World Equity Group Inc. Acquires Shares of 7,624 Rocket Lab Corporation $RKLB

Key Points

• World Equity Group disclosed a new first-quarter stake in Rocket Lab, buying 7,624 shares worth about $490,000.
• Institutional interest in Rocket Lab remains strong overall, with major holders like Vanguard, Baillie Gifford, and others increasing positions; about 71.78% of the stock is owned by institutional investors.
• Despite upbeat analyst targets, Rocket Lab is facing some pressure from the market: several insiders sold shares, and investors are watching concerns around a possible $8 billion Iridium acquisition and broader weakness in space stocks.

World Equity Group Inc. acquired a new stake in shares of Rocket Lab Corporation (NASDAQ:RKLB - Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 7,624 shares of the rocket manufacturer's stock, valued at approximately $490,000.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Baillie Gifford & Co. increased its position in shares of 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 buying an additional 5,725,536 shares during the period. Vanguard Group Inc. lifted its holdings in Rocket Lab by 13.4% in the fourth 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 during the period. Norges Bank bought a new stake in Rocket Lab during the 4th quarter valued at approximately $341,036,000. Alliancebernstein L.P. boosted its position in 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 acquiring an additional 1,951,755 shares in the last quarter. 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 worth $1,130,172,000 after acquiring an additional 1,738,623 shares during the period. 71.78% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages recently weighed in on RKLB. TD Cowen upped their price target on Rocket Lab from $90.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. KGI Securities began coverage on shares of Rocket Lab in a research report on Thursday, June 11th. They issued a "neutral" rating and a $105.00 target price on the stock. BTIG Research reiterated a "hold" rating on shares of Rocket Lab in a research note on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Rocket Lab from $73.00 to $120.00 and gave the stock a "buy" rating in a research note on Tuesday, May 12th. Finally, Bank of America raised their target price on shares of Rocket Lab from $105.00 to $115.00 and gave the company a "buy" rating in a research note on Tuesday, June 30th. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Rocket Lab presently has a consensus rating of "Moderate Buy" and a consensus price target of $110.18.

Insider Activity at Rocket Lab

In other Rocket Lab news, CFO Adam C. Spice sold 62,744 shares of Rocket Lab 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 owned 983,049 shares of the company's stock, valued at approximately $140,153,295.93. The trade was a 6.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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, insider Frank Klein sold 44,390 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $142.57, for a total transaction of $6,328,682.30. Following the sale, the insider owned 1,043,847 shares of the company's stock, valued at approximately $148,821,266.79. This represents a 4.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold 3,849,294 shares of company stock valued at $362,816,208 over the last quarter. 8.40% of the stock is owned by company insiders.

Rocket Lab Price Performance

NASDAQ RKLB opened at $67.62 on Monday. Rocket Lab Corporation has a one year low of $37.57 and a one year high of $151.00. The stock has a 50-day moving average of $107.97 and a 200 day moving average of $87.27. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47. The company has a market capitalization of $39.14 billion, a price-to-earnings ratio of -211.31 and a beta of 2.54.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, meeting the consensus estimate 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 for the quarter, compared to analysts' expectations of $189.65 million. During the same quarter in the prior year, the business earned ($0.12) EPS. The business's revenue for the quarter was up 63.4% compared to the same quarter last year. On average, sell-side analysts forecast that Rocket Lab Corporation will post -0.26 EPS for the current year.

Key Stories Impacting Rocket Lab

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

• Negative Sentiment: Piper Sandler initiated coverage with a Neutral/Hold view, signaling limited near-term upside and adding to investor caution after the stock had already been sliding. Rocket Lab Stock Plunges After Piper Sandler Starts Coverage at Neutral
• Negative Sentiment: Investors are also worried about Rocket Lab’s pending $8 billion Iridium acquisition, including possible share dilution and the need for $3.6 billion in bridge financing, which could weigh on the stock. Why Is Rocket Lab Stock Falling on Thursday?
• Negative Sentiment: Recent reports point to a broader selloff across space stocks, with fear around debt, volatility, and sector sentiment spilling over into RKLB. AST SpaceMobile Stock Sinks as SpaceX Fallout Rattles Space Sector
• Negative Sentiment: Technical traders say RKLB broke an important support level, raising the risk of further downside if buyers do not step in soon. Stock of the Day: Where Is the Bottom for Rocket Lab?

About Rocket Lab

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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