Rocket Lab Corp (NASDAQ:RKLB) shares are trading lower Tuesday after the company announced an offering of up to $750 million of its common stock.
What Happened: Rocket Lab said in a regulatory filing that it entered into a sales agreement to offer and sell up to $750 million of its common stock from time to time.
Rocket Lab said it plans to terminate a prior agreement from March that allowed the company to sell up to $500 million of its common stock. The company offered and sold $396.6 million of its common stock under that agreement before replacing it with the sales agreement announced this week.
Rocket Lab had approximately $564.08 million in cash and cash equivalents as of June 30.
RKLB Analysis: Rocket Lab shares show bearish momentum with a recent price drop indicating a potential reversal. However, the RSI is calculated at 38.75, suggesting the stock is approaching oversold conditions.
Rocket Lab has a strong momentum score of 99.27, according to Benzinga Edge Rankings.
Support is established at $50.00, which aligns with recent lows, while resistance is found at $55.00, a key level where the stock has struggled to break through. The price action shows a series of lower highs, confirming a downtrend in the short term.
The MACD shows a bearish crossover, with the MACD line at -0.15 and the signal line at -0.10, indicating continued downward momentum.
Analyst sentiment remains positive, with Needham maintaining Buy rating with $55 price target on Sept. 3, Cantor Fitzgerald maintaining an Overweight rating with $54 price target on Aug. 8 and Keybanc maintaining an Overweight rating with $50 price target on the same day.
RKLB Price Action: Rocket Lab shares were down 11.75% at $47.85 at the time of publication on Tuesday, according to Benzinga Pro.
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