Rocket Lab (NASDAQ:RKLB) Stock Price Down 4.2% – What’s Next?

Shares of Rocket Lab Corporation (NASDAQ:RKLB) traded down 4.2% during trading on Tuesday . The stock traded as low as $103.07 and last traded at $104.63. 27,697,980 shares were traded during mid-day trading, an increase of 14% from the average session volume of 24,324,975 shares. The stock had previously closed at $109.25.

Rocket Lab News Roundup

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

• Positive Sentiment: KeyBanc upgraded Rocket Lab to Overweight and set a $135 price target, saying the recent space-sector selloff tied to the SpaceX IPO looks overdone and that RKLB is a top beneficiary of stronger launch demand and sector growth. Rocket Lab and Firefly Get Upgrades. Why the Space Selloff Was ‘Unwarranted.’
• Positive Sentiment: Analysts and bullish commentary continue to frame Rocket Lab as a strong “clear #2” space launch player, supported by growth in its launch cadence, government contracts, backlog, and acquisitions that expand its robotics and spacecraft capabilities. How Is Rocket Lab Strengthening Growth Through Strategic Acquisitions?
• Neutral Sentiment: Rocket Lab is benefiting from elevated investor interest in the broader space sector, but that attention is being concentrated in SpaceX, which is pulling trading activity and short-term speculative money away from RKLB. Gravity Check: Houston, SpaceX Has a Valuation Problem
• Negative Sentiment: Recent articles point to a short-term valuation concern for RKLB after a strong run, with some commentators saying the stock may be overextended even though long-term fundamentals remain intact. Rocket Lab (RKLB) Stock Could Be 28.5% Overvalued on Its Defense Growth Narrative

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Wells Fargo & Company started coverage on shares of Rocket Lab in a research note on Wednesday, April 1st. They issued an “equal weight” rating and a $60.00 price target on the stock. Citizens Jmp boosted their target price 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. Roth Mkm boosted their target price on shares of Rocket Lab from $90.00 to $100.00 and gave the stock a “buy” rating in a report on Friday, April 17th. Citigroup restated an “outperform” rating on shares of Rocket Lab in a report on Friday, May 8th. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Rocket Lab in a report on Wednesday, May 27th. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $102.76.

Rocket Lab Price Performance

The company has a market capitalization of $60.53 billion, a P/E ratio of -326.84 and a beta of 2.48. The firm’s fifty day moving average is $102.45 and its 200 day moving average is $81.77. 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 quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, meeting the consensus estimate of ($0.07). The company had revenue of $200.35 million for the quarter, compared to the consensus estimate of $189.65 million. Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The firm’s revenue was up 63.4% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.12) EPS. As a group, analysts predict that Rocket Lab Corporation will post -0.29 earnings per share for the current fiscal year.

Insider Activity at Rocket Lab

In other Rocket Lab news, Director Alexander R. Slusky sold 100,000 shares of the company’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $118.08, for a total value of $11,808,000.00. Following the transaction, the director directly owned 434,675 shares in the company, valued at $51,326,424. This represents a 18.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Marvin Bradford Clevenger sold 15,549 shares of the company’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $142.57, for a total transaction of $2,216,820.93. Following the completion of the transaction, the insider owned 477,475 shares in the company, valued at $68,073,610.75. This represents a 3.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 485,515 shares of company stock worth $66,909,882 in the last three months. 8.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Rocket Lab

A number of hedge funds have recently added to or reduced their stakes in RKLB. Baillie Gifford & Co. grew its stake in Rocket Lab by 47.2% in the 4th quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock worth $1,245,317,000 after acquiring an additional 5,725,536 shares in the last quarter. Vanguard Group Inc. grew its stake in Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock worth $3,308,033,000 after acquiring an additional 5,610,469 shares in the last quarter. Norges Bank bought a new position in Rocket Lab in the 4th quarter worth about $341,036,000. Alliancebernstein L.P. grew its stake in Rocket Lab by 818.8% in the 3rd quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer’s stock worth $104,929,000 after acquiring an additional 1,951,755 shares in the last quarter. Finally, Capital World Investors boosted its stake 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 valued at $1,130,172,000 after purchasing an additional 1,738,623 shares in the last quarter. 71.78% of the stock is currently 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.