Rocket Lab (NASDAQ:RKLB) Shares Gap Down – Time to Sell?

Shares of Rocket Lab Corporation (NASDAQ:RKLB) gapped down before the market opened on Thursday . The stock had previously closed at $134.28, but opened at $126.14. Rocket Lab shares last traded at $126.2260, with a volume of 5,727,954 shares trading hands.

Key Rocket Lab News

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

• Positive Sentiment: Rocket Lab won a $90 million Space Force contract, which expands its satellite business into geostationary orbit and adds a meaningful new source of revenue. Article Title
• Positive Sentiment: The company completed its 9th Electron launch for Synspective, underscoring strong execution and a durable commercial launch partnership. Article Title
• Neutral Sentiment: Broader space-stock momentum and renewed interest ahead of SpaceX’s IPO are also lifting sentiment across the sector, including RKLB. Article Title
• Negative Sentiment: Some investors remain wary after Rocket Lab’s recent announcement of a potential $3 billion share-sale program, which raised dilution concerns earlier in the week. Article Title

Wall Street Analysts Forecast Growth

RKLB has been the subject of a number of recent research reports. Cantor Fitzgerald restated an “overweight” rating and set a $85.00 price target on shares of Rocket Lab in a research note on Friday, March 13th. Craig Hallum upgraded shares of Rocket Lab from a “hold” rating to a “buy” rating and set a $98.00 target price for the company in a research note on Friday, May 8th. Wells Fargo & Company assumed coverage on shares of Rocket Lab in a research note on Wednesday, April 1st. They issued an “equal weight” rating and a $60.00 target price for the company. BTIG Research reiterated a “hold” rating on shares of Rocket Lab in a research note on Tuesday, May 12th. Finally, Clear Str upgraded shares of Rocket Lab to a “strong-buy” rating in a research note on Wednesday, March 18th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $97.19.

Rocket Lab Stock Performance

The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47. The stock has a market cap of $78.57 billion, a P/E ratio of -424.25 and a beta of 2.30. The company’s 50 day moving average price is $84.84 and its 200-day moving average price is $73.16.

Rocket Lab (NASDAQ:RKLB) last posted its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The firm had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. During the same quarter in the prior year, the business posted ($0.12) EPS. The business’s revenue was up 63.4% compared to the same quarter last year. Equities analysts forecast that Rocket Lab Corporation will post -0.29 EPS for the current fiscal year.

Insider Buying and Selling

In related news, SVP Arjun Kampani sold 28,761 shares of the business’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $69.59, for a total value of $2,001,477.99. Following the transaction, the senior vice president directly owned 421,699 shares of the company’s stock, valued at approximately $29,346,033.41. The trade was a 6.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Frank Klein sold 44,482 shares of the business’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $69.59, for a total transaction of $3,095,502.38. Following the completion of the transaction, the insider directly owned 1,125,005 shares in the company, valued at $78,289,097.95. This trade represents a 3.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 333,449 shares of company stock worth $28,295,233 in the last ninety days. Corporate insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

A number of hedge funds and other institutional investors have recently made changes to their positions in RKLB. AQR Capital Management LLC boosted its holdings in shares of Rocket Lab by 114.0% in the 1st quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer’s stock worth $3,117,000 after buying an additional 92,849 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Rocket Lab by 1,812.1% in the 1st quarter. NewEdge Advisors LLC now owns 36,807 shares of the rocket manufacturer’s stock worth $658,000 after buying an additional 34,882 shares during the last quarter. Jones Financial Companies Lllp boosted its holdings in shares of Rocket Lab by 53.8% in the 1st quarter. Jones Financial Companies Lllp now owns 15,745 shares of the rocket manufacturer’s stock worth $282,000 after buying an additional 5,507 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Rocket Lab by 13.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 773,548 shares of the rocket manufacturer’s stock worth $13,831,000 after buying an additional 90,758 shares during the last quarter. Finally, Focus Partners Wealth boosted its holdings in shares of Rocket Lab by 1.0% in the 1st quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer’s stock worth $1,206,000 after buying an additional 681 shares during 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.