Rocket Lab USA (NASDAQ:RKLB) Shares Down 7.1% – Should You Sell?

Rocket Lab USA, Inc. (NASDAQ:RKLB)’s share price traded down 7.1% during trading on Thursday . The company traded as low as $17.34 and last traded at $17.49. 23,134,391 shares changed hands during mid-day trading, an increase of 116% from the average session volume of 10,702,277 shares. The stock had previously closed at $18.83.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on RKLB shares. Wells Fargo & Company raised their target price on Rocket Lab USA from $5.25 to $13.50 and gave the company an “equal weight” rating in a research note on Wednesday. The Goldman Sachs Group raised their price objective on shares of Rocket Lab USA from $4.50 to $5.00 and gave the company a “neutral” rating in a research report on Thursday, October 10th. JMP Securities assumed coverage on shares of Rocket Lab USA in a research report on Thursday, September 12th. They set a “market perform” rating on the stock. Stifel Nicolaus raised their price target on shares of Rocket Lab USA from $15.00 to $22.00 and gave the company a “buy” rating in a report on Wednesday. Finally, Citigroup upped their price objective on Rocket Lab USA from $7.00 to $13.00 and gave the stock a “buy” rating in a report on Wednesday, November 6th. Five equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $14.72.

Rocket Lab USA Stock Performance

The company has a quick ratio of 2.43, a current ratio of 2.58 and a debt-to-equity ratio of 0.97. The stock has a market cap of $9.44 billion, a P/E ratio of -51.35 and a beta of 1.29. The stock has a fifty day simple moving average of $10.38 and a 200-day simple moving average of $6.87.

Rocket Lab USA (NASDAQ:RKLB) last released its quarterly earnings data on Tuesday, November 12th. The rocket manufacturer reported ($0.10) earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.01. Rocket Lab USA had a negative net margin of 51.76% and a negative return on equity of 39.47%. The business had revenue of $104.81 million for the quarter, compared to analyst estimates of $102.74 million. Equities analysts expect that Rocket Lab USA, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Adam C. Spice sold 62,512 shares of the firm’s stock in a transaction on Thursday, August 22nd. The shares were sold at an average price of $6.96, for a total transaction of $435,083.52. Following the sale, the chief financial officer now directly owns 1,321,165 shares in the company, valued at $9,195,308.40. This trade represents a 4.52 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, General Counsel Arjun Kampani sold 28,563 shares of the business’s stock in a transaction on Thursday, August 22nd. The shares were sold at an average price of $6.96, for a total transaction of $198,798.48. Following the completion of the sale, the general counsel now directly owns 637,558 shares in the company, valued at $4,437,403.68. This represents a 4.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 130,521 shares of company stock valued at $906,059 in the last quarter. Company insiders own 13.70% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab USA

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in shares of Rocket Lab USA by 9.2% in the first quarter. Vanguard Group Inc. now owns 29,000,578 shares of the rocket manufacturer’s stock valued at $119,192,000 after buying an additional 2,448,789 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Rocket Lab USA by 12.2% during the 3rd quarter. Geode Capital Management LLC now owns 8,253,035 shares of the rocket manufacturer’s stock valued at $80,317,000 after purchasing an additional 898,223 shares during the last quarter. ARK Investment Management LLC lifted its holdings in Rocket Lab USA by 6.6% during the 2nd quarter. ARK Investment Management LLC now owns 6,297,073 shares of the rocket manufacturer’s stock valued at $30,226,000 after purchasing an additional 391,778 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in Rocket Lab USA by 22.7% during the third quarter. Charles Schwab Investment Management Inc. now owns 2,878,357 shares of the rocket manufacturer’s stock worth $28,006,000 after purchasing an additional 532,207 shares during the period. Finally, American Century Companies Inc. increased its holdings in shares of Rocket Lab USA by 11.1% in the second quarter. American Century Companies Inc. now owns 2,856,973 shares of the rocket manufacturer’s stock valued at $13,713,000 after purchasing an additional 284,360 shares during the last quarter. Institutional investors and hedge funds 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.