Rocket Lab (NASDAQ:RKLB) Trading Down 1.6% - Here's What Happened

Key Points

• Rocket Lab's shares fell by 1.6% to $43.81, with trading volume decreasing by 78% compared to the daily average.
• Multiple analysts have issued ratings and price targets for Rocket Lab, with Citigroup and Bank of America setting a target of $50 while Goldman Sachs set a $27 price objective.
• The company reported a revenue growth of 32.1% year-over-year, totaling $122.57 million, but missed earnings expectations with an EPS of ($0.12).

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) were down 1.6% on Tuesday . The stock traded as low as $43.27 and last traded at $43.81. Approximately 4,452,264 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 19,886,988 shares. The stock had previously closed at $44.54.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Citigroup reaffirmed a "buy" rating and set a $50.00 price target (up previously from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. The Goldman Sachs Group initiated coverage on Rocket Lab in a research report on Monday, June 30th. They set a "neutral" rating and a $27.00 price objective on the stock. Bank of America raised their price target on Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Craig Hallum initiated coverage on Rocket Lab in a research report on Monday, July 28th. They issued a "hold" rating and a $51.00 price objective on the stock. Finally, KeyCorp lifted their price objective on Rocket Lab from $29.00 to $40.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 2nd. 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. Based on data from MarketBeat.com, Rocket Lab has an average rating of "Moderate Buy" and a consensus target price of $37.55.

Rocket Lab Trading Down 1.4%

The company has a 50 day simple moving average of $36.23 and a 200 day simple moving average of $27.38. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.72 and a current ratio of 2.08. The company has a market capitalization of $20.26 billion, a PE ratio of -110.27 and a beta of 2.17.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its quarterly earnings data on Thursday, May 8th. The rocket manufacturer reported ($0.12) EPS for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.02). Rocket Lab had a negative net margin of 44.32% and a negative return on equity of 48.92%. The business had revenue of $122.57 million during the quarter, compared to analyst estimates of $120.74 million. During the same quarter in the prior year, the company posted ($0.09) earnings per share. The company's revenue was up 32.1% on a year-over-year basis. Analysts anticipate that Rocket Lab Corporation will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other Rocket Lab news, insider Frank Klein sold 2,546 shares of the firm's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $30.00, for a total transaction of $76,380.00. Following the transaction, the insider owned 1,365,826 shares of the company's stock, valued at approximately $40,974,780. This trade represents a 0.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Merline Saintil sold 6,353 shares of the firm's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $33.38, for a total value of $212,063.14. Following the transaction, the director directly owned 419,569 shares in the company, valued at approximately $14,005,213.22. This represents a 1.49% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,130,995 shares of company stock valued at $29,686,039 in the last three months. Corporate insiders own 13.70% of the company's stock.

Institutional Investors Weigh In On Rocket Lab

A number of hedge funds and other institutional investors have recently modified their holdings of RKLB. Wellington Management Group LLP acquired a new position in shares of Rocket Lab in the fourth quarter worth $17,261,000. SG Americas Securities LLC grew its stake in shares of Rocket Lab by 2,186.7% during the 1st quarter. SG Americas Securities LLC now owns 353,522 shares of the rocket manufacturer's stock valued at $6,321,000 after buying an additional 338,062 shares during the period. Cambridge Investment Research Advisors Inc. grew its stake in shares of Rocket Lab by 52.0% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 58,652 shares of the rocket manufacturer's stock valued at $1,049,000 after buying an additional 20,076 shares during the period. Smith Anglin Financial LLC boosted its position in Rocket Lab by 132.1% during the 1st quarter. Smith Anglin Financial LLC now owns 27,261 shares of the rocket manufacturer's stock worth $487,000 after purchasing an additional 15,515 shares during the period. Finally, Rhumbline Advisers raised its stake in shares of Rocket Lab by 9.6% in the 1st quarter. Rhumbline Advisers now owns 525,018 shares of the rocket manufacturer's stock valued at $9,387,000 after purchasing an additional 45,889 shares in the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.

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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