroup reiterated a "buy" rating and issued a $50.00 target price (up from $33.00) on shares of Rocket Lab in a research note on Monday, July 14th. Stifel Nicolaus raised their target price on shares of Rocket Lab from $34.00 to $55.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. Finally, Cantor Fitzgerald raised their price objective on shares of Rocket Lab from $35.00 to $54.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Five investment analysts have rated the stock with a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $42.27.

Rocket Lab Price Performance

The business's 50 day moving average is $38.26 and its 200-day moving average is $28.02. The firm has a market capitalization of $19.84 billion, a P/E ratio of -95.56 and a beta of 2.17. The company has a quick ratio of 1.72, a current ratio of 2.67 and a debt-to-equity ratio of 0.60.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.06). The firm had revenue of $144.50 million during the quarter, compared to the consensus estimate 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 was up 35.9% compared to the same quarter last year. During the same period last year, the business earned ($0.08) earnings per share. As a group, sell-side analysts predict that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insider Activity at Rocket Lab

In other news, Director Merline Saintil sold 6,353 shares of Rocket Lab stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total transaction of $212,063.14. Following the transaction, the director owned 419,569 shares in the company, valued at approximately $14,005,213.22. The trade was a 1.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Arjun Kampani sold 5,194 shares of Rocket Lab stock in a transaction on Monday, June 9th. The stock was sold at an average price of $30.00, for a total transaction of $155,820.00. Following the transaction, the insider owned 530,230 shares in the company, valued at approximately $15,906,900. This trade represents a 0.97% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,130,995 shares of company stock worth $29,686,039. 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 bought and sold shares of the company. Truist Financial Corp grew its stake in shares of Rocket Lab by 1.9% in the 2nd quarter. Truist Financial Corp now owns 12,352 shares of the rocket manufacturer's stock valued at $442,000 after buying an additional 234 shares during the period. GAMMA Investing LLC grew its position in Rocket Lab by 36.4% in the 2nd quarter. GAMMA Investing LLC now owns 1,518 shares of the rocket manufacturer's stock worth $54,000 after purchasing an additional 405 shares in the last quarter. Allworth Financial LP grew its position in Rocket Lab by 4.0% in the 1st quarter. Allworth Financial LP now owns 11,888 shares of the rocket manufacturer's stock worth $213,000 after purchasing an additional 458 shares in the last quarter. Atria Wealth Solutions Inc. grew its position in Rocket Lab by 1.4% in the 1st quarter. Atria Wealth Solutions Inc. now owns 35,085 shares of the rocket manufacturer's stock worth $627,000 after purchasing an additional 500 shares in the last quarter. Finally, CWM LLC grew its position in Rocket Lab by 7.0% in the 2nd quarter. CWM LLC now owns 8,491 shares of the rocket manufacturer's stock worth $304,000 after purchasing an additional 556 shares in the last quarter. Institutional investors and hedge funds own 71.78% of the company's stock.

About Rocket Lab

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.

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