Rocket Lab (NASDAQ:RKLB) Stock Price Up 5.6% After Analyst Upgrade

Rocket Lab Corporation (NASDAQ:RKLB)’s stock price rose 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. Approximately 26,329,722 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 23,512,811 shares. The stock had previously closed at $117.56.

Several other research firms also recently weighed in on RKLB. Wells Fargo & Company initiated coverage on shares of Rocket Lab in a research note on Wednesday, April 1st. They issued an “equal weight” rating and a $60.00 price target for the company. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Rocket Lab from $73.00 to $120.00 and gave the stock a “buy” rating in a research note on Tuesday. TD Cowen boosted their price target on shares of Rocket Lab from $90.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Weiss Ratings reissued a “sell (d-)” rating on shares of Rocket Lab in a research note on Tuesday, April 21st. Finally, Craig Hallum raised shares of Rocket Lab from a “hold” rating to a “buy” rating and set a $98.00 price target for the company in a research note on Friday, May 8th. Three 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. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $97.19.

Insider Activity

In other news, CEO Peter Beck sold 18,857 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $69.59, for a total transaction of $1,312,258.63. Following the completion of the transaction, the chief executive officer directly owned 884,085 shares of the company’s stock, valued at approximately $61,523,475.15. This represents a 2.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Frank Klein sold 44,482 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $69.59, for a total transaction of $3,095,502.38. Following the transaction, the insider directly owned 1,125,005 shares of the company’s stock, valued at approximately $78,289,097.95. This trade represents a 3.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 333,449 shares of company stock valued at $28,295,233. 8.40% of the stock is owned by corporate 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

Hedge funds and other institutional investors have recently modified their holdings of the company. Aventura Private Wealth LLC bought a new position in shares of Rocket Lab during the fourth quarter valued at about $25,000. Mcguire Capital Advisors Inc. bought a new position in shares of Rocket Lab during the fourth quarter valued at about $27,000. Zions Bancorporation National Association UT bought a new position in Rocket Lab in the fourth quarter worth about $28,000. Gordian Capital Singapore Pte Ltd bought a new position in Rocket Lab in the fourth quarter worth about $29,000. Finally, Reflection Asset Management bought a new position in Rocket Lab in the fourth quarter worth about $30,000. 71.78% of the stock is owned by institutional investors.

Rocket Lab Trading Down 5.9%

The company has a market capitalization of $71.05 billion, a P/E ratio of -389.91 and a beta of 2.30. The stock’s 50 day moving average is $77.75 and its 200-day moving average is $70.44. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.47 and a quick ratio of 4.02.

Rocket Lab (NASDAQ:RKLB) last released its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The company had revenue of $200.35 million during the quarter, compared to the consensus estimate of $189.65 million. During the same period in the prior year, the firm earned ($0.12) earnings per share. Rocket Lab’s revenue was up 63.4% on a year-over-year basis. As a group, equities research analysts anticipate that Rocket Lab Corporation will post -0.22 earnings per share for the current 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.