Rocket Lab (NASDAQ:RKLB) Trading Up 3.7% After Analyst Upgrade

Rocket Lab Corporation (NASDAQ:RKLB)’s stock price shot up 3.7% during mid-day trading on Tuesday after Bank of America raised their price target on the stock from $105.00 to $115.00. Bank of America currently has a buy rating on the stock. Rocket Lab traded as high as $104.16 and last traded at $101.65. 32,599,552 shares traded hands during mid-day trading, an increase of 30% from the average session volume of 25,131,363 shares. The stock had previously closed at $98.01.

A number of other equities research analysts also recently weighed in on the company. KeyCorp upgraded Rocket Lab from a “sector weight” rating to an “overweight” rating and set a $135.00 price target on the stock in a research report on Monday, June 15th. Deutsche Bank Aktiengesellschaft upped their price objective on Rocket Lab from $73.00 to $120.00 and gave the stock a “buy” rating in a report on Tuesday, May 12th. New Street Research assumed coverage on Rocket Lab in a research report on Wednesday, May 13th. They set a “buy” rating and a $150.00 price objective on the stock. Craig Hallum raised their price objective on Rocket Lab from $98.00 to $120.00 and gave the company a “buy” rating in a report on Monday. Finally, Wells Fargo & Company began coverage on Rocket Lab in a research report on Wednesday, April 1st. They issued an “equal weight” rating and a $60.00 target price for the company. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $108.24.

Insider Buying and Selling at Rocket Lab

In other news, CFO Adam C. Spice sold 62,744 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $142.57, for a total value of $8,945,412.08. Following the completion of the sale, the chief financial officer owned 983,049 shares of the company’s stock, valued at approximately $140,153,295.93. The trade was a 6.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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, insider Marvin Bradford Clevenger sold 3,500 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $146.67, for a total value of $513,345.00. Following the sale, the insider owned 473,975 shares of the company’s stock, valued at $69,517,913.25. This represents a 0.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 573,515 shares of company stock valued at $76,412,122. 8.40% of the stock is currently owned by insiders.

Rocket Lab News Roundup

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

• Positive Sentiment: The Iridium acquisition could add stable, higher-margin cash flow and reduce Rocket Lab’s reliance on lumpy launch revenue. Rocket Lab to buy satellite communications firm Iridium in $8 billion deal
• Positive Sentiment: Analysts responded favorably, with multiple firms raising price targets and calling the combined company a stronger competitive threat to SpaceX. Rocket Lab Stock Rises As Iridium Deal Sparks Positive Analyst Response
• Positive Sentiment: Brokerage updates were constructive, including higher targets from Bank of America and Citizens JMP, reinforcing bullish sentiment around the transaction. Top Analyst Raises Rocket Lab Stock Price Target, Cites ‘Formidable’ Competitive Position
• Neutral Sentiment: The broader space sector is rallying, which is helping Rocket Lab benefit from a strong industry-wide risk-on move. Planet Labs Spikes 8%, Rocket Lab Gains 5%, SpaceX Climbs 4% as the Space Rally Rolls On

Institutional Trading of Rocket Lab

A number of institutional investors have recently made changes to their positions in RKLB. Aventura Private Wealth LLC purchased a new position in shares of Rocket Lab in the fourth quarter worth $25,000. Mcguire Capital Advisors Inc. purchased a new stake in Rocket Lab during the 4th quarter valued at $27,000. Zions Bancorporation National Association UT purchased a new stake in Rocket Lab during the 4th quarter valued at $28,000. Gordian Capital Singapore Pte Ltd bought a new stake in Rocket Lab in the 4th quarter worth $29,000. Finally, Reflection Asset Management purchased a new position in shares of Rocket Lab in the fourth quarter valued at about $30,000. Hedge funds and other institutional investors own 71.78% of the company’s stock.

Rocket Lab Price Performance

The stock has a market cap of $58.83 billion, a PE ratio of -317.66 and a beta of 2.48. The business’s 50-day simple moving average is $107.78 and its 200-day simple moving average is $85.40. The company has a quick ratio of 4.02, a current ratio of 4.47 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB) last posted its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.07). The company had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. Rocket Lab’s revenue for the quarter was up 63.4% on a year-over-year basis. During the same period in the prior year, the business posted ($0.12) earnings per share. On average, research analysts expect that Rocket Lab Corporation will post -0.29 EPS for the current fiscal year.

About Rocket Lab

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.