Rocket Lab (NASDAQ:RKLB) Trading Down 4.8% - Here's Why

Key Points

• Rocket Lab's stock fell by 4.8% to $46.95 after trading as low as $46.60, with a significant drop in trading volume compared to its average.
• Despite the stock's decline, several analysts have maintained a "buy" rating, with price targets ranging from $50 to $55, showing confidence in the company's growth potential.
• Rocket Lab reported a revenue increase of 35.9% year-over-year, though it missed earnings expectations by $0.06 per share in its latest quarterly report.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) dropped 4.8% during trading on Wednesday . The company traded as low as $46.60 and last traded at $46.95. Approximately 10,537,995 shares changed hands during mid-day trading, a decline of 47% from the average daily volume of 20,049,289 shares. The stock had previously closed at $49.31.

Wall Street Analysts Forecast Growth

RKLB has been the topic of a number of recent analyst reports. Needham & Company LLC restated a "buy" rating and issued a $55.00 price target on shares of Rocket Lab in a research report on Wednesday. KeyCorp raised their price target on Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Stifel Nicolaus raised their price target on Rocket Lab from $34.00 to $55.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Citigroup restated a "buy" rating and issued a $50.00 price target (up previously from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. Finally, Craig Hallum initiated coverage on Rocket Lab in a research note on Monday, July 28th. They issued a "hold" rating and a $51.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Rocket Lab presently has a consensus rating of "Moderate Buy" and a consensus price target of $42.27.

Rocket Lab Stock Performance

The stock has a market cap of $21.18 billion, a P/E ratio of -98.07 and a beta of 2.17. The company has a fifty day moving average price of $43.36 and a 200 day moving average price of $29.76. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.67 and a quick ratio of 2.33.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.06). The company had revenue of $144.50 million for the quarter, compared to analysts' expectations of $135.42 million. Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The firm's quarterly revenue was up 35.9% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.08) EPS. Rocket Lab has set its Q3 2025 guidance at EPS. On average, equities analysts expect that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insider Transactions at Rocket Lab

In related news, Director Matthew Ocko sold 820,000 shares of the stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $26.01, for a total transaction of $21,328,200.00. Following the sale, the director owned 1,083,053 shares of the company's stock, valued at approximately $28,170,208.53. This represents a 43.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Frank Klein sold 2,546 shares of the company's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $30.00, for a total value of $76,380.00. Following the completion of the transaction, the insider owned 1,365,826 shares in the company, valued at $40,974,780. This represents a 0.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,040,446 shares of company stock worth $27,247,305 over the last quarter. 11.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

Institutional investors and hedge funds have recently bought and sold shares of the stock. Stifel Financial Corp lifted its holdings in Rocket Lab by 18.5% in the 4th quarter. Stifel Financial Corp now owns 77,087 shares of the rocket manufacturer's stock worth $1,963,000 after buying an additional 12,042 shares during the period. Schonfeld Strategic Advisors LLC bought a new stake in shares of Rocket Lab in the 4th quarter worth $326,000. Mercer Global Advisors Inc. ADV increased its holdings in shares of Rocket Lab by 142.4% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 67,801 shares of the rocket manufacturer's stock worth $1,727,000 after purchasing an additional 39,832 shares in the last quarter. Algert Global LLC bought a new stake in shares of Rocket Lab in the fourth quarter worth $1,495,000. Finally, Ameriprise Financial Inc. bought a new stake in shares of Rocket Lab in the fourth quarter worth $31,601,000. 71.78% of the stock is currently owned by institutional investors.

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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