Rocket Lab (NASDAQ:RKLB) Stock Price Down 5.2% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB) shares were down 5.2% during trading on Tuesday . The company traded as low as $94.89 and last traded at $95.12. Approximately 22,037,395 shares changed hands during mid-day trading, a decline of 11% from the average session volume of 24,775,453 shares. The stock had previously closed at $100.29.

Key Rocket Lab News

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

• Positive Sentiment: Rocket Lab’s record-setting VICTUS HAZE mission showcased its rapid-launch capabilities and strengthened its case as a key defense and national-security space contractor. Rocket Lab Launches Responsive Victus Haze Mission for Space Force
• Positive Sentiment: The mission also demonstrated Rocket Lab’s vertically integrated model and its ability to compress a normally multi-year defense timeline into hours, which could support future contract wins and investor confidence in its space-systems business. Rocket Lab Shatters Responsive Space Record: Launches U.S. Space Force VICTUS HAZE Mission in 16 Hours 42 Minutes
• Positive Sentiment: Analysts and market commentary continue to point to Rocket Lab as a relatively attractive pure-play space stock, helped by recent growth in revenue and its added visibility after joining the Nasdaq-100. Here’s why Rocket Lab stock is ripe for a strong comeback
• Neutral Sentiment: Rocket Lab’s Nasdaq-100 inclusion is still a mixed near-term catalyst: it can boost passive fund demand, but the stock has also seen profit-taking after a strong run-up.
• Neutral Sentiment: The company’s strong quarterly revenue growth and expanding contract activity remain supportive, but investors are still watching execution on future programs like Neutron and broader space-sector sentiment.

Analyst Ratings Changes

Several brokerages recently weighed in on RKLB. New Street Research began coverage on Rocket Lab in a research report on Wednesday, May 13th. They set a “buy” rating and a $150.00 price target for the company. Roth Mkm upped their price objective on Rocket Lab from $90.00 to $100.00 and gave the stock a “buy” rating in a research report on Friday, April 17th. Citigroup reaffirmed an “outperform” rating on shares of Rocket Lab in a research note on Friday, May 8th. Craig Hallum raised shares of Rocket Lab from a “hold” rating to a “buy” rating and set a $98.00 target price for the company in a report on Friday, May 8th. Finally, Citizens Jmp boosted their target price on shares of Rocket Lab from $85.00 to $95.00 and gave the company a “market outperform” rating in a research note on Friday, May 8th. Three 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 given a Sell rating to the stock. According to MarketBeat.com, Rocket Lab currently has an average rating of “Moderate Buy” and an average price target of $102.76.

Rocket Lab Trading Down 5.2%

The stock has a market cap of $55.05 billion, a PE ratio of -297.25 and a beta of 2.48. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47. The company has a 50 day moving average of $106.25 and a two-hundred day moving average of $84.02.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates 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 return on equity of 11.72% and a negative net margin of 26.87%.Rocket Lab’s revenue for the quarter was up 63.4% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.12) earnings per share. Sell-side analysts anticipate that Rocket Lab Corporation will post -0.29 earnings per share for the current fiscal year.

Insider Transactions at Rocket Lab

In other Rocket Lab news, insider Marvin Bradford Clevenger sold 3,500 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $146.67, for a total transaction of $513,345.00. Following the completion of the transaction, the insider directly owned 473,975 shares in the company, valued at approximately $69,517,913.25. This represents a 0.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Frank Klein sold 36,860 shares of the company’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 transaction, the insider 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. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 573,515 shares of company stock worth $76,412,122 in the last ninety days. Company insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

Hedge funds and other institutional investors have recently made changes to their positions in the company. Baillie Gifford & Co. boosted its stake in Rocket Lab by 47.2% during the 4th quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock worth $1,245,317,000 after purchasing an additional 5,725,536 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Rocket Lab by 13.4% in 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. Norges Bank purchased a new position in shares of Rocket Lab in the fourth quarter worth about $341,036,000. Alliancebernstein L.P. boosted its position in Rocket Lab by 818.8% during the third 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 during the last quarter. Finally, Capital World Investors boosted its position in 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 acquiring an additional 1,738,623 shares during the last quarter. Hedge funds and other institutional investors 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.