Bank of America Has Lowered Expectations for Rocket Lab (NASDAQ:RKLB) Stock Price

Key Points

• Bank of America lowered Rocket Lab’s price target from $115 to $110 while maintaining a “buy” rating, implying 72.74% upside from the stock’s prior close.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $110.35, despite one sell rating.
• Rocket Lab shares fell 1.1% to $63.68, while the company reported a quarterly EPS loss of $0.08—below estimates—but revenue of $234.07 million exceeded expectations.

Rocket Lab (NASDAQ:RKLB - Get Free Report) had its price target decreased by analysts at Bank of America from $115.00 to $110.00 in a report released on Monday,Benzinga reports. The firm presently has a "buy" rating on the rocket manufacturer's stock. Bank of America's price target suggests a potential upside of 72.74% from the stock's previous close.

RKLB has been the topic of a number of other research reports. Roth Capital set a $110.00 price target on Rocket Lab in a research note on Tuesday, August 11th. Needham & Company LLC reaffirmed a "buy" rating on shares of Rocket Lab in a research note on Tuesday, August 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rocket Lab in a report on Friday, July 17th. Morgan Stanley reissued an "overweight" rating on shares of Rocket Lab in a research note on Wednesday, July 8th. Finally, Deutsche Bank Aktiengesellschaft raised their target price on Rocket Lab from $73.00 to $120.00 and gave the stock a "buy" rating in a report on Tuesday, May 12th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Rocket Lab has a consensus rating of "Moderate Buy" and a consensus price target of $110.35.

Rocket Lab Trading Down 1.1%

Rocket Lab stock traded down $0.71 during trading hours on Monday, reaching $63.68. 7,070,377 shares of the company's stock traded hands, compared to its average volume of 23,377,020. The firm has a market capitalization of $38.10 billion, a price-to-earnings ratio of -235.84 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 has a fifty-two week low of $37.57 and a fifty-two week high of $151.00. The firm's 50 day moving average is $77.80 and its 200-day moving average is $85.04.

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

Insiders Place Their Bets

In other Rocket Lab news, SVP Arjun Kampani sold 6,034 shares of Rocket Lab stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $66.65, for a total transaction of $402,166.10. Following the transaction, the senior vice president directly owned 250,917 shares in the company, valued at approximately $16,723,618.05. The trade was a 2.35% decrease in their ownership of the stock. 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. Also, CFO Adam C. Spice sold 9,677 shares of the business's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $69.63, for a total value of $673,809.51. Following the completion of the transaction, the chief financial officer directly owned 1,155,967 shares of the company's stock, valued at approximately $80,489,982.21. The trade was a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold 3,524,214 shares of company stock worth $309,110,848 over the last 90 days. 8.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

Several institutional investors and hedge funds have recently modified their holdings of the business. Mcguire Capital Advisors Inc. acquired a new stake in Rocket Lab during the 4th quarter worth approximately $27,000. Zions Bancorporation National Association UT acquired a new position in shares of Rocket Lab in the fourth quarter valued at approximately $28,000. EverSource Wealth Advisors LLC increased its position in shares of Rocket Lab by 109.5% during the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after acquiring an additional 416 shares in the last quarter. Gordian Capital Singapore Pte Ltd bought a new stake in shares of Rocket Lab during the fourth quarter worth $29,000. Finally, Reflection Asset Management acquired a new stake in shares of Rocket Lab during the fourth quarter worth $30,000. 71.78% of the stock is currently owned by institutional investors and hedge funds.

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.

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