Rocket Lab USA (NASDAQ:RKLB) Shares Down 2.5% – Should You Sell?

Rocket Lab USA, Inc. (NASDAQ:RKLB)’s share price dropped 2.5% during mid-day trading on Tuesday . The company traded as low as $9.48 and last traded at $9.63. Approximately 3,629,500 shares traded hands during trading, a decline of 63% from the average daily volume of 9,682,738 shares. The stock had previously closed at $9.88.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on RKLB. Morgan Stanley downgraded Rocket Lab USA from an “overweight” rating to an “equal weight” rating and decreased their price target for the company from $8.00 to $6.00 in a research note on Monday, July 15th. The Goldman Sachs Group upped their price target on shares of Rocket Lab USA from $4.50 to $5.00 and gave the stock a “neutral” rating in a research note on Thursday, October 10th. BTIG Research began coverage on shares of Rocket Lab USA in a research note on Wednesday, June 26th. They issued a “neutral” rating for the company. Roth Mkm restated a “buy” rating and set a $7.00 target price on shares of Rocket Lab USA in a research report on Tuesday, June 18th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $7.00 price objective on shares of Rocket Lab USA in a research note on Monday, September 30th. Five analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, Rocket Lab USA currently has a consensus rating of “Hold” and a consensus target price of $6.75.

Rocket Lab USA Trading Up 0.9 %

The business has a 50-day moving average of $7.23 and a 200 day moving average of $5.43. The stock has a market cap of $4.91 billion, a PE ratio of -26.03 and a beta of 1.32. The company has a debt-to-equity ratio of 0.90, a quick ratio of 2.43 and a current ratio of 2.82.

Rocket Lab USA (NASDAQ:RKLB) last posted its quarterly earnings data on Thursday, August 8th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.02. Rocket Lab USA had a negative net margin of 54.17% and a negative return on equity of 34.12%. The business had revenue of $106.25 million during the quarter, compared to analyst estimates of $105.47 million. During the same quarter in the previous year, the business posted ($0.10) earnings per share. The company’s revenue was up 71.2% on a year-over-year basis. Equities research analysts predict that Rocket Lab USA, Inc. will post -0.39 EPS for the current fiscal year.

Insider Activity at Rocket Lab USA

In other news, CFO Adam C. Spice sold 62,512 shares of the stock in a transaction dated Thursday, August 22nd. The shares were sold at an average price of $6.96, for a total transaction of $435,083.52. Following the transaction, the chief financial officer now directly owns 1,321,165 shares in the company, valued at $9,195,308.40. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other Rocket Lab USA news, Director Michael D. Griffin sold 39,446 shares of the business’s stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $6.90, for a total transaction of $272,177.40. Following the completion of the sale, the director now owns 42,353 shares of the company’s stock, valued at approximately $292,235.70. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Adam C. Spice sold 62,512 shares of the company’s stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $6.96, for a total value of $435,083.52. Following the sale, the chief financial officer now owns 1,321,165 shares of the company’s stock, valued at $9,195,308.40. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 130,521 shares of company stock worth $906,059. 13.70% of the stock is currently owned by insiders.

Institutional Trading of Rocket Lab USA

A number of institutional investors have recently modified their holdings of RKLB. Advisors Asset Management Inc. grew its stake in Rocket Lab USA by 59.4% during the first quarter. Advisors Asset Management Inc. now owns 10,816 shares of the rocket manufacturer’s stock worth $44,000 after buying an additional 4,032 shares during the period. International Assets Investment Management LLC purchased a new stake in Rocket Lab USA during the 2nd quarter worth $46,000. Baxter Bros Inc. acquired a new stake in Rocket Lab USA in the 2nd quarter valued at $48,000. Amalgamated Bank raised its position in Rocket Lab USA by 26.7% in the second quarter. Amalgamated Bank now owns 12,038 shares of the rocket manufacturer’s stock valued at $58,000 after purchasing an additional 2,538 shares during the period. Finally, CIBC Asset Management Inc acquired a new position in shares of Rocket Lab USA during the second quarter worth about $67,000. Hedge funds and other institutional investors own 71.78% of the company’s stock.

About Rocket Lab USA

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.