Rocket Lab (NASDAQ:RKLB) Trading Down 4.2% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB)’s stock price fell 4.2% on Monday . The company traded as low as $39.98 and last traded at $40.37. 13,167,319 shares changed hands during trading, a decline of 36% from the average session volume of 20,597,480 shares. The stock had previously closed at $42.14.

Analyst Upgrades and Downgrades

RKLB has been the topic of a number of recent research reports. Stifel Nicolaus restated a “buy” rating and issued a $75.00 price target (up from $65.00) on shares of Rocket Lab in a research report on Tuesday, November 11th. Baird R W upgraded shares of Rocket Lab to a “strong-buy” rating in a research note on Thursday, October 16th. Wall Street Zen upgraded Rocket Lab from a “strong sell” rating to a “hold” rating in a research note on Saturday, November 15th. Morgan Stanley lowered their target price on Rocket Lab from $68.00 to $67.00 and set an “equal weight” rating for the company in a report on Wednesday, November 12th. Finally, KeyCorp boosted their price objective on Rocket Lab from $50.00 to $75.00 and gave the company an “overweight” rating in a research report on Friday, October 17th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $58.17.

Rocket Lab Price Performance

The business has a fifty day moving average of $54.58 and a 200-day moving average of $44.43. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.83 and a current ratio of 3.18. The firm has a market capitalization of $21.56 billion, a P/E ratio of -106.24 and a beta of 2.20.

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, topping analysts’ consensus estimates of ($0.05) by $0.02. The company had revenue of $155.08 million during the quarter, compared to analyst estimates of $152.45 million. Rocket Lab had a negative return on equity of 27.26% and a negative net margin of 35.64%.The firm’s quarterly revenue was up 48.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.10) EPS. Rocket Lab has set its Q4 2025 guidance at EPS. On average, sell-side analysts forecast that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insider Activity

In other news, insider Frank Klein sold 45,535 shares of the stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $48.97, for a total value of $2,229,848.95. Following the completion of the transaction, the insider directly owned 1,320,291 shares in the company, valued at $64,654,650.27. This trade represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Peter Beck sold 1,436,442 shares of the business’s stock in a transaction that occurred on Tuesday, September 16th. The stock was sold at an average price of $48.75, for a total value of $70,026,547.50. Following the sale, the chief executive officer directly owned 2,500,000 shares in the company, valued at approximately $121,875,000. The trade was a 36.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 5,573,532 shares of company stock worth $274,301,358 in the last 90 days. 11.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds have recently modified their holdings of RKLB. Envestnet Asset Management Inc. lifted its holdings in shares of Rocket Lab by 8.0% in the first quarter. Envestnet Asset Management Inc. now owns 23,496 shares of the rocket manufacturer’s stock valued at $420,000 after buying an additional 1,749 shares during the period. Cetera Investment Advisers lifted its holdings in Rocket Lab by 70.4% in the 1st quarter. Cetera Investment Advisers now owns 53,021 shares of the rocket manufacturer’s stock valued at $948,000 after acquiring an additional 21,902 shares during the last quarter. LPL Financial LLC boosted its position in shares of Rocket Lab by 51.4% during the 1st quarter. LPL Financial LLC now owns 378,208 shares of the rocket manufacturer’s stock valued at $6,762,000 after purchasing an additional 128,335 shares in the last quarter. Harbour Investments Inc. grew its stake in shares of Rocket Lab by 22.6% in the 1st quarter. Harbour Investments Inc. now owns 4,954 shares of the rocket manufacturer’s stock worth $89,000 after purchasing an additional 913 shares during the last quarter. Finally, Blueshift Asset Management LLC bought a new stake in shares of Rocket Lab in the 1st quarter worth approximately $261,000. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Rocket Lab Company Profile

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.