Rocket Lab USA (NASDAQ:RKLB) Shares Gap Down - Should You Sell?

Rocket Lab USA, Inc. (NASDAQ:RKLB - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $25.57, but opened at $24.30. Rocket Lab USA shares last traded at $25.27, with a volume of 4,530,283 shares traded.

Analysts Set New Price Targets

RKLB has been the topic of several analyst reports. TD Cowen upgraded Rocket Lab USA to a "strong-buy" rating in a report on Monday, February 24th. Wells Fargo & Company dropped their target price on Rocket Lab USA from $21.00 to $18.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 8th. Needham & Company LLC reiterated a "buy" rating and issued a $28.00 price target on shares of Rocket Lab USA in a research note on Tuesday, May 13th. Morgan Stanley lifted their price objective on shares of Rocket Lab USA from $18.00 to $20.00 and gave the company an "equal weight" rating in a research report on Monday, March 10th. Finally, KeyCorp dropped their price objective on shares of Rocket Lab USA from $32.00 to $28.00 and set an "overweight" rating on the stock in a research report on Friday, February 28th. Five research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, Rocket Lab USA currently has an average rating of "Moderate Buy" and an average target price of $23.50.

Rocket Lab USA Trading Down 1.3%

The company has a debt-to-equity ratio of 0.97, a current ratio of 2.58 and a quick ratio of 2.16. The firm has a market capitalization of $11.45 billion, a P/E ratio of -68.28 and a beta of 2.04. The business's 50-day moving average is $20.19 and its 200 day moving average is $22.57.

Rocket Lab USA (NASDAQ:RKLB - Get Free Report) last released its earnings results on Thursday, May 8th. The rocket manufacturer reported ($0.12) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.02). The business had revenue of $122.57 million for the quarter, compared to the consensus estimate of $120.74 million. Rocket Lab USA had a negative return on equity of 39.47% and a negative net margin of 51.76%. The firm's revenue for the quarter was up 32.1% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.09) earnings per share. As a group, analysts anticipate that Rocket Lab USA, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at Rocket Lab USA

In other Rocket Lab USA news, insider Frank Klein sold 44,553 shares of the company's stock in a transaction on Friday, March 14th. The shares were sold at an average price of $18.18, for a total transaction of $809,973.54. Following the transaction, the insider now owns 1,419,479 shares in the company, valued at approximately $25,806,128.22. This represents a 3.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 13.70% of the company's stock.

Hedge Funds Weigh In On Rocket Lab USA

Several hedge funds have recently modified their holdings of RKLB. Spectrum Wealth Counsel LLC purchased a new stake in Rocket Lab USA during the fourth quarter worth about $25,000. Sandy Spring Bank purchased a new stake in Rocket Lab USA during the fourth quarter worth about $26,000. Wingate Wealth Advisors Inc. purchased a new stake in Rocket Lab USA during the fourth quarter worth about $40,000. Versant Capital Management Inc increased its holdings in Rocket Lab USA by 118.1% during the first 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 last quarter. Finally, MassMutual Private Wealth & Trust FSB purchased a new stake in Rocket Lab USA during the first quarter worth about $29,000. Institutional investors own 71.78% of the company's stock.

About Rocket Lab USA

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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