Rocket Lab (NASDAQ:RKLB) Raised to Strong-Buy at Citigroup

Rocket Lab (NASDAQ:RKLB) was upgraded by Citigroup to a “strong-buy” rating in a report issued on Thursday, Zacks reports.

Other equities research analysts also recently issued research reports about the company. Craig Hallum raised their price target on Rocket Lab from $98.00 to $120.00 and gave the company a “buy” rating in a report on Monday, June 29th. Morgan Stanley reiterated an “overweight” rating on shares of Rocket Lab in a report on Wednesday, July 8th. Citizens Jmp reissued a “market outperform” rating and issued a $130.00 price objective on shares of Rocket Lab in a research report on Tuesday, August 11th. Raymond James Financial assumed coverage on shares of Rocket Lab in a research note on Friday, September 11th. They set an “outperform” rating and a $80.00 target price for the company. Finally, Stifel Nicolaus set a $132.00 target price on shares of Rocket Lab in a report on Thursday, June 4th. Five research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Rocket Lab currently has a consensus rating of “Moderate Buy” and a consensus target price of $107.20.

Rocket Lab Stock Up 4.9%

RKLB stock opened at $73.92 on Thursday. The company has a market cap of $44.23 billion, a price-to-earnings ratio of -273.77 and a beta of 2.93. Rocket Lab has a twelve month low of $37.57 and a twelve month high of $151.00. The business has a 50 day moving average price of $69.77 and a two-hundred day moving average price of $84.34. The company has a quick ratio of 4.98, a current ratio of 5.48 and a debt-to-equity ratio of 0.01.

Rocket Lab (NASDAQ:RKLB) last issued its earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02). The firm had revenue of $234.07 million during the quarter, compared to the consensus estimate of $231.62 million. Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. Analysts anticipate that Rocket Lab will post -0.2 EPS for the current fiscal year.

Insider Activity

In other Rocket Lab news, insider Frank Klein sold 45,692 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $69.63, for a total transaction of $3,181,533.96. Following the transaction, the insider owned 961,295 shares in the company, valued at $66,934,970.85. This represents a 4.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Arjun Kampani sold 7,754 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $69.63, for a total transaction of $539,911.02. Following the transaction, the senior vice president directly owned 256,951 shares in the company, valued at $17,891,498.13. This represents a 2.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 3,676,528 shares of company stock worth $313,368,560. Insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

A number of hedge funds have recently added to or reduced their stakes in RKLB. Versant Capital Management Inc grew its position in shares of Rocket Lab by 5.1% in the 2nd quarter. Versant Capital Management Inc now owns 2,049 shares of the rocket manufacturer’s stock valued at $208,000 after buying an additional 100 shares during the last quarter. Bartlett & CO. Wealth Management LLC raised its position in shares of Rocket Lab by 7.1% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer’s stock worth $120,000 after acquiring an additional 124 shares during the last quarter. Sovereign Financial Group Inc. raised its position in shares of Rocket Lab by 3.9% during the first quarter. Sovereign Financial Group Inc. now owns 3,320 shares of the rocket manufacturer’s stock worth $213,000 after acquiring an additional 125 shares during the last quarter. Parvin Asset Management LLC lifted its stake in shares of Rocket Lab by 4.0% in the first quarter. Parvin Asset Management LLC now owns 3,665 shares of the rocket manufacturer’s stock worth $235,000 after acquiring an additional 140 shares during the period. Finally, DMC Group LLC lifted its stake in shares of Rocket Lab by 5.0% in the second quarter. DMC Group LLC now owns 3,553 shares of the rocket manufacturer’s stock worth $361,000 after acquiring an additional 170 shares during the period. Institutional investors own 71.78% of the company’s stock.

Trending Headlines about Rocket Lab

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

• Positive Sentiment: Record Synspective contract: Rocket Lab signed a multi-year agreement for 20 Electron launches between 2028 and 2031. The deal lifts Synspective’s total planned missions to 47 and pushes Rocket Lab’s launch backlog above 100 missions, strengthening visibility for future launch revenue. Rocket Lab’s 20-Launch Synspective Deal Pushes Backlog Above 100 Missions
• Positive Sentiment: Wall Street support: Citi initiated coverage with a Buy rating and a $105 price target, calling RKLB a potential “core holding for space bulls.” Other analysts cited in recent coverage see substantial upside, supporting the stock’s rebound. Rocket Lab Stock Rises on Record Electron Launch Deal and Citi Buy Rating
• Positive Sentiment: Institutional buying: Cathie Wood’s ARK Invest ETFs reportedly purchased more than $41 million of Rocket Lab shares across ARKK, ARKQ and ARKX. The buying reflects confidence in Electron, the company’s space-systems business and its planned Neutron rocket. Cathie Wood Is Buying Rocket Lab Again
• Neutral Sentiment: Competitive backdrop: SpaceX’s successful Starship orbital test highlights both the opportunity and the threat for Rocket Lab. Larger, potentially lower-cost rockets could pressure launch economics, increasing the importance of Rocket Lab’s differentiated, dedicated-launch strategy and Neutron’s development.
• Negative Sentiment: Risks remain: The Synspective contract’s financial terms were not disclosed, Rocket Lab remains unprofitable, and its latest reported quarter missed the consensus EPS estimate despite exceeding revenue expectations. Extensive insider selling—including sales by CEO Peter Beck—may also weigh on sentiment and raises valuation concerns after the recent rally.

Rocket Lab Company Profile

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab’s primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.