TLDR
- Rocket Lab (RKLB) stock fell 4% on Monday to $65.71 and is down 13% over the past week.
- A Japanese satellite company reportedly signed for 20 more dedicated Electron launches, and the backlog hit a record $2.36 billion.
- CFO Adam Spice sold about $9.9 million of stock on October 1 under a pre-set trading plan.
- Analysts rate the stock a Moderate Buy with an average price target of $104.71.
- Neutron has not yet flown, and SpaceX competition remains a concern for the Iridium deal.
Rocket Lab (RKLB) stock fell 4% on Monday and closed at $65.71. It had closed at $68.21 in the previous session.
The stock traded as low as $65.12 during the day. Volume reached about 14.35 million, which is 38% below the daily average of 22.99 million.
Pre-market trading on Tuesday showed the stock at $64.93, down about 1%. Over the past week, it has lost 13%.
The company has a market cap of $39.32 billion and a beta of 2.93. The stock sits below its 50-day average of $70.52 and its 200-day average of $84.44.
What Moved the Stock
A Japanese satellite company reportedly signed a contract for 20 additional dedicated Electron launches. The deal adds to a record backlog of $2.36 billion as of June 30.
Reports also say NASA is weighing bulk rocket purchases for a lunar-base effort estimated at $30 billion. That has lifted interest in Neutron, which has not yet launched.
Risks are also in focus. Analysts point to launch execution, orbital-collision management and competition from SpaceX.
SpaceX’s push into satellite-spectrum services could also weaken the case for Rocket Lab’s planned Iridium deal. Investors are watching to see if that acquisition can speed up revenue growth.
Insider selling is part of the picture too. CFO Adam Spice sold 140,157 common stock for $9.93 million on October 1, at weighted-average prices of $69.53 to $72.39.
The sales followed a Rule 10b5-1 plan he adopted on June 3. He also exercised options at $1.09 each for $152,771 and still owns 1,155,967 directly.
Insider Frank Klein sold 35,558 units of stock at an average $66.61 on August 27. Over the past 90 days, insiders have sold stock worth $26.96 million.
Analysts and Earnings
Rocket Lab last reported on August 10, with a loss of $0.08 per share against an expected loss of $0.06. Revenue came in at $234.07 million, above the $231.62 million estimate.
Four analysts rate the stock Strong Buy, 15 rate it Buy, five say Hold and one says Sell. The average price target is $104.71.
Citigroup started coverage on October 1 with a Buy rating and a $105 target. Barclays began coverage with an Overweight rating.
TD Cowen kept its Buy rating but cut its target from $120 to $90. Cantor Fitzgerald holds an Overweight rating with a $122 target.
ARK Invest reportedly bought about 1.3 million. Institutions own 71.78% of the company.
Rocket Lab also announced IMM Apex, a germanium-free solar cell for space use. The company expects Neutron and Iridium to expand its medium-lift and spectrum capabilities by 2027.
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