Rocket Lab (NASDAQ:RKLB) Trading Down 7% - Time to Sell?

Key Points

• Rocket Lab's stock price decreased by 7% to $41.82, following a trading volume drop of 46% compared to its average daily volume.
• Analysts have set a consensus rating of "Moderate Buy" for Rocket Lab, with price targets ranging from $27 to $55, indicating varying levels of confidence in the stock's potential.
• The company reported a loss per share of $0.13 for the last quarter, missing estimates, but showed significant revenue growth of 35.9% year-over-year.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares dropped 7% during trading on Tuesday . The company traded as low as $41.77 and last traded at $41.82. Approximately 10,712,462 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 19,887,283 shares. The stock had previously closed at $44.97.

Wall Street Analyst Weigh In

RKLB has been the topic of a number of recent research reports. Roth Capital increased their price objective on Rocket Lab from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Wednesday, May 28th. The Goldman Sachs Group initiated coverage on Rocket Lab in a research report on Monday, June 30th. They issued a "neutral" rating and a $27.00 price objective on the stock. Citigroup reiterated a "buy" rating and issued a $50.00 price objective (up from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. 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. Finally, 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. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Rocket Lab has a consensus rating of "Moderate Buy" and an average target price of $42.27.

Rocket Lab Stock Performance

The company has a debt-to-equity ratio of 0.60, a current ratio of 2.67 and a quick ratio of 2.33. The company has a 50-day moving average price of $40.74 and a 200-day moving average price of $28.80.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly 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). Rocket Lab had a negative return on equity of 48.14% and a negative net margin of 45.87%.The company had revenue of $144.50 million during the quarter, compared to the consensus estimate of $135.42 million. During the same quarter in the prior year, the business earned ($0.08) earnings per share. The firm's revenue for the quarter was up 35.9% on a year-over-year basis. Rocket Lab has set its Q3 2025 guidance at EPS. Analysts forecast that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Frank Klein sold 2,546 shares of the firm's stock in a transaction on Monday, June 9th. The stock was sold at an average price of $30.00, for a total transaction of $76,380.00. Following the sale, 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 position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Merline Saintil sold 6,353 shares of the firm's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $33.38, for a total value of $212,063.14. Following the sale, the director directly owned 419,569 shares in the company, valued at $14,005,213.22. The trade was a 1.49% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,130,995 shares of company stock worth $29,686,039. 11.90% of the stock is owned by corporate insiders.

Institutional Trading of Rocket Lab

Hedge funds have recently added to or reduced their stakes in the business. Versant Capital Management Inc raised its stake in Rocket Lab by 118.1% during the 1st quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 860 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of Rocket Lab by 109.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after purchasing an additional 416 shares during the period. MassMutual Private Wealth & Trust FSB acquired a new stake in shares of Rocket Lab in the 1st quarter valued at about $29,000. Farther Finance Advisors LLC raised its stake in shares of Rocket Lab by 181.1% in the 1st quarter. Farther Finance Advisors LLC now owns 1,903 shares of the rocket manufacturer's stock valued at $35,000 after purchasing an additional 1,226 shares during the period. Finally, Spectrum Wealth Counsel LLC raised its stake in shares of Rocket Lab by 100.0% in the 1st quarter. Spectrum Wealth Counsel LLC now owns 2,000 shares of the rocket manufacturer's stock valued at $36,000 after purchasing an additional 1,000 shares during the period. 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.