Rocket Lab USA (NASDAQ:RKLB) Shares Gap Down – Here’s Why

Rocket Lab USA, Inc. (NASDAQ:RKLB) gapped down before the market opened on Monday . The stock had previously closed at $25.57, but opened at $24.30. Rocket Lab USA shares last traded at $25.27, with a volume of 4,530,283 shares traded.

Analysts Set New Price Targets

RKLB has been the subject of a number of recent analyst reports. Citigroup cut their price target on shares of Rocket Lab USA from $35.00 to $33.00 and set a “buy” rating for the company in a research note on Friday, February 28th. TD Cowen upgraded shares of Rocket Lab USA to a “strong-buy” rating in a research note on Monday, February 24th. Morgan Stanley lifted their price target on Rocket Lab USA from $18.00 to $20.00 and gave the stock an “equal weight” rating in a report on Monday, March 10th. Needham & Company LLC reissued a “buy” rating and set a $28.00 price target on shares of Rocket Lab USA in a research report on Tuesday, May 13th. Finally, The Goldman Sachs Group raised their price objective on Rocket Lab USA from $14.35 to $16.00 and gave the company a “neutral” rating in a research report on Monday, May 12th. Five investment analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $23.50.

Rocket Lab USA Trading Up 0.8%

The business has a fifty day moving average price of $20.51 and a 200-day moving average price of $22.69. The company has a quick ratio of 2.16, a current ratio of 2.58 and a debt-to-equity ratio of 0.97. The company has a market cap of $11.79 billion, a P/E ratio of -70.27 and a beta of 2.04.

Rocket Lab USA (NASDAQ:RKLB) last released its quarterly earnings results on Thursday, May 8th. The rocket manufacturer reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.02). The firm had revenue of $122.57 million during the quarter, compared to the consensus estimate of $120.74 million. Rocket Lab USA had a negative net margin of 51.76% and a negative return on equity of 39.47%. The business’s revenue for the quarter was up 32.1% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.09) earnings per share. On average, analysts forecast that Rocket Lab USA, Inc. will post -0.38 earnings per share for the current year.

Insider Activity

In other Rocket Lab USA news, insider Frank Klein sold 44,553 shares of Rocket Lab USA stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $18.18, for a total value of $809,973.54. Following the completion of the sale, the insider now owns 1,419,479 shares in the company, valued at $25,806,128.22. The trade was a 3.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 13.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Van ECK Associates Corp grew its position in Rocket Lab USA by 26.9% during the fourth quarter. Van ECK Associates Corp now owns 166,369 shares of the rocket manufacturer’s stock worth $4,237,000 after buying an additional 35,293 shares in the last quarter. AlphaCentric Advisors LLC grew its holdings in shares of Rocket Lab USA by 66.7% during the 4th quarter. AlphaCentric Advisors LLC now owns 25,000 shares of the rocket manufacturer’s stock worth $637,000 after purchasing an additional 10,000 shares in the last quarter. Stratos Wealth Partners LTD. acquired a new stake in shares of Rocket Lab USA during the 4th quarter worth $1,281,000. Empowered Funds LLC bought a new position in shares of Rocket Lab USA in the fourth quarter worth $288,000. Finally, Zweig DiMenna Associates LLC acquired a new position in Rocket Lab USA in the fourth quarter valued at about $4,725,000. Institutional investors and hedge funds own 71.78% of the company’s stock.

About Rocket Lab USA

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.