Rocket Lab (NASDAQ:RKLB) Trading 5.6% Higher Following Analyst Upgrade

Shares of Rocket Lab Corporation (NASDAQ:RKLB) traded up 5.6% during mid-day trading on Wednesday after New Street Research upgraded the stock to a strong-buy rating. The stock traded as high as $127.24 and last traded at $124.15. 26,329,722 shares traded hands during trading, an increase of 12% from the average session volume of 23,512,811 shares. The stock had previously closed at $117.56.

Several other equities analysts have also issued reports on the company. Needham & Company LLC raised their price objective on Rocket Lab from $95.00 to $120.00 and gave the stock a “buy” rating in a report on Monday. Wall Street Zen raised Rocket Lab from a “sell” rating to a “hold” rating in a report on Sunday, February 8th. Citigroup reaffirmed an “outperform” rating on shares of Rocket Lab in a report on Friday, May 8th. Citizens Jmp raised their price objective on Rocket Lab from $85.00 to $95.00 and gave the stock a “market outperform” rating in a report on Friday, May 8th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and set a $85.00 price objective on shares of Rocket Lab in a report on Friday, March 13th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $97.19.

Insider Transactions at Rocket Lab

In related news, Director Alexander R. Slusky sold 100,000 shares of Rocket Lab stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $118.08, for a total value of $11,808,000.00. Following the transaction, the director directly owned 434,675 shares in the company, valued at $51,326,424. This trade represents a 18.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Arjun Kampani sold 28,761 shares of Rocket Lab stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $69.59, for a total transaction of $2,001,477.99. Following the completion of the transaction, the senior vice president owned 421,699 shares in the company, valued at approximately $29,346,033.41. This trade represents a 6.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 333,449 shares of company stock worth $28,295,233 over the last three months. 8.40% of the stock is currently owned by company insiders.

Rocket Lab News Roundup

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Investors are still reacting to Rocket Lab’s Q1 earnings beat, with revenue up 63% year over year to about $200.4 million and a backlog of $2.2 billion, reinforcing confidence in the company’s growth trajectory. Why Rocket Lab Stock Is Rocketing Higher This Week
• Positive Sentiment: Analyst sentiment has improved after the report, including a higher price target from Deutsche Bank and additional bullish commentary that suggests Wall Street sees more upside if execution stays strong. Why Rocket Lab Stock Is Rocketing Higher This Week
• Positive Sentiment: Momentum is also being fueled by optimism around Rocket Lab’s Neutron rocket program, which investors see as a potential catalyst for expansion into a larger launch market later this year. Rocket Lab Stock Is Getting a Major Lift. Investors Are Betting on Its Neutron Launch Later This Year.
• Positive Sentiment: New contract wins and defense-related expansion, including work tied to missile defense and hypersonics, are helping investors view Rocket Lab as more than just a small-satellite launch company. Rocket Lab Targets Missile Defense and Golden Dome as Its Next Growth Market
• Neutral Sentiment: Some investors are also watching the recent insider selling by director Alexander Slusky, which may weigh on sentiment at these elevated levels but does not change the company’s operating story. Director Alexander R. Slusky transaction filing

Hedge Funds Weigh In On Rocket Lab

A number of hedge funds and other institutional investors have recently bought and sold shares of RKLB. Baillie Gifford & Co. boosted its holdings in Rocket Lab by 176.1% in the 3rd quarter. Baillie Gifford & Co. now owns 12,125,910 shares of the rocket manufacturer’s stock valued at $580,952,000 after purchasing an additional 7,734,788 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock valued at $3,308,033,000 after purchasing an additional 5,610,469 shares in the last quarter. Norges Bank purchased a new stake in Rocket Lab in the 4th quarter valued at approximately $341,036,000. Alliancebernstein L.P. boosted its holdings in Rocket Lab by 818.8% in the 3rd quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer’s stock valued at $104,929,000 after purchasing an additional 1,951,755 shares in the last quarter. Finally, Capital World Investors boosted its holdings in Rocket Lab by 12.0% in the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock valued at $1,130,172,000 after purchasing an additional 1,738,623 shares in the last quarter. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Lab Price Performance

The stock has a fifty day simple moving average of $77.75 and a two-hundred day simple moving average of $70.44. The company has a market cap of $71.05 billion, a PE ratio of -389.91 and a beta of 2.30. The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB) last announced its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.07). Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The company had revenue of $200.35 million for the quarter, compared to analyst estimates of $189.65 million. During the same quarter in the previous year, the company earned ($0.12) EPS. The firm’s revenue for the quarter was up 63.4% compared to the same quarter last year. On average, equities analysts predict that Rocket Lab Corporation will post -0.22 EPS for the current fiscal year.

Rocket Lab Company Profile

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company’s primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company’s propulsion capabilities.