Rocket Lab (NASDAQ:RKLB) Shares Down 5% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB) was down 5% during trading on Tuesday . The stock traded as low as $71.55 and last traded at $72.03. Approximately 13,108,393 shares changed hands during trading, a decline of 47% from the average daily volume of 24,744,570 shares. The stock had previously closed at $75.84.

Key Rocket Lab News

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Big defense awards and backlog growth cushion revenue visibility — reporting of a landmark ~$816M U.S. Space Force deal and a backlog north of $1B supports future revenue and defense-commercial demand for Electron and Neutron. QuiverQuant: Analyst Upgrades & Defense Contracts
• Positive Sentiment: Analyst support remains strong — brokerages maintain a constructive stance (consensus “Moderate Buy”) and several firms have raised price targets and ratings in recent weeks, giving institutional validation to the growth story. American Banking News: Consensus Rating
• Positive Sentiment: Operational execution and revenue growth underpin fundamentals — strong launch cadence (dozens of Electron missions) and revenue up ~48% year-over-year helped fuel the 12-month rally and remain supportive of long-term growth expectations. Zacks: RKLB Outperforms
• Neutral Sentiment: Technical picture: the pullback looks like a consolidation rather than trend reversal — shares have fallen from January highs but are finding support near the 50-day moving average and remain above the 200-day average, suggesting investors are watching key technical levels for confirmation. MarketBeat: Neutron Hiccup Analysis
• Negative Sentiment: Neutron test incident increased short-term uncertainty — a Stage?1 tank rupture during qualification testing raised fears of development delays and triggered the recent sell-off as timeline clarity is still pending. Investors are awaiting the company’s update on impact and timing. MSN: Rocket Lab stock slips
• Negative Sentiment: Heavy insider selling is a red flag for some investors — multiple senior executives have sold shares in recent months, which market chatter highlights as a potential concern on sentiment despite company progress. QuiverQuant: Insider Activity

Wall Street Analyst Weigh In

A number of equities analysts recently commented on RKLB shares. Robert W. Baird upgraded shares of Rocket Lab to a “strong-buy” rating in a research note on Thursday, October 16th. Citigroup reaffirmed a “market perform” rating on shares of Rocket Lab in a report on Wednesday, November 12th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Rocket Lab in a report on Wednesday, December 3rd. TD Cowen reaffirmed a “buy” rating on shares of Rocket Lab in a report on Thursday, January 22nd. Finally, Morgan Stanley raised shares of Rocket Lab from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $67.00 to $105.00 in a report on Friday, January 16th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $72.92.

Rocket Lab Stock Performance

The company has a current ratio of 3.18, a quick ratio of 2.83 and a debt-to-equity ratio of 0.32. The stock’s 50 day moving average is $73.74 and its 200 day moving average is $58.72. The stock has a market capitalization of $38.48 billion, a price-to-earnings ratio of -189.55 and a beta of 2.16.

Rocket Lab (NASDAQ:RKLB) last announced its quarterly earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.02. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. The company had revenue of $155.08 million for the quarter, compared to the consensus estimate of $152.45 million. During the same quarter in the prior year, the firm earned ($0.10) earnings per share. The company’s revenue for the quarter was up 48.0% compared to the same quarter last year. On average, analysts predict that Rocket Lab Corporation will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Peter Beck sold 1,560,254 shares of Rocket Lab stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $57.47, for a total transaction of $89,667,797.38. Following the completion of the sale, the chief executive officer directly owned 939,746 shares in the company, valued at $54,007,202.62. The trade was a 62.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Merline Saintil sold 96,000 shares of the company’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $86.58, for a total transaction of $8,311,680.00. Following the transaction, the director directly owned 292,529 shares in the company, valued at $25,327,160.82. The trade was a 24.71% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 4,306,150 shares of company stock valued at $271,865,732. Company insiders own 11.90% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. AQR Capital Management LLC raised its stake in Rocket Lab by 114.0% during the first quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer’s stock worth $3,117,000 after purchasing an additional 92,849 shares during the period. NewEdge Advisors LLC raised its position in shares of Rocket Lab by 1,812.1% in the 1st quarter. NewEdge Advisors LLC now owns 36,807 shares of the rocket manufacturer’s stock worth $658,000 after buying an additional 34,882 shares during the period. Jones Financial Companies Lllp boosted its holdings in Rocket Lab by 53.8% in the first quarter. Jones Financial Companies Lllp now owns 15,745 shares of the rocket manufacturer’s stock valued at $282,000 after acquiring an additional 5,507 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Rocket Lab by 13.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 773,548 shares of the rocket manufacturer’s stock valued at $13,831,000 after acquiring an additional 90,758 shares during the period. Finally, Focus Partners Wealth grew its position in Rocket Lab by 1.0% during the first quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer’s stock valued at $1,206,000 after acquiring an additional 681 shares during the period. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Lab Company Profile

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company’s primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company’s propulsion capabilities.