Rocket Lab (NASDAQ:RKLB) Stock Breaks Above 50-Day Moving Average on Disappointing Earnings

Rocket Lab Corporation (NASDAQ:RKLB) passed above its 50 day moving average during trading on Tuesday after the company announced better than expected quarterly earnings. The stock has a 50 day moving average of $62.42 and traded as high as $63.77. Rocket Lab shares last traded at $62.71, with a volume of 31,978,836 shares changing hands.

The rocket manufacturer reported ($0.12) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.05). Rocket Lab had a negative net margin of 25.73% and a negative return on equity of 7.71%. The firm had revenue of $267.83 million for the quarter, compared to analyst estimates of $257.21 million.

Rocket Lab News Roundup

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

• Positive Sentiment: Q3 revenue rose 72.7% year over year to $267.8 million, beating estimates. Backlog expanded 52% sequentially to a record $3.57 billion, reinforcing demand for Rocket Lab’s launch and space-systems business. Q3 results and outlook
• Positive Sentiment: Fourth-quarter revenue guidance of $270 million to $290 million came in above analyst expectations. The company also secured more than $515 million in Neutron launch contracts during Q3, bringing the rocket’s backlog to 16 missions and raising its base launch price to $70 million. Neutron launch contracts
• Neutral Sentiment: Some analysts remain constructive, citing Rocket Lab’s competitive position and growing backlog, although several lowered price targets after the results. Analyst commentary
• Negative Sentiment: The GAAP loss of $0.12 per share was wider than the roughly $0.07 loss analysts expected, while the company continued to forecast an adjusted EBITDA loss for Q4. The earnings miss appears to have overshadowed revenue growth and contributed to pressure on the shares. Q3 earnings reaction
• Negative Sentiment: Neutron’s first launch is now expected no earlier than 2027, delaying a key future growth catalyst and adding uncertainty around development costs and execution. Neutron delay and investor reaction

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. TD Cowen reaffirmed a “buy” rating and issued a $90.00 price target on shares of Rocket Lab in a report on Thursday, October 15th. Citigroup reiterated a “market outperform” rating on shares of Rocket Lab in a research report on Friday, October 16th. KGI Securities upgraded Rocket Lab from a “neutral” rating to an “outperform” rating and set a $107.00 target price on the stock in a report on Monday, July 27th. Piper Sandler cut their price objective on Rocket Lab from $83.00 to $58.00 and set a “neutral” rating for the company in a report on Tuesday. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $120.00 price objective on shares of Rocket Lab in a research report on Friday, October 16th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $100.10.

Insider Activity at Rocket Lab

In other Rocket Lab news, CFO Adam C. Spice sold 140,157 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $70.82, for a total value of $9,925,918.74. Following the completion of the transaction, the chief financial officer owned 1,155,967 shares of the company’s stock, valued at $81,865,582.94. This represents a 10.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nina Armagno sold 10,926 shares of the firm’s stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $52.78, for a total value of $576,674.28. Following the completion of the transaction, the director directly owned 100,496 shares of the company’s stock, valued at approximately $5,304,178.88. This trade represents a 9.81% 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. Over the last quarter, insiders sold 551,832 shares of company stock valued at $34,940,037. 8.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RKLB. Versant Capital Management Inc boosted its stake in shares of Rocket Lab by 5.1% in the second quarter. Versant Capital Management Inc now owns 2,049 shares of the rocket manufacturer’s stock valued at $208,000 after buying an additional 100 shares in the last quarter. Bartlett & CO. Wealth Management LLC grew its holdings in Rocket Lab by 7.1% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer’s stock worth $120,000 after acquiring an additional 124 shares during the period. Parvin Asset Management LLC raised its position in Rocket Lab by 4.0% in the first quarter. Parvin Asset Management LLC now owns 3,665 shares of the rocket manufacturer’s stock worth $235,000 after acquiring an additional 140 shares in the last quarter. Wedmont Private Capital raised its position in Rocket Lab by 3.5% in the third quarter. Wedmont Private Capital now owns 4,644 shares of the rocket manufacturer’s stock worth $318,000 after acquiring an additional 157 shares in the last quarter. Finally, DMC Group LLC raised its position in Rocket Lab by 5.0% in the second quarter. DMC Group LLC now owns 3,553 shares of the rocket manufacturer’s stock worth $361,000 after acquiring an additional 170 shares in the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Rocket Lab Trading Up 6.5%

The company has a quick ratio of 4.98, a current ratio of 5.48 and a debt-to-equity ratio of 0.01. The business has a fifty day simple moving average of $62.42 and a 200 day simple moving average of $78.68. The company has a market cap of $37.52 billion, a price-to-earnings ratio of -174.19 and a beta of 3.15.

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. Rocket Lab is also developing Neutron, a larger launch vehicle.