Rocket Lab (NASDAQ:RKLB) Trading Down 7.8% – Time to Sell?

Rocket Lab Corporation (NASDAQ:RKLB)’s share price dropped 7.8% during mid-day trading on Tuesday . The company traded as low as $56.51 and last traded at $56.57. Approximately 13,059,371 shares traded hands during mid-day trading, a decline of 37% from the average daily volume of 20,736,139 shares. The stock had previously closed at $61.34.

Analysts Set New Price Targets

A number of research analysts have weighed in on RKLB shares. Roth Capital reaffirmed a “buy” rating on shares of Rocket Lab in a research report on Friday, August 29th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rocket Lab in a research report on Wednesday, October 8th. Citigroup reaffirmed a “buy” rating and issued a $50.00 price target (up from $33.00) on shares of Rocket Lab in a report on Monday, July 14th. Craig Hallum started coverage on shares of Rocket Lab in a report on Monday, July 28th. They issued a “hold” rating and a $51.00 price target on the stock. Finally, Baird R W raised shares of Rocket Lab to a “strong-buy” rating in a report on Thursday, October 16th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $51.75.

Rocket Lab Stock Down 7.8%

The firm’s 50-day moving average price is $55.16 and its 200 day moving average price is $41.14. The firm has a market cap of $27.38 billion, a P/E ratio of -125.71 and a beta of 2.16. The company has a quick ratio of 2.33, a current ratio of 2.67 and a debt-to-equity ratio of 0.60.

Rocket Lab (NASDAQ:RKLB) last announced its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.06). The company had revenue of $144.50 million during the quarter, compared to the consensus estimate of $135.42 million. Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The business’s quarterly revenue was up 35.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.08) EPS. Rocket Lab has set its Q3 2025 guidance at EPS. As a group, research analysts expect that Rocket Lab Corporation will post -0.38 earnings per share for the current year.

Insider Transactions at Rocket Lab

In other Rocket Lab news, CFO Adam C. Spice sold 874,588 shares of the company’s stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $48.01, for a total value of $41,988,969.88. Following the completion of the sale, the chief financial officer directly owned 2,057,889 shares of the company’s stock, valued at approximately $98,799,250.89. This represents a 29.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Peter Beck sold 1,436,442 shares of the company’s stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $48.75, for a total transaction of $70,026,547.50. Following the completion of the sale, the chief executive officer directly owned 2,500,000 shares of the company’s stock, valued at $121,875,000. The trade was a 36.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 5,406,361 shares of company stock worth $267,483,973 over the last ninety days. Insiders own 11.90% of the company’s stock.

Institutional Investors Weigh In On Rocket Lab

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in Rocket Lab by 10.6% in the 1st quarter. Vanguard Group Inc. now owns 40,029,546 shares of the rocket manufacturer’s stock valued at $715,728,000 after acquiring an additional 3,833,969 shares during the last quarter. Baillie Gifford & Co. lifted its holdings in Rocket Lab by 176.1% in the 3rd quarter. Baillie Gifford & Co. now owns 12,125,910 shares of the rocket manufacturer’s stock valued at $580,952,000 after acquiring an additional 7,734,788 shares during the last quarter. Invesco Ltd. lifted its holdings in Rocket Lab by 67.0% in the 2nd quarter. Invesco Ltd. now owns 6,242,304 shares of the rocket manufacturer’s stock valued at $223,287,000 after acquiring an additional 2,504,054 shares during the last quarter. Kingstone Capital Partners Texas LLC acquired a new stake in Rocket Lab in the 2nd quarter valued at about $192,918,000. Finally, Norges Bank purchased a new stake in Rocket Lab during the second quarter valued at about $164,751,000. 71.78% of the stock is owned by institutional investors and hedge funds.

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.