Rocket Lab (NASDAQ:RKLB) Shares Down 6% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB)’s share price was down 6% during trading on Friday . The stock traded as low as $73.26 and last traded at $72.5570. Approximately 3,740,834 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 21,028,160 shares. The stock had previously closed at $77.18.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Stifel Nicolaus lifted their price target on Rocket Lab from $75.00 to $85.00 and gave the stock a “buy” rating in a report on Monday. Roth Capital reissued a “buy” rating and set a $75.00 target price on shares of Rocket Lab in a report on Tuesday, November 11th. Citigroup reissued a “market perform” rating on shares of Rocket Lab in a research report on Wednesday, November 12th. Cantor Fitzgerald restated an “overweight” rating on shares of Rocket Lab in a research note on Wednesday, December 3rd. Finally, KeyCorp upped their target price on Rocket Lab from $50.00 to $75.00 and gave the company an “overweight” rating in a research report on Friday, October 17th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $61.25.

Rocket Lab Stock Performance

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 company has a market capitalization of $38.55 billion, a P/E ratio of -190.30 and a beta of 2.20. The company has a fifty day moving average price of $55.27 and a two-hundred day moving average price of $48.43.

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

Insider Activity

In other Rocket Lab news, CEO Peter Beck sold 1,560,254 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $57.47, for a total value of $89,667,797.38. Following the completion of the sale, the chief executive officer owned 939,746 shares of the company’s stock, valued at approximately $54,007,202.62. This trade represents a 62.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Nina Armagno sold 27,314 shares of Rocket Lab stock in a transaction on Friday, December 19th. The shares were sold at an average price of $68.21, for a total transaction of $1,863,087.94. Following the completion of the sale, the director directly owned 108,940 shares of the company’s stock, valued at approximately $7,430,797.40. The trade was a 20.05% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 2,729,485 shares of company stock worth $151,832,870. Company insiders own 11.90% of the company’s stock.

Institutional Trading of Rocket Lab

Institutional investors and hedge funds have recently modified their holdings of the stock. Kingstone Capital Partners Texas LLC bought a new position in Rocket Lab in the second quarter worth about $192,918,000. Sender Co & Partners Inc. purchased a new position in shares of Rocket Lab in the 1st quarter worth approximately $621,000. Connor Clark & Lunn Investment Management Ltd. grew its position in shares of Rocket Lab by 44.7% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 992,777 shares of the rocket manufacturer’s stock worth $35,512,000 after buying an additional 306,713 shares during the last quarter. Orion Porfolio Solutions LLC bought a new position in shares of Rocket Lab during the 2nd quarter worth approximately $1,009,000. Finally, McGuire Investment Group LLC raised its stake in shares of Rocket Lab by 91.3% during the 2nd quarter. McGuire Investment Group LLC now owns 196,107 shares of the rocket manufacturer’s stock worth $7,015,000 after acquiring an additional 93,613 shares in the last quarter. 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.