Reynders McVeigh Capital Management LLC Takes $129.57 Million Position in Rocket Lab Corporation $RKLB

Key Points

• Reynders McVeigh Capital Management purchased 1.27 million Rocket Lab shares worth approximately $129.6 million, making the stock its fourth-largest portfolio holding and representing about 0.21% of the company.
• Institutional investors own 71.78% of Rocket Lab, while insiders sold 3.62 million shares worth roughly $312.9 million over the past quarter. Rocket Lab shares recently traded at $63.55, well below their 52-week high of $151.
• Rocket Lab’s latest quarterly revenue of $234.1 million exceeded estimates, but its $0.08-per-share loss was wider than expected. Analysts maintain a “Moderate Buy” consensus with an average price target of $107.32, although the company continues to report negative profitability.

Reynders McVeigh Capital Management LLC purchased a new position in shares of Rocket Lab Corporation (NASDAQ:RKLB - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 1,274,670 shares of the rocket manufacturer's stock, valued at approximately $129,570,000. Rocket Lab accounts for about 5.3% of Reynders McVeigh Capital Management LLC's investment portfolio, making the stock its 4th largest position. Reynders McVeigh Capital Management LLC owned approximately 0.21% of Rocket Lab at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. BlackRock Inc. acquired a new position in Rocket Lab during the second quarter valued at approximately $4,124,970,000. Capital World Investors increased its position in shares of Rocket Lab by 12.0% during the fourth 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 shares of Rocket Lab in the 2nd quarter valued at approximately $245,764,000. Geode Capital Management LLC boosted its stake in Rocket Lab by 10.1% during the 4th quarter. Geode Capital Management LLC now owns 9,004,724 shares of the rocket manufacturer's stock valued at $626,605,000 after acquiring an additional 825,158 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Rocket Lab during the fourth quarter worth about $341,036,000. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Rocket Lab

In other Rocket Lab news, insider Frank Klein sold 45,692 shares of the business's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $69.63, for a total transaction of $3,181,533.96. Following the completion of the transaction, the insider owned 961,295 shares of the company's stock, valued at $66,934,970.85. The trade was a 4.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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, SVP Arjun Kampani sold 88,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $107.98, for a total value of $9,502,240.00. Following the completion of the sale, the senior vice president directly owned 264,705 shares of the company's stock, valued at $28,582,845.90. This represents a 24.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,624,371 shares of company stock worth $312,944,881 over the last quarter. 8.40% of the stock is currently owned by corporate insiders.

Rocket Lab Trading Up 1.6%

Shares of RKLB traded up $1.00 during midday trading on Tuesday, hitting $63.55. The stock had a trading volume of 20,381,021 shares, compared to its average volume of 23,147,039. Rocket Lab Corporation has a fifty-two week low of $37.57 and a fifty-two week high of $151.00. The company has a current ratio of 5.48, a quick ratio of 4.98 and a debt-to-equity ratio of 0.01. The firm has a market cap of $38.03 billion, a P/E ratio of -235.36 and a beta of 2.60. The business has a 50-day simple moving average of $70.97 and a two-hundred day simple moving average of $84.50.

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

Rocket Lab News Roundup

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

• Positive Sentiment: Rocket Lab completed a $1.944 billion at-the-market equity offering, issuing approximately 29.3 million shares. The proceeds, together with existing liquidity, are expected to cover the cash portion of the Iridium acquisition and remove a key funding obstacle. Rocket Lab Fully Funds Iridium Acquisition
• Positive Sentiment: Iridium amended its existing $1.775 billion credit facility to permit the change of control, creating a longer-term financing structure supported by Iridium’s cash flow. Rocket Lab also terminated its previously arranged $3.6 billion bridge facility, reducing reliance on short-term acquisition debt and lowering financing risk. Rocket Lab Secures Funding for Iridium Buyout
• Positive Sentiment: The acquisition is expected to substantially expand Rocket Lab’s scale and strengthen its satellite communications and space-systems portfolio. Management has also indicated that additional space-industry acquisitions could follow. Rocket Lab expects Iridium deal to double its size
• Neutral Sentiment: Rocket Lab’s formal protest of NASA’s decision to award its Mars Telecommunications Network contract to Blue Origin keeps a potentially important government opportunity in focus, but the outcome and any financial benefit remain uncertain. Rocket Lab challenges NASA Mars contract award
• Negative Sentiment: The equity financing materially dilutes existing shareholders. Investors are also weighing the risk that Iridium’s slower growth could initially reduce Rocket Lab’s exceptionally high growth rate, while the deal remains exposed to regulatory, integration and execution risks. Rocket Lab rises on Iridium deal optimism

Wall Street Analysts Forecast Growth

RKLB has been the subject of a number of research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rocket Lab in a report on Friday, July 17th. Needham & Company LLC reiterated a "buy" rating on shares of Rocket Lab in a research report on Tuesday, August 11th. Stifel Nicolaus set a $132.00 target price on shares of Rocket Lab in a research report on Thursday, June 4th. KGI Securities raised Rocket Lab from a "neutral" rating to an "outperform" rating and set a $107.00 price objective for the company in a report on Monday, July 27th. Finally, Piper Sandler initiated coverage on Rocket Lab in a research report on Wednesday, July 15th. They issued a "neutral" rating and a $83.00 target price on the stock. Four equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Rocket Lab presently has a consensus rating of "Moderate Buy" and a consensus target price of $107.32.

Rocket Lab Profile

Rocket Lab USA, Inc is a space company that provides launch services and space systems for commercial, civil and national security customers. The company develops and operates launch vehicles, spacecraft and satellite components, with activities spanning the design, manufacture and operation of space hardware.

Rocket Lab's Electron rocket is a small-lift orbital launch vehicle designed to deploy small satellites. The company also develops HASTE, a suborbital test vehicle based on Electron technology, and is developing Neutron, a larger reusable launch vehicle intended to support a broader range of missions.

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