Reynders McVeigh Capital Management LLC Invests $129.57 Million in Rocket Lab Corporation $RKLB

Reynders McVeigh Capital Management LLC bought a new stake in Rocket Lab Corporation (NASDAQ:RKLB) in the second quarter, HoldingsChannel.com reports. The institutional investor bought 1,274,670 shares of the rocket manufacturer’s stock, valued at approximately $129,570,000. Rocket Lab makes up approximately 5.3% of Reynders McVeigh Capital Management LLC’s holdings, making the stock its 4th biggest holding.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Gordian Capital Singapore Pte Ltd acquired a new stake in shares of Rocket Lab during the fourth quarter worth $29,000. Reflection Asset Management acquired a new stake in Rocket Lab in the 4th quarter valued at $30,000. Meeder Asset Management Inc. bought a new stake in shares of Rocket Lab during the 2nd quarter worth approximately $30,000. Highland Investment Advisors LLC bought a new stake in shares of Rocket Lab in the 2nd quarter valued at about $30,000. Finally, NBH Bank acquired a new stake in Rocket Lab during the 2nd quarter valued at $30,000. 71.78% of the stock is owned by institutional investors.

Rocket Lab Stock Performance

RKLB traded up $1.00 during midday trading on Tuesday, reaching $63.55. The company had a trading volume of 20,381,021 shares, compared to its average volume of 23,147,039. The business has a 50-day moving average price of $70.97 and a two-hundred day moving average price of $84.50. Rocket Lab Corporation has a 12-month low of $37.57 and a 12-month high of $151.00. The stock has a market cap of $38.03 billion, a PE ratio of -235.36 and a beta of 2.60. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.98 and a current ratio of 5.48.

Rocket Lab (NASDAQ:RKLB) last released its quarterly earnings data on Monday, August 10th. The rocket manufacturer reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.02). The business had revenue of $234.07 million for the quarter, compared to analysts’ expectations of $231.62 million. Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. On average, sell-side analysts expect that Rocket Lab Corporation will post -0.2 earnings per share for the current fiscal year.

Insider Activity at Rocket Lab

In related news, insider Marvin Clevenger sold 15,051 shares of the business’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $69.63, for a total transaction of $1,048,001.13. Following the completion of the transaction, the insider directly owned 458,924 shares in the company, valued at $31,954,878.12. The trade was a 3.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through 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, CFO Adam Spice sold 140,157 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $62.63, for a total transaction of $8,778,032.91. Following the completion of the transaction, the chief financial officer directly owned 1,155,967 shares of the company’s stock, valued at approximately $72,398,213.21. This represents a 10.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 3,624,371 shares of company stock valued at $312,944,881 in the last ninety days. 8.40% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Roth Capital set a $110.00 target price on Rocket Lab in a report on Tuesday, August 11th. Citizens Jmp reiterated a “market outperform” rating and set a $130.00 target price on shares of Rocket Lab in a research report on Tuesday, August 11th. Piper Sandler initiated coverage on shares of Rocket Lab in a report on Wednesday, July 15th. They set a “neutral” rating and a $83.00 price target for the company. Stifel Nicolaus set a $132.00 price target on Rocket Lab in a research note on Thursday, June 4th. Finally, Wall Street Zen downgraded Rocket Lab from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Four analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Rocket Lab currently has an average rating of “Moderate Buy” and an average price target of $107.32.

Rocket Lab News Summary

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

• Positive Sentiment: Rocket Lab completed a $1.944 billion at-the-market equity offering, issuing approximately 29.3 million shares. The proceeds, together with existing liquidity, are expected to cover the cash portion of the Iridium acquisition and remove a key funding obstacle. Rocket Lab Fully Funds Iridium Acquisition
• Positive Sentiment: Iridium amended its existing $1.775 billion credit facility to permit the change of control, creating a longer-term financing structure supported by Iridium’s cash flow. Rocket Lab also terminated its previously arranged $3.6 billion bridge facility, reducing reliance on short-term acquisition debt and lowering financing risk. Rocket Lab Secures Funding for Iridium Buyout
• Positive Sentiment: The acquisition is expected to substantially expand Rocket Lab’s scale and strengthen its satellite communications and space-systems portfolio. Management has also indicated that additional space-industry acquisitions could follow. Rocket Lab expects Iridium deal to double its size
• Neutral Sentiment: Rocket Lab’s formal protest of NASA’s decision to award its Mars Telecommunications Network contract to Blue Origin keeps a potentially important government opportunity in focus, but the outcome and any financial benefit remain uncertain. Rocket Lab challenges NASA Mars contract award
• Negative Sentiment: The equity financing materially dilutes existing shareholders. Investors are also weighing the risk that Iridium’s slower growth could initially reduce Rocket Lab’s exceptionally high growth rate, while the deal remains exposed to regulatory, integration and execution risks. Rocket Lab rises on Iridium deal optimism

Rocket Lab Profile

Rocket Lab USA, Inc is a space company that provides launch services and space systems for commercial, civil and national security customers. The company develops and operates launch vehicles, spacecraft and satellite components, with activities spanning the design, manufacture and operation of space hardware.

Rocket Lab’s Electron rocket is a small-lift orbital launch vehicle designed to deploy small satellites. The company also develops HASTE, a suborbital test vehicle based on Electron technology, and is developing Neutron, a larger reusable launch vehicle intended to support a broader range of missions.