Sterling Capital Management LLC Has $1.20 Million Holdings in Rocket Lab Corporation $RKLB

Key Points

• Sterling Capital Management cut its Rocket Lab stake by 30.8% in the first quarter, leaving it with 18,718 shares valued at about $1.2 million.
• Insider selling has been significant, with SVP Arjun Kampani and CFO Adam C. Spice both selling shares recently; company insiders sold 573,515 shares worth $76.4 million over the last 90 days.
• Rocket Lab’s latest quarter showed 63.4% year-over-year revenue growth to $200.35 million, but the company still posted a loss and analysts expect negative EPS for the full year.

Sterling Capital Management LLC trimmed its position in Rocket Lab Corporation (NASDAQ:RKLB - Free Report) by 30.8% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 18,718 shares of the rocket manufacturer's stock after selling 8,313 shares during the quarter. Sterling Capital Management LLC's holdings in Rocket Lab were worth $1,202,000 at the end of the most recent quarter.

Several other institutional investors have also made changes to their positions in RKLB. Baillie Gifford & Co. grew its position in Rocket Lab by 47.2% during the fourth quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer's stock valued at $1,245,317,000 after purchasing an additional 5,725,536 shares in the last quarter. Vanguard Group Inc. lifted its position in Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock worth $3,308,033,000 after buying an additional 5,610,469 shares in the last quarter. Norges Bank purchased a new stake in Rocket Lab in the 4th quarter worth approximately $341,036,000. Alliancebernstein L.P. boosted its stake in shares of Rocket Lab by 818.8% during the 3rd quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer's stock valued at $104,929,000 after buying an additional 1,951,755 shares during the period. Finally, Capital World Investors grew its holdings in shares of Rocket Lab by 12.0% during the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer's stock valued at $1,130,172,000 after acquiring an additional 1,738,623 shares in the last quarter. 71.78% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, SVP Arjun Kampani sold 88,000 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $107.98, for a total transaction of $9,502,240.00. Following the completion of the transaction, the senior vice president directly owned 264,705 shares in the company, valued at $28,582,845.90. The trade was a 24.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Adam C. Spice sold 62,744 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $142.57, for a total value of $8,945,412.08. Following the completion of the sale, the chief financial officer directly owned 983,049 shares of the company's stock, valued at $140,153,295.93. This represents a 6.00% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 573,515 shares of company stock valued at $76,412,122. Corporate insiders own 8.40% of the company's stock.

Rocket Lab Trading Up 15.9%

Shares of RKLB stock opened at $97.95 on Tuesday. Rocket Lab Corporation has a 12 month low of $33.73 and a 12 month high of $151.00. The company has a market cap of $56.69 billion, a PE ratio of -306.09 and a beta of 2.48. The company has a quick ratio of 4.02, a current ratio of 4.47 and a debt-to-equity ratio of 0.02. The business's 50 day moving average is $107.78 and its two-hundred day moving average is $85.40.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The business had revenue of $200.35 million during the quarter, compared to analysts' expectations of $189.65 million. During the same period in the previous year, the company earned ($0.12) earnings per share. Rocket Lab's revenue for the quarter was up 63.4% on a year-over-year basis. Equities analysts predict that Rocket Lab Corporation will post -0.29 EPS for the current year.

Key Stories Impacting Rocket Lab

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

• Positive Sentiment: The Iridium acquisition gives Rocket Lab a more predictable revenue stream and could improve its financial profile by adding higher-margin subscription-like cash flow. Reuters article
• Positive Sentiment: The deal strengthens Rocket Lab’s position as a possible challenger to SpaceX by combining launch services with satellite communications and spectrum assets. WSJ article
• Positive Sentiment: Iridium shareholders are receiving a premium, and the market appears to be rewarding both companies for the strategic logic of the combination. Yahoo Finance article
• Neutral Sentiment: The transaction is large and could create execution risk, including integration challenges, dilution from the stock component, and the need to continue funding Rocket Lab’s heavy development spending. Motley Fool article
• Negative Sentiment: Some investors may worry that the deal increases complexity and valuation pressure at a time when Rocket Lab still has a history of losses and a long path to profitability. Motley Fool article

Analyst Upgrades and Downgrades

RKLB has been the topic of a number of research reports. KeyCorp raised shares of Rocket Lab from a "sector weight" rating to an "overweight" rating and set a $135.00 price target on the stock in a research note on Monday, June 15th. Stifel Nicolaus set a $132.00 price objective on Rocket Lab in a research report on Thursday, June 4th. Weiss Ratings restated a "sell (d-)" rating on shares of Rocket Lab in a research note on Tuesday, April 21st. Deutsche Bank Aktiengesellschaft upped their target price on Rocket Lab from $73.00 to $120.00 and gave the stock a "buy" rating in a research report on Tuesday, May 12th. Finally, Clear Str raised Rocket Lab to a "strong-buy" rating in a research note on Wednesday, March 18th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $105.82.

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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