Rocket Lab Corporation (NASDAQ:RKLB – Get Free Report) shares dropped 2% on Tuesday . The stock traded as low as $66.48 and last traded at $66.91. Approximately 14,831,200 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 23,655,711 shares. The stock had previously closed at $68.28.
Trending Headlines about Rocket Lab
Here are the key news stories impacting Rocket Lab this week:
- Positive Sentiment: Rocket Lab’s growth story remains supported by record second-quarter revenue of approximately $234 million, up nearly 62% year over year, and a backlog reported at about $2.36 billion. Recent defense and government contract wins, including participation in the $981 million NITE-STAR program, continue to expand its space-infrastructure opportunity. Can NITE-STAR Expand Rocket Lab’s Space Infrastructure Opportunity?
- Positive Sentiment: Investors continue to view Neutron as a major potential catalyst. CEO Peter Beck said a successful launch could put Rocket Lab on a path toward positive adjusted EBITDA as soon as the following quarter, while analysts’ recent price targets have a median of $120. The company’s Electron launch cadence and Space Systems business provide additional support while Neutron is developed. Rocket Lab CEO Says Successful Neutron Launch Could Put It on Track for Positive EBITDA
- Neutral Sentiment: Institutional sentiment is mixed: 787 investors increased positions in the latest quarter, while 361 reduced them. Large purchases by Invesco, JPMorgan and Goldman Sachs were offset by sizable reductions from Baillie Gifford, Capital International and other funds.
- Negative Sentiment: Technical conditions are weighing on RKLB. The stock has pulled back, remains below its 50-day and 200-day moving averages, and has experienced failed breakouts and resistance tests. This has prompted bearish options commentary, including a proposed bear put spread. Rocket Lab Stock Bear Put Spread
- Negative Sentiment: Insider activity is a notable overhang: insiders made 106 open-market sales and no purchases during the past six months, including substantial sales by CEO Peter Beck and other senior executives. Investors are also focused on Neutron delays, launch-execution risk and the company’s continuing losses.
Analyst Upgrades and Downgrades
Several equities analysts have commented on the stock. Citigroup reiterated a “market outperform” rating on shares of Rocket Lab in a research report on Tuesday, July 28th. Morgan Stanley restated an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, July 8th. Roth Capital set a $110.00 price target on shares of Rocket Lab in a report on Tuesday, August 11th. Stifel Nicolaus set a $132.00 price target on Rocket Lab in a research report on Thursday, June 4th. Finally, TD Cowen boosted their price objective on Rocket Lab from $90.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $110.65.
Rocket Lab Price Performance
The company has a current ratio of 5.48, a quick ratio of 4.98 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $40.04 billion, a PE ratio of -247.81 and a beta of 2.60. The stock’s 50-day moving average is $81.04 and its two-hundred day moving average is $85.20.
Rocket Lab (NASDAQ:RKLB – Get Free Report) last announced its earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.02). Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. The business had revenue of $234.07 million for the quarter, compared to analysts’ expectations of $231.62 million. On average, equities analysts predict that Rocket Lab Corporation will post -0.2 EPS for the current year.
Insider Buying and Selling at Rocket Lab
In other Rocket Lab news, insider Marvin Bradford Clevenger sold 3,500 shares of the firm’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $146.67, for a total transaction of $513,345.00. Following the transaction, the insider directly owned 473,975 shares in the company, valued at $69,517,913.25. This trade represents a 0.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Frank Klein sold 36,860 shares of the firm’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $147.42, for a total value of $5,433,901.20. Following the transaction, the insider owned 1,006,987 shares in the company, valued at approximately $148,450,023.54. This represents a 3.53% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 3,597,943 shares of company stock valued at $329,430,096. 8.40% of the stock is owned by corporate insiders.
Institutional Trading of Rocket Lab
Several hedge funds and other institutional investors have recently made changes to their positions in the business. California State Teachers Retirement System grew its stake in shares of Rocket Lab by 12,984.2% during the second quarter. California State Teachers Retirement System now owns 96,179,045 shares of the rocket manufacturer’s stock worth $9,776,600,000 after acquiring an additional 95,443,970 shares during the last quarter. Vanguard Group Inc. boosted its stake in Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock worth $3,308,033,000 after purchasing an additional 5,610,469 shares in the last quarter. BlackRock Inc. acquired a new stake in Rocket Lab in the 2nd quarter worth approximately $4,124,970,000. Capital World Investors grew its position in Rocket Lab by 12.0% during 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 last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in Rocket Lab during the 2nd quarter worth approximately $245,764,000. Hedge funds and other institutional investors own 71.78% of the company’s stock.
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.
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