Cantor Fitzgerald Has Lowered Expectations for Rocket Lab (NASDAQ:RKLB) Stock Price

Rocket Lab (NASDAQ:RKLB) had its price target decreased by Cantor Fitzgerald from $122.00 to $111.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm currently has an “overweight” rating on the rocket manufacturer’s stock. Cantor Fitzgerald‘s target price would suggest a potential upside of 88.58% from the stock’s previous close.

A number of other research analysts have also commented on the stock. TD Cowen restated a “buy” rating and set a $90.00 price target on shares of Rocket Lab in a research report on Thursday, October 15th. Piper Sandler lowered their price objective on Rocket Lab from $83.00 to $58.00 and set a “neutral” rating on the stock in a research report on Tuesday. Barclays began coverage on Rocket Lab in a research report on Friday, October 9th. They issued an “overweight” rating and a $85.00 price objective on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Rocket Lab in a research note on Thursday, October 15th. Finally, Citizens Jmp reduced their target price on Rocket Lab from $130.00 to $90.00 and set a “market outperform” rating for the company in a research report on Friday, October 16th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $100.25.

Rocket Lab Price Performance

RKLB stock opened at $58.86 on Tuesday. The firm has a 50 day moving average of $62.45 and a 200-day moving average of $78.80. The firm has a market capitalization of $35.22 billion, a P/E ratio of -217.99 and a beta of 3.15. Rocket Lab has a 12 month low of $37.57 and a 12 month high of $151.00. The company has a current ratio of 5.48, a quick ratio of 4.98 and a debt-to-equity ratio of 0.01.

Rocket Lab (NASDAQ:RKLB) last posted its earnings results on Monday, November 9th. The rocket manufacturer reported ($0.12) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.05). Rocket Lab had a negative return on equity of 6.48% and a negative net margin of 21.51%. The firm had revenue of $267.83 million for the quarter, compared to the consensus estimate of $257.21 million. As a group, sell-side analysts predict that Rocket Lab will post -0.20 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rocket Lab news, insider Frank Klein sold 45,692 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $69.63, for a total value of $3,181,533.96. Following the completion of the transaction, the insider owned 961,295 shares of the company’s stock, valued at $66,934,970.85. The trade was a 4.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Adam Spice sold 140,157 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $70.82, for a total transaction of $9,925,918.74. Following the completion of the transaction, the chief financial officer directly owned 1,155,967 shares in the company, valued at $81,865,582.94. The trade was a 10.81% 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. Over the last quarter, insiders have sold 551,832 shares of company stock worth $34,940,037. 8.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Banco Santander S.A. increased its position in shares of Rocket Lab by 21.8% during the 3rd quarter. Banco Santander S.A. now owns 20,226 shares of the rocket manufacturer’s stock valued at $1,409,000 after purchasing an additional 3,616 shares during the last quarter. HighTower Advisors LLC raised its holdings in shares of Rocket Lab by 15.1% during the 3rd quarter. HighTower Advisors LLC now owns 125,749 shares of the rocket manufacturer’s stock valued at $8,762,000 after buying an additional 16,523 shares in the last quarter. Western Wealth Management LLC lifted its position in Rocket Lab by 57.8% in the 3rd quarter. Western Wealth Management LLC now owns 6,788 shares of the rocket manufacturer’s stock worth $473,000 after buying an additional 2,485 shares during the last quarter. Silver Oak Securities Incorporated lifted its position in Rocket Lab by 24.6% in the 3rd quarter. Silver Oak Securities Incorporated now owns 7,160 shares of the rocket manufacturer’s stock worth $499,000 after buying an additional 1,415 shares during the last quarter. Finally, Thoroughbred Financial Services LLC boosted its stake in Rocket Lab by 12.5% in the third quarter. Thoroughbred Financial Services LLC now owns 9,979 shares of the rocket manufacturer’s stock worth $695,000 after buying an additional 1,108 shares in the last quarter. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Rocket Lab

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Revenue reached a record $267.8 million, up 72.7% year over year and above estimates. Rocket Lab also reported positive GAAP operating cash flow and a record backlog that grew 52% sequentially to about $3.57 billion. Management forecast record fourth-quarter revenue, with a midpoint of roughly $280 million, and gross-margin expansion. Rocket Lab Q3 financial results
• Positive Sentiment: Neutron secured more than $515 million in launch contracts during the quarter, bringing its backlog to 16 missions; the stated base launch price rose to $70 million. The deals point to customer demand ahead of the rocket’s debut. Neutron launch deals
• Neutral Sentiment: NASA selected Rocket Lab for lunar delivery work under its Commercial Lunar Payload Services program, alongside other providers. The awards offer potential future work, but the overall contract pool is shared among multiple companies. Rocket Lab selected for NASA lunar delivery contracts
• Negative Sentiment: The quarterly loss was wider than expected: GAAP loss per share was $0.12 versus the $0.07 loss analysts had forecast. Investors also focused on Neutron’s maiden launch being pushed to 2027 and the associated development costs, which may weigh on near-term profitability despite the strong sales outlook. Rocket Lab shares dip after earnings miss

About Rocket Lab

Rocket Lab is a space company that provides launch services and spacecraft and satellite systems for commercial, civil, and national security customers. Founded in 2006 by Peter Beck, the company operates internationally, with headquarters in Long Beach, California, and launch operations in New Zealand and the United States.

Its launch business centers on Electron, a small orbital rocket designed to carry satellites to space, and HASTE, a suborbital vehicle used for hypersonic test missions.