Rocket Lab (NASDAQ:RKLB) Trading Down 6.5% – What’s Next?

Shares of Rocket Lab Corporation (NASDAQ:RKLB) fell 6.5% on Monday . The stock traded as low as $96.50 and last traded at $100.29. Approximately 27,491,135 shares were traded during mid-day trading, an increase of 11% from the average daily volume of 24,829,258 shares. The stock had previously closed at $107.24.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Citigroup reiterated an “outperform” rating on shares of Rocket Lab in a research report on Friday, May 8th. Cantor Fitzgerald reissued an “overweight” rating on shares of Rocket Lab in a report on Wednesday, May 27th. BTIG Research restated a “hold” rating on shares of Rocket Lab in a research report on Tuesday, May 12th. Citizens Jmp lifted their price objective on shares of Rocket Lab from $85.00 to $95.00 and gave the stock a “market outperform” rating in a report on Friday, May 8th. Finally, TD Cowen upped their target price on shares of Rocket Lab from $90.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $102.76.

Rocket Lab Stock Down 5.2%

The stock has a 50-day moving average of $106.79 and a two-hundred day moving average of $84.38. The company has a market cap of $55.05 billion, a P/E ratio of -297.25 and a beta of 2.49. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47.

Rocket Lab (NASDAQ:RKLB) last issued its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.07). Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The business had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. During the same quarter in the prior year, the firm earned ($0.12) earnings per share. Rocket Lab’s revenue for the quarter was up 63.4% on a year-over-year basis. On average, research analysts anticipate that Rocket Lab Corporation will post -0.29 EPS for the current fiscal year.

Insider Transactions at Rocket Lab

In related news, Director Alexander R. Slusky sold 40,000 shares of Rocket Lab stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $123.60, for a total value of $4,944,000.00. Following the transaction, the director owned 334,675 shares in the company, valued at $41,365,830. This trade represents a 10.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Frank Klein sold 36,860 shares of the business’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $147.42, for a total transaction of $5,433,901.20. Following the completion of the sale, the insider directly owned 1,006,987 shares of the company’s stock, valued at $148,450,023.54. This represents a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 573,515 shares of company stock worth $76,412,122. Corporate insiders own 8.40% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RKLB. Baillie Gifford & Co. lifted its position in Rocket Lab by 47.2% in the fourth quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock valued at $1,245,317,000 after purchasing an additional 5,725,536 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Rocket Lab by 13.4% during the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock valued at $3,308,033,000 after purchasing an additional 5,610,469 shares during the period. Norges Bank bought a new position in shares of Rocket Lab in the fourth quarter worth approximately $341,036,000. Alliancebernstein L.P. increased its stake in shares of Rocket Lab by 818.8% in the third quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer’s stock worth $104,929,000 after buying an additional 1,951,755 shares during the period. Finally, Capital World Investors increased its stake in shares of Rocket Lab by 12.0% in the fourth quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock worth $1,130,172,000 after buying an additional 1,738,623 shares during the period. 71.78% of the stock is owned by 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.