Rocket Lab USA (NASDAQ:RKLB) swung lower in early trading on Tuesday after the company entered into a $750 ATM equity offering with underwriters.
The program allows the company to sell up to $750 million of its stock over time through several different investment banks, instead of all at once. The sales can happen over time and at market prices, giving Rocket Lab (NASDAQ:RKLB) flexibility to raise money as needed. By the terms of the offering, the company is not required to sell any shares, and the offering can be canceled.
Shares of Rocket Lab (RKLB) fell 3.6% in premarket trading on Tuesday to $52.11 vs. the 52-week range of $7.00 to $55.17. The stock is up more than 180% over the last six months. Short interest on RKLB stands at 12.4% of the total float.
Seeking Alpha and Wall Street analysts both have a consensus Buy rating on Rocket Lab (RKLB), while the Seeking Alpha Quant Rating is flashing Hold.