Rocket Lab (NASDAQ:RKLB) Trading Down 7.8% – Time to Sell?

Rocket Lab Corporation (NASDAQ:RKLB) fell 7.8% during mid-day trading on Tuesday . The company traded as low as $56.51 and last traded at $56.57. 13,059,371 shares were traded during mid-day trading, a decline of 37% from the average session volume of 20,736,139 shares. The stock had previously closed at $61.34.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on RKLB. Morgan Stanley raised their price target on shares of Rocket Lab from $20.00 to $68.00 and gave the stock an “equal weight” rating in a report on Monday, October 13th. Stifel Nicolaus increased their price objective on shares of Rocket Lab from $34.00 to $55.00 and gave the stock a “buy” rating in a research note on Tuesday, August 5th. Cantor Fitzgerald increased their price objective on shares of Rocket Lab from $35.00 to $54.00 and gave the stock an “overweight” rating in a research note on Friday, August 8th. KeyCorp increased their price objective on shares of Rocket Lab from $50.00 to $75.00 and gave the stock an “overweight” rating in a research note on Friday, October 17th. Finally, Roth Capital reiterated a “buy” rating on shares of Rocket Lab in a research note on Friday, August 29th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $51.75.

Rocket Lab Trading Down 7.8%

The company’s 50 day moving average price is $55.16 and its two-hundred day moving average price is $41.14. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.67 and a quick ratio of 2.33. The stock has a market capitalization of $27.38 billion, a PE ratio of -125.71 and a beta of 2.16.

Rocket Lab (NASDAQ:RKLB) last issued its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.06). Rocket Lab had a negative return on equity of 48.14% and a negative net margin of 45.87%.The firm had revenue of $144.50 million for the quarter, compared to analysts’ expectations of $135.42 million. During the same period last year, the firm earned ($0.08) earnings per share. Rocket Lab’s revenue for the quarter was up 35.9% on a year-over-year basis. Rocket Lab has set its Q3 2025 guidance at EPS. As a group, analysts expect that Rocket Lab Corporation will post -0.38 earnings per share for the current year.

Insider Activity at Rocket Lab

In other Rocket Lab news, insider Frank Klein sold 45,535 shares of Rocket Lab stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $48.97, for a total transaction of $2,229,848.95. Following the completion of the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 transaction of $70,026,547.50. Following the sale, the chief executive officer owned 2,500,000 shares of the company’s stock, valued at $121,875,000. This represents a 36.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 5,406,361 shares of company stock valued at $267,483,973 over the last ninety days. Corporate insiders own 11.90% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

Several institutional investors have recently bought and sold shares of RKLB. Vanguard Group Inc. grew its holdings in shares of Rocket Lab by 10.6% during the first quarter. Vanguard Group Inc. now owns 40,029,546 shares of the rocket manufacturer’s stock worth $715,728,000 after buying an additional 3,833,969 shares in the last quarter. Baillie Gifford & Co. grew its holdings in shares of Rocket Lab by 176.1% during the third quarter. Baillie Gifford & Co. now owns 12,125,910 shares of the rocket manufacturer’s stock worth $580,952,000 after buying an additional 7,734,788 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Rocket Lab by 67.0% during the second quarter. Invesco Ltd. now owns 6,242,304 shares of the rocket manufacturer’s stock worth $223,287,000 after buying an additional 2,504,054 shares in the last quarter. Kingstone Capital Partners Texas LLC purchased a new stake in shares of Rocket Lab during the second quarter worth about $192,918,000. Finally, Norges Bank purchased a new stake in shares of Rocket Lab during the second quarter worth about $164,751,000. 71.78% of the stock is owned by institutional investors and hedge funds.

About Rocket Lab

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.