Rocket Lab USA (RKLB) experienced a significant decline today, closing at $23.91, down 11.15% from the previous close of $26.91. The stock opened at $25.67, which was also the intraday high, before dropping to a low of $23.62. The trading volume was 17,786,184 shares, which is 83.60% of the average volume.
The downturn appears to be influenced by the recent delay in NASA's Mars Sample Return (MSR) mission, which Rocket Lab had proposed to complete for under $4 billion by 2031. NASA's decision to delay the mission by 18 months has created uncertainty about Rocket Lab's involvement, negatively impacting investor sentiment. Additionally, the inclusion of Rocket Lab's Neutron rocket in NASA's VADR contract did not provide the anticipated boost, as the market had likely already priced in this news.
Despite positive analyst ratings and increased price targets from institutions like Citigroup and Stifel Nicolaus, the immediate concerns over the MSR mission delay overshadowed these developments. Insider trading activity, including significant share sales by directors, may have also contributed to the negative sentiment.