Image courtesy of 123rf.com

Rocket Lab USA, Inc. (Nasdaq: RKLB) is currently facing scrutiny as Bronstein, Gewirtz & Grossman, LLC investigates potential claims on behalf of investors. The inquiry follows a report by Bleeker Street Research, which alleges that the company provided misleading information regarding the timeline for the launch of its Neutron rocket.

Originally anticipated for mid-2025, the launch is now expected to be delayed until mid-2026 or even mid-2027. This revelation has raised concerns about the credibility of Rocket Lab’s communications with investors and has prompted a closer examination of its launch contracts and pricing strategies.

Rocket Lab Stock Takes a Hit Following Scrutiny Over Delayed Launch

Following the release of the Bleeker Street Research report, Rocket Lab’s stock experienced a significant decline. The stock price fell by 9.83%, closing at $20.28 per share. The day saw a high of $22.15 and a low of $19.755, indicating a volatile trading session.

In premarket trading, the stock is currently priced at $17.13, a drop of over 13%, reflecting ongoing concerns among investors. Over the past year, Rocket Lab’s stock has seen a range between $3.47 and $33.34, illustrating the fluctuations the company has faced.

RKLB Stock Brief

Rocket Lab’s financial metrics highlight some challenges the company is currently navigating. With a market capitalization of approximately $8.9 billion and a forward P/E ratio of -86.21739, the figures suggest an environment of financial strain.

The company’s debt to equity ratio stands at 122.478, raising questions about its financial leverage. Despite these concerns, analysts have maintained a “Buy” recommendation, with a mean target price of $24.65. The high and low target prices are set at $35.00 and $13.50, respectively, indicating a range of expectations for the company’s future performance.

The Bleeker Street Research report has also highlighted potential liquidity issues for Rocket Lab, emphasizing the need for additional funding to bring the Neutron rocket project to fruition. The company’s quick ratio of 1.527 and current ratio of 2.04 suggest some ability to meet short-term obligations, yet the need for further capital is apparent.

Rocket Lab’s total revenue stands at $436.2 million, but with a trailing EPS of -0.38 and a forward EPS of -0.23, profitability remains a concern. These financial indicators underscore the importance of securing new funding to ensure the successful launch of the Neutron rocket.

More By This Author: