Rocket Lab (NASDAQ:RKLB) Stock Price Down 10.2% – Here’s What Happened

Rocket Lab Corporation (NASDAQ:RKLB)’s stock price traded down 10.2% on Wednesday . The stock traded as low as $84.85 and last traded at $85.41. 25,786,208 shares traded hands during trading, an increase of 4% from the average daily volume of 24,817,463 shares. The stock had previously closed at $95.12.

Key Rocket Lab News

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

• Positive Sentiment: NASA chose Rocket Lab for three Electron launches beginning in 2027, including the PolSIR and TSIS-2 missions, reinforcing the company’s credibility in small-launch services. NASA Selects Rocket Lab to Launch Sun, Earth Sciences Missions
• Positive Sentiment: The contract adds to Rocket Lab’s growing government and defense momentum, following recent attention on its record-fast response to a U.S. Space Force mission and expanding backlog. Rocket Lab’s NASA Win Tests Key Support After Sharp Pullback
• Neutral Sentiment: Analysts have remained constructive on RKLB, with recent upgrades and price targets suggesting Wall Street still sees upside if execution stays strong. Rocket Lab (RKLB) Gets a Major Upgrade; Could a New Space Race Be Taking Shape?
• Negative Sentiment: The stock is still well below its recent highs, so traders may see the NASA win as helpful but not enough on its own to reverse the broader pullback without more contract wins or execution catalysts. Rocket Lab’s NASA Win Tests Key Support After Sharp Pullback

Analysts Set New Price Targets

RKLB has been the topic of several recent analyst reports. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Rocket Lab from $73.00 to $120.00 and gave the company a “buy” rating in a research report on Tuesday, May 12th. BTIG Research reaffirmed a “hold” rating on shares of Rocket Lab in a report on Tuesday, May 12th. Wells Fargo & Company started coverage on Rocket Lab in a research note on Wednesday, April 1st. They issued an “equal weight” rating and a $60.00 price target for the company. KGI Securities initiated coverage on Rocket Lab in a report on Thursday, June 11th. They set a “neutral” rating and a $105.00 price target on the stock. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, May 27th. Three analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $102.76.

Rocket Lab Price Performance

The firm’s fifty day simple moving average is $107.26 and its 200 day simple moving average is $84.85. The firm has a market cap of $48.59 billion, a P/E ratio of -262.36 and a beta of 2.49. 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 earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.07). The firm had revenue of $200.35 million for the quarter, compared to analysts’ expectations of $189.65 million. Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The business’s revenue was up 63.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.12) earnings per share. As a group, analysts forecast that Rocket Lab Corporation will post -0.29 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Alexander R. Slusky sold 40,000 shares of the company’s stock in a transaction that occurred on 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 sale, the director directly owned 334,675 shares of the company’s stock, valued at $41,365,830. This represents a 10.68% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Arjun Kampani sold 88,000 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $107.98, for a total value of $9,502,240.00. Following the sale, the senior vice president directly owned 264,705 shares in the company, valued at $28,582,845.90. This trade represents a 24.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 573,515 shares of company stock worth $76,412,122. Insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

Institutional investors and hedge funds have recently made changes to their positions in the business. Baillie Gifford & Co. raised its position in shares of Rocket Lab by 47.2% during the 4th quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock valued at $1,245,317,000 after buying an additional 5,725,536 shares in the last quarter. Vanguard Group Inc. raised its position in Rocket Lab by 13.4% during the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock valued at $3,308,033,000 after purchasing an additional 5,610,469 shares during the period. Norges Bank bought a new stake in shares of Rocket Lab in the 4th quarter valued at approximately $341,036,000. Alliancebernstein L.P. lifted its stake in shares of Rocket Lab by 818.8% in the 3rd quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer’s stock valued at $104,929,000 after purchasing an additional 1,951,755 shares during the last quarter. Finally, Capital World Investors boosted its holdings in shares of Rocket Lab by 12.0% in the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock worth $1,130,172,000 after purchasing an additional 1,738,623 shares during the period. 71.78% of the stock is owned by hedge funds and other institutional investors.

About Rocket Lab

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.