Rocket Lab (NASDAQ:RKLB) Trading Down 8.5% – Here’s What Happened

Rocket Lab Corporation (NASDAQ:RKLB) shares were down 8.5% during mid-day trading on Friday . The stock traded as low as $70.39 and last traded at $70.65. Approximately 22,790,716 shares traded hands during trading, an increase of 8% from the average daily volume of 21,109,352 shares. The stock had previously closed at $77.18.

Rocket Lab News Summary

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

• Positive Sentiment: Report that Rocket Lab jumped on a possible roughly $1B U.S. Space Development Agency (SDA) deal — this is the primary bullish fundamental catalyst cited for the recent surge; the contract would materially boost backlog if confirmed. Rocket Lab (RKLB) jumps 17.7% on possible billion-$ US SDA deal
• Positive Sentiment: Technical breakout: IBD says Rocket Lab cleared a buy point and satisfied the eight‑week hold rule after the contract news — a bullish technical signal that drew momentum buyers. Rocket Lab Takes Off On Contract Win, Triggers This Rare Bullish Signal
• Neutral Sentiment: An analyst is reworking price targets after RKLB hit record highs — could mean upgrades or refreshed guidance sensitivity, but impact depends on final published target and rationale. Rocket Lab analyst rethinks stock target after hitting record high
• Neutral Sentiment: Reported short‑interest data are anomalous (showing zero in the snapshot), so they don’t provide clear insight into crowd positioning; treat that metric cautiously until clarified by regular reporting sources.
• Negative Sentiment: Sectorwide pullback: Benzinga notes RKLB is cooling off as space-related stocks retrace year‑end gains — this broad weakness is a likely reason for today’s decline even after the positive headlines. Rocket Lab Stock Cools Off As Sector Pulls Back From Year‑End Rally
• Negative Sentiment: Insider selling: Director Nina Armagno sold ~27,314 shares in mid‑December — a sizable sale that may add to short‑term selling pressure or feed cautious sentiment among some investors. Nina Armagno Sells 27,314 Shares of Rocket Lab (NASDAQ:RKLB) Stock

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Citigroup restated a “market perform” rating on shares of Rocket Lab in a research report on Wednesday, November 12th. Baird R W upgraded shares of Rocket Lab to a “strong-buy” rating in a report on Thursday, October 16th. Robert W. Baird started coverage on shares of Rocket Lab in a research note on Wednesday, October 15th. They issued an “outperform” rating and a $83.00 price objective on the stock. Morgan Stanley dropped their target price on shares of Rocket Lab from $68.00 to $67.00 and set an “equal weight” rating for the company in a research report on Wednesday, November 12th. Finally, KeyCorp increased their price target on Rocket Lab from $50.00 to $75.00 and gave the company an “overweight” rating in a research note on Friday, October 17th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Rocket Lab currently has a consensus rating of “Moderate Buy” and a consensus target price of $61.25.

Rocket Lab Trading Down 8.5%

The company’s fifty day simple moving average is $55.35 and its two-hundred day simple moving average is $48.86. The company has a market capitalization of $37.74 billion, a price-to-earnings ratio of -185.92 and a beta of 2.20. The company has a quick ratio of 2.83, a current ratio of 3.18 and a debt-to-equity ratio of 0.32.

Rocket Lab (NASDAQ:RKLB) last announced its quarterly earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.02. The company had revenue of $155.08 million during the quarter, compared to analyst estimates of $152.45 million. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. The firm’s revenue was up 48.0% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.10) EPS. Research analysts forecast that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Activity at Rocket Lab

In other Rocket Lab news, SVP Arjun Kampani sold 10,554 shares of the firm’s stock in a transaction that occurred on Wednesday, November 26th. The shares were sold at an average price of $42.08, for a total transaction of $444,112.32. Following the sale, the senior vice president directly owned 450,460 shares in the company, valued at approximately $18,955,356.80. This trade represents a 2.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Frank Klein sold 4,736 shares of Rocket Lab stock in a transaction that occurred on Wednesday, November 26th. The shares were sold at an average price of $42.08, for a total transaction of $199,290.88. Following the completion of the transaction, the insider directly owned 1,269,487 shares in the company, valued at approximately $53,420,012.96. The trade was a 0.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,729,485 shares of company stock valued at $151,832,870 over the last 90 days. Insiders own 11.90% of the company’s stock.

Institutional Investors Weigh In On Rocket Lab

Several large investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. lifted its position in Rocket Lab by 4,904.6% in the 1st quarter. Russell Investments Group Ltd. now owns 19,668 shares of the rocket manufacturer’s stock valued at $352,000 after acquiring an additional 19,275 shares in the last quarter. Raymond James Financial Inc. raised its stake in shares of Rocket Lab by 166.5% in the 1st quarter. Raymond James Financial Inc. now owns 601,497 shares of the rocket manufacturer’s stock valued at $10,755,000 after purchasing an additional 375,831 shares during the period. Magnetar Financial LLC bought a new stake in shares of Rocket Lab in the first quarter valued at about $1,211,000. Vident Advisory LLC lifted its holdings in shares of Rocket Lab by 190.2% in the first quarter. Vident Advisory LLC now owns 589,410 shares of the rocket manufacturer’s stock valued at $10,539,000 after purchasing an additional 386,285 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its position in shares of Rocket Lab by 16.0% during the first quarter. Baird Financial Group Inc. now owns 217,765 shares of the rocket manufacturer’s stock worth $3,894,000 after buying an additional 30,036 shares during the period. Institutional investors own 71.78% of the company’s stock.

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.