New Street Research Upgrades Rocket Lab (NASDAQ:RKLB) to Strong-Buy

Rocket Lab (NASDAQ:RKLB) was upgraded by stock analysts at New Street Research to a “strong-buy” rating in a report released on Wednesday,Zacks.com reports.

Several other analysts have also recently commented on RKLB. Morgan Stanley upgraded shares of Rocket Lab from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $67.00 to $105.00 in a research note on Friday, January 16th. Bank of America lifted their target price on Rocket Lab from $60.00 to $120.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. The Goldman Sachs Group increased their price target on Rocket Lab from $47.00 to $69.00 and gave the company a “neutral” rating in a research note on Tuesday, January 20th. Cantor Fitzgerald restated an “overweight” rating and set a $85.00 price target on shares of Rocket Lab in a report on Friday, March 13th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rocket Lab in a research note on Tuesday, April 21st. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $97.19.

Rocket Lab Stock Performance

NASDAQ:RKLB opened at $132.55 on Wednesday. The stock has a 50-day moving average price of $77.75 and a 200 day moving average price of $70.44. The stock has a market capitalization of $75.48 billion, a P/E ratio of -414.22 and a beta of 2.30. Rocket Lab has a 12-month low of $22.77 and a 12-month high of $133.18. 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 (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.07). The business 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%. The company’s revenue was up 63.4% on a year-over-year basis. During the same period last year, the firm posted ($0.12) EPS. Equities research analysts forecast that Rocket Lab will post -0.22 EPS for the current fiscal year.

Insider Activity

In other Rocket Lab news, insider Frank Klein sold 36,768 shares of the company’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $71.95, for a total transaction of $2,645,457.60. Following the sale, the insider directly owned 1,088,237 shares in the company, valued at $78,298,652.15. This represents a 3.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Peter Beck sold 18,857 shares of the firm’s stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $69.59, for a total value of $1,312,258.63. Following the completion of the sale, the chief executive officer directly owned 884,085 shares of the company’s stock, valued at $61,523,475.15. The trade was a 2.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 333,449 shares of company stock worth $28,295,233. 8.40% of the stock is owned by insiders.

Institutional Trading of Rocket Lab

Several hedge funds and other institutional investors have recently bought and sold shares of RKLB. Sara Bay Financial boosted its stake in Rocket Lab by 0.7% during the fourth quarter. Sara Bay Financial now owns 15,905 shares of the rocket manufacturer’s stock worth $1,121,000 after buying an additional 117 shares during the period. ORG Partners LLC raised its stake in shares of Rocket Lab by 9.1% in the fourth quarter. ORG Partners LLC now owns 1,458 shares of the rocket manufacturer’s stock valued at $102,000 after acquiring an additional 121 shares during the period. Bartlett & CO. Wealth Management LLC lifted its holdings in shares of Rocket Lab by 7.1% in the 1st 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. boosted its stake in shares of Rocket Lab by 3.9% during the 1st quarter. Sovereign Financial Group Inc. now owns 3,320 shares of the rocket manufacturer’s stock worth $213,000 after purchasing an additional 125 shares during the period. Finally, Traynor Capital Management Inc. boosted its stake in shares of Rocket Lab by 1.9% during the 4th quarter. Traynor Capital Management Inc. now owns 7,191 shares of the rocket manufacturer’s stock worth $502,000 after purchasing an additional 133 shares during the period. Hedge funds and other institutional investors own 71.78% of the company’s stock.

Key Rocket Lab News

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

• Positive Sentiment: Shares are benefiting from renewed investor confidence after a strong first-quarter report and follow-on analyst price target increases, which reinforced the view that Rocket Lab’s growth remains on track. Why Rocket Lab (RKLB) Stock Is Trading Up Today
• Positive Sentiment: Momentum is also being driven by optimism that Neutron launches later this year could open a larger addressable market and position Rocket Lab as a stronger competitor in medium-lift launches. Rocket Lab Stock Is Getting a Major Lift. Investors Are Betting on Its Neutron Launch Later This Year.
• Positive Sentiment: Investor sentiment improved further after Rocket Lab reported a $2.2 billion backlog and announced a new multi-launch deal, signaling healthy demand visibility. Rocket Lab Stock Jumps After $2.2B Backlog and New Multi-Launch Deal
• Positive Sentiment: The company is also expanding its defense-related relevance, including work tied to hypersonics, which could diversify revenue beyond satellite launches and support long-term growth. Anduril Hires Rocket Lab to Help It With Hypersonics
• Neutral Sentiment: Rocket Lab also registered shares for the Mynaric acquisition resale, a routine corporate filing that may matter strategically but is not an immediate operating catalyst. Rocket Lab Registers Shares for Mynaric Acquisition Resale
• Negative Sentiment: On the cautionary side, insider selling by a director may raise some concerns about valuation after the stock’s sharp run-up, even if it does not change the company’s fundamentals. Director Alexander R. Slusky transaction filing

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.