After explosive gains yesterday, Rocket Lab (NASDAQ:RKLB) the title comes back to Earth a little in Thursday’s trading. The company’s stock price was down 5.3% as of 2:45 p.m. ET.

Following Rocket Lab’s big profit-driven rally yesterday, Cathie Wood’s company Ark Invest decided to take profits on the stock. The high-profile investor isn’t the only one selling shares after yesterday’s huge gains, and the surge in selling is pushing the stock lower today.

Cathie Wood and others take profits after Rocket Lab’s blockbuster quarter

Ark Invest and its CEO, Cathie Boishave been among the most vocal champions of Rocket Lab stock, and their confidence was rewarded with explosive gains for the company’s stock price yesterday. Rocket Lab stock closed yesterday’s session up 28% and had risen as much as 53% earlier in the daily session on stronger-than-expected third-quarter results.

Rocket Lab reported a loss of $0.10 per share on revenue of $104.8 million in the third quarter, beating Wall Street’s average target of a loss per share of $0.11 on sales of approximately $106.4 million. Revenue grew nearly 55% year over year during the period, and the company also issued strong guidance. For the current quarter, the company expects revenue between $125 million and $135 million, representing sequential quarterly growth of approximately 24% at the midpoint of the guidance range.

On the heels of these gains, Ark Invest sold approximately 479,600 shares across its business. Ark Autonomous Technology & Robotics ETF And Ark Space Exploration & Innovation ETF. In total, Wood’s sold nearly $9 million worth of the company’s stock, and many other investors are also looking to profit on the stock today.

What’s next for Rocket Lab stock?

As Wood and other investors sold shares of Rocket Lab, the stock received a new round of bullish coverage from analysts today. Cantor Fitzgerald maintained a buy rating on the stock and raised its one-year price target from $7 per share to $24 per share, citing the company’s contract for use of its reusable Neutron rocket with a commercial satellite company. In the meantime, Bank of America raised its one-year price target on Rocket Lab from $10 per share to $30 per share and highlighted the adoption of the Neutron rocket as a sign the stock was becoming less risky.

Overall, Rocket Lab remains a high-risk, high-reward investment, but the company is clearly making encouraging progress.

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Bank of America is an advertising partner of Motley Fool Money. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds positions with and recommends Bank of America. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.