Rocket Lab (NASDAQ:RKLB) Shares Down 6.6% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB)’s stock price traded down 6.6% during trading on Thursday. The stock traded as low as $49.69 and last traded at $55.25. 47,868,544 shares traded hands during mid-day trading, an increase of 107% from the average daily volume of 23,094,160 shares. The stock had previously closed at $59.18.

Rocket Lab News Roundup

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

• Positive Sentiment: Rocket Lab continues to benefit from strong existing operations, including its Electron launch business, satellite systems activities and defense contracts. The company reported record second-quarter revenue of approximately $234 million, up 62% year over year, and maintains a backlog of roughly $2.36 billion. Rocket Lab Still Has a $2.4B Backlog While Neutron Waits
• Positive Sentiment: Despite reducing estimates, several analysts remain bullish. Citizens JMP lowered its target to $90 from $130 but retained a Market Outperform rating; TD Cowen maintained a Buy rating and $90 target, while Cantor Fitzgerald and Roth Capital also remained constructive. Rocket Lab analyst coverage
• Neutral Sentiment: Management said the manufacturing issue has been addressed and that additional testing is expected before a launch date is finalized. The company is prioritizing reliability and quality, but investors must now wait longer for evidence that Neutron can expand Rocket Lab into the larger medium-lift launch market. Rocket Lab discusses Neutron program update and manufacturing challenges
• Negative Sentiment: The delay is especially damaging because Neutron is central to Rocket Lab’s growth and planned path toward adjusted EBITDA profitability. Repeated schedule slips are increasing execution concerns, extending cash-burn risk and postponing potential launch revenue. Rocket Lab pushes Neutron rocket debut flight to 2027
• Negative Sentiment: Technical momentum has also weakened after the sell-off pushed RKLB below the closely watched $60 support level and below its major moving averages. Although Wall Street’s consensus remains broadly positive, lower price targets and renewed skepticism have added pressure to the stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on RKLB shares. Piper Sandler began coverage on shares of Rocket Lab in a research report on Wednesday, July 15th. They set a “neutral” rating and a $83.00 price objective on the stock. Citigroup restated a “market outperform” rating on shares of Rocket Lab in a report on Friday. Morgan Stanley reaffirmed an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, July 8th. Needham & Company LLC reiterated a “buy” rating and issued a $120.00 target price on shares of Rocket Lab in a research report on Friday. Finally, Bank of America lowered their price target on shares of Rocket Lab from $115.00 to $110.00 and set a “buy” rating on the stock in a report on Monday, August 31st. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $102.05.

Rocket Lab Stock Down 8.0%

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 business’s fifty day moving average price is $68.86 and its two-hundred day moving average price is $84.06. The firm has a market cap of $30.42 billion, a P/E ratio of -188.29 and a beta of 2.93.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings data on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates 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 company had revenue of $234.07 million during the quarter, compared to the consensus estimate of $231.62 million. As a group, equities research analysts anticipate that Rocket Lab Corporation will post -0.20 EPS for the current year.

Insider Transactions at Rocket Lab

In other Rocket Lab news, SVP Arjun Kampani sold 6,034 shares of the business’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $66.65, for a total value of $402,166.10. Following the sale, the senior vice president owned 250,917 shares of the company’s stock, valued at $16,723,618.05. The trade was a 2.35% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Marvin Clevenger sold 15,051 shares of Rocket Lab 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 $1,048,001.13. Following the sale, the insider directly owned 458,924 shares in the company, valued at $31,954,878.12. The trade was a 3.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last three months, insiders have sold 400,749 shares of company stock worth $26,964,474. 8.40% of the stock is currently owned by company insiders.

Institutional Trading of Rocket Lab

Several hedge funds have recently modified their holdings of RKLB. Reflection Asset Management acquired a new position in Rocket Lab during the 4th quarter worth $30,000. Meeder Asset Management Inc. acquired a new stake in shares of Rocket Lab in the 2nd quarter valued at $30,000. Highland Investment Advisors LLC acquired a new stake in shares of Rocket Lab in the 2nd quarter valued at $30,000. NBH Bank bought a new stake in shares of Rocket Lab during the second quarter worth $30,000. Finally, Cherry Tree Wealth Management LLC bought a new stake in Rocket Lab during the 2nd quarter worth about $32,000. 71.78% of the stock is owned by institutional investors.

About Rocket Lab

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab’s primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.