Rocket Lab (NASDAQ:RKLB) Upgraded at Citigroup

Key Points

• Citigroup upgraded Rocket Lab to “strong buy,” joining largely positive analyst coverage. The stock has a consensus “Moderate Buy” rating and an average price target of $107.20.
• Rocket Lab reported quarterly revenue of $234.07 million, slightly above estimates, but missed on earnings with a loss of $0.08 per share versus the expected $0.06 loss. The company remains unprofitable, with a negative net margin of 21.51%.
• Institutional investors own 71.78% of the company, while insiders sold approximately $313.4 million worth of shares during the latest quarter. Rocket Lab shares opened at $73.92 and have traded between $37.57 and $151.00 over the past year.

Rocket Lab (NASDAQ:RKLB - Get Free Report) was upgraded by equities research analysts at Citigroup to a "strong-buy" rating in a report released on Thursday, Zacks reports.

Several other brokerages also recently commented on RKLB. KeyCorp restated an "overweight" rating on shares of Rocket Lab in a research note on Tuesday, August 11th. Bank of America dropped their target price on shares of Rocket Lab from $115.00 to $110.00 and set a "buy" rating for the company in a research report on Monday, August 31st. Roth Capital set a $110.00 price target on shares of Rocket Lab in a report on Tuesday, August 11th. Cantor Fitzgerald restated an "overweight" rating on shares of Rocket Lab in a research report on Monday, September 21st. Finally, Needham & Company LLC restated a "buy" rating on shares of Rocket Lab in a research report on Tuesday, August 11th. Five investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $107.20.

Rocket Lab Price Performance

Rocket Lab stock opened at $73.92 on Thursday. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.48 and a quick ratio of 4.98. The company has a market capitalization of $44.23 billion, a PE ratio of -273.77 and a beta of 2.93. Rocket Lab has a one year low of $37.57 and a one year high of $151.00. The business has a 50 day simple moving average of $69.77 and a 200 day simple moving average of $84.34.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced 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 net margin of 21.51% and a negative return on equity of 6.48%. The company had revenue of $234.07 million during the quarter, compared to analyst estimates of $231.62 million. On average, sell-side analysts forecast that Rocket Lab will post -0.2 EPS for the current fiscal year.

Insider Buying and Selling

In related news, SVP Arjun Kampani sold 7,754 shares of Rocket Lab stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $69.63, for a total value of $539,911.02. Following the completion of the transaction, the senior vice president directly owned 256,951 shares of the company's stock, valued at $17,891,498.13. The trade was a 2.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 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 C. Spice sold 140,157 shares of Rocket Lab stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $62.63, for a total value 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 $72,398,213.21. This represents a 10.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 3,676,528 shares of company stock valued at $313,368,560. Insiders own 8.40% of the company's stock.

Institutional Investors Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of Rocket Lab in the 2nd quarter valued at about $4,124,970,000. Capital World Investors boosted its stake in Rocket Lab by 12.0% during the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer's stock worth $1,130,172,000 after acquiring an additional 1,738,623 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Rocket Lab during the second quarter valued at approximately $245,764,000. Bank of America Corp DE acquired a new position in Rocket Lab during the second quarter valued at approximately $437,280,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Rocket Lab by 14.8% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,737,451 shares of the rocket manufacturer's stock valued at $278,262,000 after purchasing an additional 352,094 shares in the last quarter. Institutional investors and hedge funds own 71.78% of the company's stock.

Key Headlines Impacting Rocket Lab

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

• Positive Sentiment: Record Synspective contract: Rocket Lab signed a multi-year agreement for 20 Electron launches between 2028 and 2031. The deal lifts Synspective’s total planned missions to 47 and pushes Rocket Lab’s launch backlog above 100 missions, strengthening visibility for future launch revenue. Rocket Lab’s 20-Launch Synspective Deal Pushes Backlog Above 100 Missions
• Positive Sentiment: Wall Street support: Citi initiated coverage with a Buy rating and a $105 price target, calling RKLB a potential “core holding for space bulls.” Other analysts cited in recent coverage see substantial upside, supporting the stock’s rebound. Rocket Lab Stock Rises on Record Electron Launch Deal and Citi Buy Rating
• Positive Sentiment: Institutional buying: Cathie Wood’s ARK Invest ETFs reportedly purchased more than $41 million of Rocket Lab shares across ARKK, ARKQ and ARKX. The buying reflects confidence in Electron, the company’s space-systems business and its planned Neutron rocket. Cathie Wood Is Buying Rocket Lab Again
• Neutral Sentiment: Competitive backdrop: SpaceX’s successful Starship orbital test highlights both the opportunity and the threat for Rocket Lab. Larger, potentially lower-cost rockets could pressure launch economics, increasing the importance of Rocket Lab’s differentiated, dedicated-launch strategy and Neutron’s development.
• Negative Sentiment: Risks remain: The Synspective contract’s financial terms were not disclosed, Rocket Lab remains unprofitable, and its latest reported quarter missed the consensus EPS estimate despite exceeding revenue expectations. Extensive insider selling—including sales by CEO Peter Beck—may also weigh on sentiment and raises valuation concerns after the recent rally.

About Rocket Lab

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab's primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.

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