Rocket Lab (NASDAQ:RKLB) Trading Down 4.9% - Here's What Happened

Key Points

• Rocket Lab's stock dropped 4.9% during trading, reaching a low of $38.26 before closing at $38.91, with volume down 53% from its average session.
• Analysts have increased price targets for Rocket Lab, with KeyCorp raising it to $50.00 and Needham & Company boosting it to $55.00, while the stock has an average target of $42.27 and a consensus rating of "Moderate Buy."
• Rocket Lab reported Q2 earnings missing expectations with a loss of $0.13 EPS and revenue of $144.50 million, although revenue was up 35.9% year-over-year.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) fell 4.9% during trading on Wednesday . The company traded as low as $38.26 and last traded at $38.91. 9,283,963 shares were traded during trading, a decline of 53% from the average session volume of 19,912,697 shares. The stock had previously closed at $40.92.

Analysts Set New Price Targets

A number of brokerages have commented on RKLB. KeyCorp lifted their target price on shares of Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. The Goldman Sachs Group initiated coverage on shares of Rocket Lab in a research note on Monday, June 30th. They issued a "neutral" rating and a $27.00 price target on the stock. Needham & Company LLC reissued a "buy" rating and issued a $55.00 price target (up from $45.00) on shares of Rocket Lab in a research note on Friday, August 8th. Stifel Nicolaus boosted their price target 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, Craig Hallum initiated coverage on shares of Rocket Lab in a research note on Monday, July 28th. They issued a "hold" rating and a $51.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $42.27.

Rocket Lab Stock Performance

The stock has a market cap of $19.19 billion, a price-to-earnings ratio of -88.88 and a beta of 2.17. The company has a current ratio of 2.67, a quick ratio of 2.33 and a debt-to-equity ratio of 0.60. The stock's 50 day moving average is $39.79 and its two-hundred day moving average is $28.51.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its quarterly earnings results 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 company had revenue of $144.50 million during 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 business's revenue for the quarter was up 35.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.08) EPS. Rocket Lab has set its Q3 2025 guidance at EPS. Analysts anticipate that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Rocket Lab

In other news, Director Merline Saintil sold 6,353 shares of the business's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total value of $212,063.14. Following the completion of the transaction, the director owned 419,569 shares of the company's stock, valued at $14,005,213.22. The trade was a 1.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Arjun Kampani sold 5,194 shares of the business's stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $30.00, for a total transaction of $155,820.00. Following the completion of the transaction, the insider directly owned 530,230 shares of the company's stock, valued at approximately $15,906,900. This represents a 0.97% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,130,995 shares of company stock valued at $29,686,039 in the last quarter. Insiders own 11.90% of the company's stock.

Institutional Trading of Rocket Lab

Several institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC grew its position in shares of Rocket Lab by 109.5% during the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after acquiring an additional 416 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in Rocket Lab in the second quarter worth about $36,000. Kilter Group LLC acquired a new stake in Rocket Lab in the second quarter worth about $37,000. ORG Partners LLC lifted its holdings in Rocket Lab by 491.9% in the 2nd quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock valued at $38,000 after acquiring an additional 910 shares during the last quarter. Finally, Golden State Wealth Management LLC lifted its holdings in Rocket Lab by 3,250.0% in the 2nd quarter. Golden State Wealth Management LLC now owns 1,340 shares of the rocket manufacturer's stock valued at $48,000 after acquiring an additional 1,300 shares during the last quarter. Institutional investors own 71.78% of the company's stock.

Rocket Lab Company Profile

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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