Rocket Lab Corporation $RKLB Stock: Yousif Capital Management LLC Cuts Holdings

Key Points

• Yousif Capital Management cut its Rocket Lab holdings by 68.2% in the third quarter, selling 15,748 shares and ending the period with 7,357 shares valued at about $513,000.
• Institutional investors made mixed moves: some increased or initiated positions, while institutional ownership overall stood at 71.78% of Rocket Lab shares.
• Rocket Lab’s latest quarterly results missed EPS expectations but topped revenue estimates. Analysts’ average rating was “Moderate Buy,” with an average price target of $102.05.

Yousif Capital Management LLC cut its holdings in Rocket Lab Corporation (NASDAQ:RKLB - Free Report) by 68.2% in the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 7,357 shares of the rocket manufacturer's stock after selling 15,748 shares during the period. Yousif Capital Management LLC's holdings in Rocket Lab were worth $513,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in RKLB. Lake Street Private Wealth LLC grew its position in shares of Rocket Lab by 13.5% in the third quarter. Lake Street Private Wealth LLC now owns 4,208 shares of the rocket manufacturer's stock valued at $293,000 after purchasing an additional 500 shares during the period. Royal Fund Management LLC increased its stake in Rocket Lab by 3,767.1% in the third quarter. Royal Fund Management LLC now owns 91,147 shares of the rocket manufacturer's stock valued at $6,351,000 after purchasing an additional 88,790 shares during the last quarter. Root Financial Partners LLC purchased a new position in Rocket Lab during the third quarter worth about $95,000. Woodward Diversified Capital LLC purchased a new position in Rocket Lab during the third quarter worth about $245,000. Finally, Axxcess Wealth Management LLC lifted its position in Rocket Lab by 407.5% during the third quarter. Axxcess Wealth Management LLC now owns 11,729 shares of the rocket manufacturer's stock worth $811,000 after buying an additional 9,418 shares during the period. Hedge funds and other institutional investors own 71.78% of the company's stock.

Rocket Lab Price Performance

Shares of Rocket Lab stock opened at $54.43 on Wednesday. Rocket Lab Corporation has a twelve month low of $37.57 and a twelve month high of $151.00. The stock has a market capitalization of $32.57 billion, a P/E ratio of -201.59 and a beta of 3.15. 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 business's fifty day moving average price is $63.54 and its 200 day moving average price is $79.57.

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 (EPS) for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.02). The firm had revenue of $234.07 million for the quarter, compared to analysts' expectations 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, research analysts anticipate that Rocket Lab Corporation will post -0.20 earnings per share for the current year.

Insiders Place Their Bets

In other 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 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 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 Spice sold 140,157 shares of the business's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $70.82, for a total value of $9,925,918.74. Following the sale, the chief financial officer owned 1,155,967 shares of the company's stock, valued at $81,865,582.94. The trade was a 10.81% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 551,832 shares of company stock worth $34,940,037. 8.40% of the stock is owned by insiders.

Key Headlines Impacting Rocket Lab

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

• Positive Sentiment: Rocket Lab successfully completed its 99th Electron mission, deploying an Earth-imaging satellite for Japan’s iQPS. The flight reinforces Electron’s launch reliability and operating track record. Mission Success: Rocket Lab Launches 99th Electron Mission
• Positive Sentiment: Recent coverage highlights that Space Systems generates substantially more revenue than launch services, while the Iridium deal could broaden Rocket Lab’s growth opportunity. A record backlog and rising revenue also support the longer-term outlook. Rocket Lab’s Space Systems Division Dwarfs Launch Revenue
• Positive Sentiment: NASA has cited Rocket Lab as a potential launch provider for future commercial space-station missions. That could open another market as the International Space Station approaches retirement, although Neutron is central to the opportunity. Rocket Lab Is Emerging As A Key Launch Option For Commercial Stations
• Neutral Sentiment: Neutron is viewed as a potential catalyst that could materially change Rocket Lab’s growth outlook, but it has not flown yet. One analyst expects its debut in late fiscal Q2 2027 and says the delay does not undermine the investment case. Analyst Sticks to Target Despite Neutron Setback
• Negative Sentiment: Globalstar raised concerns that Rocket Lab’s supplier relationship could give it an incentive to favor Iridium, creating potential commercial and regulatory friction around the deal. Iridium Deal Draws Globalstar Concerns
• Negative Sentiment: Other commentary warns that cash burn, elevated valuation and sensitivity to borrowing costs could keep the stock volatile. A separate investor cautioned that turbulence may continue, while coverage also flagged a planned $7.7 million CFO share sale. Rocket Lab Cash Burn and Earnings Preview

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on RKLB. TD Cowen reissued a "buy" rating and issued a $90.00 price target on shares of Rocket Lab in a research note on Thursday, October 15th. Raymond James Financial assumed coverage on shares of Rocket Lab in a research note on Friday, September 11th. They set an "outperform" rating and a $80.00 price objective for the company. Needham & Company LLC reiterated a "buy" rating and set a $120.00 price objective on shares of Rocket Lab in a report on Friday, October 16th. Citigroup reissued a "market outperform" rating on shares of Rocket Lab in a research report on Friday, October 16th. Finally, Bank of America lowered their target price on shares of Rocket Lab from $115.00 to $110.00 and set a "buy" rating for the company in a report on Monday, August 31st. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $102.05.

About Rocket Lab

Rocket Lab USA, Inc is a space and defense company that develops and operates launch vehicles, spacecraft, satellite components and related space systems. The company serves government, commercial and scientific customers seeking access to orbit and other space-based capabilities.

Rocket Lab's launch business is centered on Electron, a small orbital launch vehicle designed to carry satellites and other payloads into low Earth orbit. The company also develops specialized launch and hypersonic test services through programs such as HASTE, while its Neutron vehicle is intended to provide larger payload capacity and support future commercial and government missions.

Through its space systems business, Rocket Lab produces satellite platforms, flight computers, power systems, solar cells, reaction wheels, separation systems, radios and other components used in spacecraft.

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