Craig Hallum Initiates Coverage on Rocket Lab (NASDAQ:RKLB)

Key Points

• Craig Hallum initiated coverage on Rocket Lab (NASDAQ:RKLB) with a "hold" rating and a price target of $51.00, indicating a potential upside of 7.53% from the current price.
• Analysts have mixed ratings on Rocket Lab, with five holding, seven buying, and one giving a strong buy rating, leading to an average rating of "Moderate Buy" and an average target price of $35.64.
• Insider sales have been significant, with a total of 1,130,995 shares sold in the last 90 days, suggesting a potential shift in shareholder confidence within the company.

Stock analysts at Craig Hallum started coverage on shares of Rocket Lab (NASDAQ:RKLB - Get Free Report) in a note issued to investors on Monday. The firm set a "hold" rating and a $51.00 price target on the rocket manufacturer's stock. Craig Hallum's price objective points to a potential upside of 7.53% from the stock's current price.

Other analysts have also recently issued reports about the stock. Cantor Fitzgerald restated an "overweight" rating and issued a $35.00 price objective on shares of Rocket Lab in a research note on Monday, July 14th. Roth Capital raised their price target on Rocket Lab from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Wednesday, May 28th. Needham & Company LLC lifted their price objective on Rocket Lab from $28.00 to $32.00 and gave the stock a "buy" rating in a research note on Wednesday, May 28th. Wells Fargo & Company dropped their price objective on Rocket Lab from $21.00 to $18.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 8th. Finally, Citigroup reiterated a "buy" rating and issued a $50.00 price objective (up from $33.00) on shares of Rocket Lab in a research note on Monday, July 14th. Five equities research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Rocket Lab currently has an average rating of "Moderate Buy" and an average target price of $35.64.

Rocket Lab Price Performance

Shares of RKLB opened at $47.43 on Monday. The firm has a market cap of $21.89 billion, a PE ratio of -118.58 and a beta of 2.15. The firm's 50 day moving average price is $33.89 and its 200 day moving average price is $26.53. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.72 and a current ratio of 2.08. Rocket Lab has a twelve month low of $4.20 and a twelve month high of $53.44.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The rocket manufacturer reported ($0.12) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.02). The business had revenue of $122.57 million for the quarter, compared to the consensus estimate of $120.74 million. Rocket Lab had a negative net margin of 44.32% and a negative return on equity of 48.92%. Rocket Lab's revenue was up 32.1% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.09) EPS. As a group, research analysts expect that Rocket Lab will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Merline Saintil sold 6,353 shares of the firm's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $33.38, for a total value of $212,063.14. Following the transaction, the director owned 419,569 shares in the company, valued at approximately $14,005,213.22. This trade represents a 1.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Matthew Ocko sold 820,000 shares of the firm's stock in a transaction on Friday, June 13th. The stock was sold at an average price of $26.01, for a total value of $21,328,200.00. Following the completion of the transaction, the director owned 1,083,053 shares in the company, valued at $28,170,208.53. The trade was a 43.09% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,130,995 shares of company stock worth $29,686,039. 11.90% of the stock is owned by corporate insiders.

Institutional Trading of Rocket Lab

Hedge funds have recently made changes to their positions in the company. MGO One Seven LLC acquired a new position in shares of Rocket Lab in the second quarter worth approximately $584,000. Allspring Global Investments Holdings LLC bought a new stake in Rocket Lab during the second quarter worth $285,000. CWM LLC boosted its position in Rocket Lab by 7.0% in the second quarter. CWM LLC now owns 8,491 shares of the rocket manufacturer's stock worth $304,000 after purchasing an additional 556 shares during the last quarter. Vanguard Personalized Indexing Management LLC boosted its position in Rocket Lab by 69.5% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 23,940 shares of the rocket manufacturer's stock worth $856,000 after purchasing an additional 9,817 shares during the last quarter. Finally, Hobbs Group Advisors LLC purchased a new position in shares of Rocket Lab during the 2nd quarter valued at $358,000. 71.78% of the stock is owned by institutional investors and hedge funds.

Rocket Lab Company Profile

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.

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