Rocket Lab (NASDAQ:RKLB) Stock Falls 8% After Analyst Downgrade

Rocket Lab Corporation (NASDAQ:RKLB) shares fell 8% during trading on Friday after Citizens Jmp lowered their price target on the stock from $130.00 to $90.00. Citizens Jmp currently has a market outperform rating on the stock. Rocket Lab traded as low as $50.37 and last traded at $50.84. 23,667,552 shares were traded during mid-day trading, an increase of 2% from the average session volume of 23,100,502 shares. The stock had previously closed at $55.25.

RKLB has been the topic of a number of other research reports. KGI Securities raised Rocket Lab from a “neutral” rating to an “outperform” rating and set a $107.00 price objective on the stock in a research note on Monday, July 27th. Berenberg Bank assumed coverage on Rocket Lab in a research note on Wednesday, September 2nd. They issued a “buy” rating and a $83.00 target price for the company. Roth Capital restated a “buy” rating on shares of Rocket Lab in a research note on Thursday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rocket Lab in a report on Thursday. Finally, Cantor Fitzgerald reiterated a “mixed” rating and set a $122.00 price target on shares of Rocket Lab in a research report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $102.05.

Insiders Place Their Bets

In other news, insider Frank Klein sold 45,692 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $69.63, for a total value of $3,181,533.96. Following the completion of the transaction, the insider owned 961,295 shares in the company, valued at $66,934,970.85. This represents a 4.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Adam C. Spice sold 140,157 shares of Rocket Lab stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $70.82, for a total value of $9,925,918.74. Following the completion of the sale, the chief financial officer directly owned 1,155,967 shares in the company, valued at $81,865,582.94. This represents a 10.81% 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. Insiders sold 400,749 shares of company stock worth $26,964,474 over the last three months. Insiders own 8.40% of the company’s stock.

Key Rocket Lab News

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

• Positive Sentiment: Rocket Lab continues to benefit from strong underlying demand, including record second-quarter revenue of approximately $234 million, up 62% year over year, and a backlog of roughly $2.4 billion. Its Electron launch, satellite, spacecraft-component and defense businesses remain active while Neutron is delayed. Rocket Lab Still Has a $2.4B Backlog While Neutron Waits
• Positive Sentiment: Several analysts remain constructive on the long-term story. TD Cowen reaffirmed a Buy rating with a $90 target, while Citizens JMP maintained Market Outperform despite reducing its target to $90 from $130. Other analysts also continue to see substantial potential if Neutron succeeds. Stay Cool, Says Analyst About Rocket Lab Stock
• Neutral Sentiment: Rocket Lab said Neutron’s inaugural launch is now expected in 2027 rather than the previously targeted fourth quarter of 2026. Management plans additional testing and will establish a launch date afterward. The company says the schedule change reflects a focus on reliability and quality. Rocket Lab Provides Update on Neutron Development and Adjusts Target Launch Timing
• Negative Sentiment: The delay was triggered by manufacturing defects in a carbon-composite forward propellant dome on Neutron’s first-stage tank, following an earlier tank rupture during testing. Because Neutron is central to Rocket Lab’s move into the larger medium-lift launch market, investors are concerned about execution risk, additional cash burn and a later path to positive adjusted EBITDA. Rocket Lab Discusses Neutron Program Update and Manufacturing Challenges
• Negative Sentiment: Wall Street has begun repricing the delay: KeyBanc cut its target to $100 from $135, while Citizens JMP reduced its target to $90 from $130. The stock also remains under pressure from its high valuation, prior equity issuance tied to the pending Iridium acquisition and reported insider selling.

Institutional Trading of Rocket Lab

Hedge funds and other institutional investors have recently modified their holdings of the stock. Reflection Asset Management acquired a new position in shares of Rocket Lab during the 4th quarter worth approximately $30,000. Meeder Asset Management Inc. acquired a new stake in shares of Rocket Lab in the 2nd quarter valued at approximately $30,000. Highland Investment Advisors LLC acquired a new stake in shares of Rocket Lab in the 2nd quarter valued at approximately $30,000. NBH Bank bought a new position in shares of Rocket Lab in the second quarter valued at $30,000. Finally, Cherry Tree Wealth Management LLC bought a new position in shares of Rocket Lab in the second quarter valued at $32,000. Institutional investors and hedge funds own 71.78% of the company’s stock.

Rocket Lab Stock Performance

The firm has a market capitalization of $30.42 billion, a price-to-earnings ratio of -188.29 and a beta of 2.93. The stock’s fifty day moving average is $69.50 and its two-hundred day moving average is $84.29. The company has a quick ratio of 4.98, a current ratio of 5.48 and a debt-to-equity ratio of 0.01.

Rocket Lab (NASDAQ:RKLB) last posted its quarterly earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.02). The firm had revenue of $234.07 million for the quarter, compared to the consensus estimate of $231.62 million. Rocket Lab had a negative return on equity of 6.48% and a negative net margin of 21.51%. On average, analysts predict that Rocket Lab Corporation will post -0.20 earnings per share for the current year.

Rocket Lab Company Profile

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab’s primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.