Rocket Lab (NASDAQ:RKLB) Stock Price Down 4.2% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB) was down 4.2% during trading on Tuesday . The stock traded as low as $103.07 and last traded at $104.63. 27,697,980 shares changed hands during mid-day trading, an increase of 14% from the average daily volume of 24,324,975 shares. The stock had previously closed at $109.25.

Key Rocket Lab News

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

• Positive Sentiment: Rocket Lab was added to the Nasdaq-100, a move that could force passive index funds and ETFs to buy shares and boost demand. Rocket Lab (RKLB) to Join Nasdaq-100 Index on June 22
• Positive Sentiment: The company’s latest operating results remain strong, with record quarterly revenue and a $2.2 billion backlog, supporting the long-term growth story for Rocket Lab. Rocket Lab: The End Of The SpaceX Proxy
• Positive Sentiment: Rocket Lab also cleared a key Space Development Agency review, reinforcing confidence in its defense and government programs. RKLB Stock Jumps Overnight: Retail Unfazed By Launch Delay Of Rocket Lab’s 90th Electron Mission
• Neutral Sentiment: Analyst commentary has been mixed, with some firms still highlighting Rocket Lab’s backlog, vertical integration and defense exposure, while others have downgraded the stock after the big rally. RKLB vs. ASTS: Analysts Say One Space Stock Looks Stronger Near-Term
• Negative Sentiment: The main reason for the stock’s decline is profit-taking after an outsized rally, with investors rotating out following the recent surge in RKLB shares. Rocket Lab (RKLB) Stock Has Plunged 30% from Highs, Here’s Why
• Negative Sentiment: Some market commentary argues the stock is still expensive on valuation despite the strong fundamentals, which may be limiting upside near term. Jim Cramer on Rocket Lab

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Needham & Company LLC upped their price target on Rocket Lab from $95.00 to $120.00 and gave the company a “buy” rating in a research note on Monday, May 11th. TD Cowen lifted their price objective on Rocket Lab from $90.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Cantor Fitzgerald restated an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, May 27th. Citigroup reaffirmed an “outperform” rating on shares of Rocket Lab in a research note on Friday, May 8th. Finally, Clear Str upgraded Rocket Lab to a “strong-buy” rating in a report on Wednesday, March 18th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $102.76.

Rocket Lab Stock Performance

The company has a quick ratio of 4.02, a current ratio of 4.47 and a debt-to-equity ratio of 0.02. The stock has a market cap of $62.07 billion, a price-to-earnings ratio of -335.12 and a beta of 2.49. The stock’s fifty day moving average is $104.00 and its 200-day moving average is $82.68.

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

Insider Buying and Selling at Rocket Lab

In other Rocket Lab news, Director Alexander R. Slusky sold 40,000 shares of Rocket Lab stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $123.60, for a total transaction of $4,944,000.00. Following the transaction, the director directly owned 334,675 shares in the company, valued at approximately $41,365,830. The trade was a 10.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Frank Klein sold 36,860 shares of the business’s stock in a transaction dated 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 completion of the transaction, the insider directly owned 1,006,987 shares of the company’s stock, valued at approximately $148,450,023.54. The trade was a 3.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 485,515 shares of company stock worth $66,909,882 in the last three months. 8.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Rocket Lab

Several institutional investors and hedge funds have recently modified their holdings of the business. Baillie Gifford & Co. raised its holdings in Rocket Lab by 47.2% during the 4th quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock worth $1,245,317,000 after buying an additional 5,725,536 shares during the period. Vanguard Group Inc. increased its position in shares of Rocket Lab by 13.4% during the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock worth $3,308,033,000 after acquiring an additional 5,610,469 shares in the last quarter. Norges Bank bought a new stake in shares of Rocket Lab during the fourth quarter worth $341,036,000. Alliancebernstein L.P. raised its holdings in shares of Rocket Lab by 818.8% during the third quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer’s stock worth $104,929,000 after acquiring an additional 1,951,755 shares during the period. Finally, Capital World Investors raised its holdings in shares of Rocket Lab by 12.0% during the fourth quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock worth $1,130,172,000 after acquiring an additional 1,738,623 shares during the period. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Rocket Lab Company Profile

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.