Rocket Lab Corporation $RKLB Shares Acquired by Capital World Investors

Key Points

• Capital World Investors increased its Rocket Lab stake by 12% in Q4, adding 1.74 million shares and bringing its total holding to 16.2 million shares worth about $1.13 billion.
• Rocket Lab continues to draw strong analyst support, with several firms raising price targets and the stock carrying a Moderate Buy consensus and an average target price of $98.88.
• The company reported 63.4% year-over-year revenue growth and $200.35 million in quarterly revenue, while insiders have sold shares recently, including notable sales by an SVP and a director.

Capital World Investors lifted its position in shares of Rocket Lab Corporation (NASDAQ:RKLB - Free Report) by 12.0% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 16,200,726 shares of the rocket manufacturer's stock after purchasing an additional 1,738,623 shares during the period. Capital World Investors owned about 3.03% of Rocket Lab worth $1,130,172,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the company. Atlantic Private Wealth LLC lifted its position in shares of Rocket Lab by 92.3% during the fourth quarter. Atlantic Private Wealth LLC now owns 500 shares of the rocket manufacturer's stock worth $35,000 after purchasing an additional 240 shares in the last quarter. Havemeyer Place LP acquired a new position in shares of Rocket Lab during the fourth quarter worth $130,000. Fjarde AP Fonden Fourth Swedish National Pension Fund lifted its position in shares of Rocket Lab by 2.3% during the fourth quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 100,200 shares of the rocket manufacturer's stock worth $6,990,000 after purchasing an additional 2,300 shares in the last quarter. WINTON GROUP Ltd acquired a new position in shares of Rocket Lab during the fourth quarter worth $1,807,000. Finally, Parallel Advisors LLC raised its holdings in Rocket Lab by 14.2% in the fourth quarter. Parallel Advisors LLC now owns 2,612 shares of the rocket manufacturer's stock valued at $182,000 after acquiring an additional 324 shares in the last quarter. 71.78% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms recently issued reports on RKLB. Deutsche Bank Aktiengesellschaft upped their price target on shares of Rocket Lab from $73.00 to $120.00 and gave the company a "buy" rating in a report on Tuesday, May 12th. Stifel Nicolaus set a $132.00 price target on shares of Rocket Lab in a report on Thursday. Roth Mkm upped their price target on shares of Rocket Lab from $90.00 to $100.00 and gave the company a "buy" rating in a report on Friday, April 17th. Craig Hallum raised shares of Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 price target on the stock in a report on Friday, May 8th. Finally, Wells Fargo & Company began coverage on shares of Rocket Lab in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $60.00 price target on the stock. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Rocket Lab presently has a consensus rating of "Moderate Buy" and an average target price of $98.88.

Insider Buying and Selling

In other Rocket Lab news, SVP Arjun Kampani sold 23,804 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $147.43, for a total transaction of $3,509,423.72. Following the completion of the sale, the senior vice president directly owned 352,705 shares of the company's stock, valued at approximately $51,999,298.15. This represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Alexander R. Slusky sold 40,000 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $123.60, for a total transaction of $4,944,000.00. Following the sale, the director directly owned 334,675 shares of the company's stock, valued at $41,365,830. This represents a 10.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 485,515 shares of company stock worth $66,909,882 in the last ninety days. Insiders own 8.40% of the company's stock.

Rocket Lab Price Performance

Rocket Lab stock opened at $110.08 on Monday. The company has a 50-day simple moving average of $97.02 and a 200-day simple moving average of $78.94. The firm has a market capitalization of $63.71 billion, a P/E ratio of -344.00 and a beta of 2.48. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47. Rocket Lab Corporation has a one year low of $25.24 and a one year high of $151.00.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.07). The firm had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. Rocket Lab's revenue was up 63.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.12) EPS. As a group, equities analysts expect that Rocket Lab Corporation will post -0.29 earnings per share for the current year.

Rocket Lab News Roundup

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

• Positive Sentiment: Wall Street sentiment improved after Stifel raised its price target on Rocket Lab to a Street-high $132 from $110 and kept a Buy rating, reinforcing the view that growth can continue. Rocket Lab Stock (RKLB) Lands a New Street-High Target as Top Stifel Analyst Sees Stronger Growth Ahead
• Positive Sentiment: Recent coverage continues to highlight Rocket Lab’s strong operating momentum, including its first-ever $200 million revenue quarter, 63%+ year-over-year revenue growth, expanding gross margin, and a backlog that reached $2.2 billion. Rocket Lab: Don't Hold Your Breath On Neutron
• Positive Sentiment: The broader space sector is getting a lift from SpaceX IPO excitement, and Rocket Lab is being viewed as a public-market way to play the space race, which has helped sentiment across RKLB and other space stocks. There’s More to Space Stocks Than SpaceX
• Neutral Sentiment: Some analysts and commentators are warning that the stock’s big rally may have outrun fundamentals, pointing to valuation risk and possible volatility if expectations become harder to beat. We’re Holding Rocket Lab Despite 356% Rally
• Negative Sentiment: Bearish pieces argue investors should be cautious ahead of a possible SpaceX IPO “reality check,” with concerns that competition and sky-high expectations could eventually pressure RKLB’s multiple. Rocket Lab: Sell Before The SpaceX IPO Reality Check

Rocket Lab 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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