Rocket Lab (NASDAQ:RKLB) Trading Down 8.2% Following Insider Selling

Rocket Lab Corporation (NASDAQ:RKLB) shares dropped 8.2% during mid-day trading on Friday following insider selling activity. The stock traded as low as $106.73 and last traded at $110.08. Approximately 21,069,328 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 24,126,744 shares. The stock had previously closed at $119.95.

Specifically, Director Alexander R. Slusky sold 40,000 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $123.60, for a total transaction of $4,944,000.00. Following the completion of the sale, the director owned 334,675 shares in the company, valued at approximately $41,365,830. The trade was a 10.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Arjun Kampani sold 23,804 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $147.43, for a total value of $3,509,423.72. Following the sale, the senior vice president owned 352,705 shares of the company’s stock, valued at $51,999,298.15. The trade was a 6.32% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, insider Marvin Bradford Clevenger sold 3,500 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $146.67, for a total transaction of $513,345.00. Following the completion of the sale, the insider owned 473,975 shares in the company, valued at approximately $69,517,913.25. The trade was a 0.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RKLB. Wells Fargo & Company began coverage on Rocket Lab in a report on Wednesday, April 1st. They set an “equal weight” rating and a $60.00 target price for the company. Zacks Research cut Rocket Lab from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 10th. Cantor Fitzgerald reiterated 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 report on Tuesday, May 12th. Finally, Craig Hallum raised shares of Rocket Lab from a “hold” rating to a “buy” rating and set a $98.00 price objective for the company in a research report on Friday, May 8th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Rocket Lab presently has an average rating of “Moderate Buy” and an average price target of $98.88.

Rocket Lab News Summary

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

• Positive Sentiment: Wall Street sentiment improved after Stifel raised its price target on Rocket Lab to a Street-high $132 from $110 and kept a Buy rating, reinforcing the view that growth can continue. Rocket Lab Stock (RKLB) Lands a New Street-High Target as Top Stifel Analyst Sees Stronger Growth Ahead
• Positive Sentiment: Recent coverage continues to highlight Rocket Lab’s strong operating momentum, including its first-ever $200 million revenue quarter, 63%+ year-over-year revenue growth, expanding gross margin, and a backlog that reached $2.2 billion. Rocket Lab: Don’t Hold Your Breath On Neutron
• Positive Sentiment: The broader space sector is getting a lift from SpaceX IPO excitement, and Rocket Lab is being viewed as a public-market way to play the space race, which has helped sentiment across RKLB and other space stocks. There’s More to Space Stocks Than SpaceX
• Neutral Sentiment: Some analysts and commentators are warning that the stock’s big rally may have outrun fundamentals, pointing to valuation risk and possible volatility if expectations become harder to beat. We’re Holding Rocket Lab Despite 356% Rally
• Negative Sentiment: Bearish pieces argue investors should be cautious ahead of a possible SpaceX IPO “reality check,” with concerns that competition and sky-high expectations could eventually pressure RKLB’s multiple. Rocket Lab: Sell Before The SpaceX IPO Reality Check

Rocket Lab Price Performance

The company has a debt-to-equity ratio of 0.02, a current ratio of 4.47 and a quick ratio of 4.02. The company’s 50-day simple moving average is $97.02 and its 200-day simple moving average is $78.69. The company has a market cap of $63.71 billion, a price-to-earnings ratio of -344.00 and a beta of 2.49.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The company had revenue of $200.35 million during the quarter, compared to the consensus estimate of $189.65 million. During the same quarter last year, the company 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, equities research analysts anticipate that Rocket Lab Corporation will post -0.29 EPS for the current year.

Institutional Trading of Rocket Lab

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position 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 worth $3,308,033,000 after buying an additional 5,610,469 shares in the last quarter. Baillie Gifford & Co. grew its position in shares of Rocket Lab by 47.2% during the fourth quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock worth $1,245,317,000 after buying an additional 5,725,536 shares in the last quarter. Capital World Investors grew its position in shares of Rocket Lab by 12.0% during 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 in the last quarter. State Street Corp grew its position in shares of Rocket Lab by 1.0% during the fourth quarter. State Street Corp now owns 12,520,223 shares of the rocket manufacturer’s stock worth $873,411,000 after buying an additional 120,652 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Rocket Lab by 10.1% during the fourth quarter. Geode Capital Management LLC now owns 9,004,724 shares of the rocket manufacturer’s stock worth $626,605,000 after buying an additional 825,158 shares in the last quarter. Institutional investors and hedge funds own 71.78% of the company’s stock.

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.