Rocket Lab (NASDAQ:RKLB) Shares Down 9.5% – Should You Sell?

Rocket Lab Corporation (NASDAQ:RKLB) shares traded down 9.5% during mid-day trading on Thursday . The stock traded as low as $39.32 and last traded at $39.48. 23,797,823 shares changed hands during mid-day trading, an increase of 14% from the average session volume of 20,789,744 shares. The stock had previously closed at $43.62.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on RKLB. Craig Hallum started coverage on Rocket Lab in a research note on Monday, July 28th. They set a “hold” rating and a $51.00 target price for the company. Cantor Fitzgerald raised their price objective on shares of Rocket Lab from $35.00 to $54.00 and gave the stock an “overweight” rating in a report on Friday, August 8th. Morgan Stanley cut their price objective on shares of Rocket Lab from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Wednesday, November 12th. Citigroup reiterated a “market perform” rating on shares of Rocket Lab in a report on Wednesday, November 12th. Finally, Roth Capital reissued a “buy” rating and issued a $75.00 price target on shares of Rocket Lab in a research note on Tuesday, November 11th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Rocket Lab presently has a consensus rating of “Moderate Buy” and a consensus target price of $58.17.

Rocket Lab Trading Down 9.5%

The company has a debt-to-equity ratio of 0.32, a current ratio of 3.18 and a quick ratio of 2.83. The business’s 50-day moving average is $55.68 and its two-hundred day moving average is $43.33. The firm has a market cap of $19.11 billion, a P/E ratio of -103.89 and a beta of 2.16.

Rocket Lab (NASDAQ:RKLB) last posted its quarterly earnings data on Monday, November 10th. The rocket manufacturer reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.02. The company had revenue of $155.08 million during the quarter, compared to the consensus estimate of $152.45 million. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. The company’s quarterly revenue was up 48.0% on a year-over-year basis. During the same period in the prior year, the business posted ($0.10) EPS. Rocket Lab has set its Q4 2025 guidance at EPS. As a group, analysts predict that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Matthew Ocko sold 1,873,097 shares of the stock in a transaction that occurred on Tuesday, September 16th. The stock was sold at an average price of $48.20, for a total value of $90,283,275.40. Following the completion of the sale, the director owned 541,526 shares of the company’s stock, valued at approximately $26,101,553.20. This represents a 77.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Adam C. Spice sold 874,588 shares of the firm’s stock in a transaction on Friday, September 19th. The shares were sold at an average price of $48.01, for a total transaction of $41,988,969.88. Following the completion of the transaction, the chief financial officer directly owned 2,057,889 shares of the company’s stock, valued at $98,799,250.89. This represents a 29.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 5,406,361 shares of company stock valued at $267,483,973. Corporate insiders own 11.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Capital Investment Advisory Services LLC raised its holdings in shares of Rocket Lab by 2.1% in the 3rd quarter. Capital Investment Advisory Services LLC now owns 10,432 shares of the rocket manufacturer’s stock valued at $500,000 after purchasing an additional 212 shares during the period. Truist Financial Corp increased its position in Rocket Lab by 1.9% during the second quarter. Truist Financial Corp now owns 12,352 shares of the rocket manufacturer’s stock worth $442,000 after buying an additional 234 shares during the last quarter. ORG Partners LLC raised its stake in Rocket Lab by 22.1% in the third quarter. ORG Partners LLC now owns 1,337 shares of the rocket manufacturer’s stock valued at $64,000 after buying an additional 242 shares during the period. Parvin Asset Management LLC lifted its position in shares of Rocket Lab by 7.2% in the second quarter. Parvin Asset Management LLC now owns 3,725 shares of the rocket manufacturer’s stock valued at $133,000 after buying an additional 250 shares during the last quarter. Finally, Independent Advisor Alliance boosted its stake in shares of Rocket Lab by 6.0% during the 3rd quarter. Independent Advisor Alliance now owns 6,478 shares of the rocket manufacturer’s stock worth $310,000 after acquiring an additional 368 shares during the period. Institutional investors own 71.78% of the company’s stock.

Rocket Lab Company Profile

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.