TLDR
- Rocket Lab (RKLB) stock fell 4% on Monday to $65.71 and is down 13% over the past week.
- CFO Adam Spice sold $9.93 million of stock on October 1 under a pre-set trading plan.
- A Japanese satellite firm reportedly booked 20 more Electron launches, and backlog hit a record $2.36 billion.
- Analysts rate the stock a Moderate Buy with an average price target of $104.71.
- Neutron has not launched yet, and SpaceX competition is a concern for the Iridium deal.
Rocket Lab (RKLB) stock dropped 4% on Monday to $65.71. It closed at $68.21 in the prior session.
The low of the day was $65.12. Volume was light at 14.35 million, about 38% below the 22.99 million daily average.
Pre-market trading on Tuesday put the stock at $64.93, off another 1%. That leaves it down about 13% over the past week.
The stock sits below its 50-day average of $70.52 and its 200-day average of $84.44. Its market cap is $39.32 billion and its beta is 2.93.
What Is Weighing on the Stock
Rocket Lab is still posting losses. Last quarterās loss was $0.08 per share, wider than the $0.06 analysts expected.
Revenue was a little better at $234.07 million, against $231.62 million expected. The company reported on August 10.
CFO Adam Spice sold $9.93 million of Rocket Lab stock on October 1, a total of 140,157 units. Prices ranged from $69.53 to $72.39.
The sales followed a Rule 10b5-1 plan he set up on June 3. The stock has fallen since, so the timing looks good in hindsight.
Spice also exercised options at $1.09 each for $152,771. He still owns 1,155,967 units directly.
Insiders sold $26.96 million of stock over the last 90 days. They own 8.4% of the company.
Competition is the other worry. Analysts point to SpaceX, launch execution and orbital-collision management.
SpaceXās push into satellite-spectrum services could weaken the case for Rocket Labās planned Iridium deal. Neutron has also yet to launch.
Demand and Analyst Views
A Japanese satellite company reportedly signed for 20 more dedicated Electron launches. Backlog reached a record $2.36 billion as of June 30.
NASA is reportedly weighing bulk rocket purchases for a lunar-base effort of about $30 billion. That has drawn fresh eyes to Neutron.
Four analysts rate the stock Strong Buy, 15 say Buy, five say Hold and one says Sell. The average target is $104.71.
Citigroup started coverage on October 1 with a Buy rating and a $105 target. Barclays began with an Overweight rating.
TD Cowen kept its Buy rating but cut its target from $120 to $90. ARK Invest reportedly added about 1.3 million units.
Rocket Lab also launched IMM Apex, a germanium-free solar cell for space use. The company expects Neutron and Iridium to expand its capabilities by 2027.
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