Rocket Lab Corporation (NASDAQ:RKLB) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Rocket Lab has a consensus analyst rating of “Moderate Buy”, with 12 buy ratings and 3 strong buy ratings among 21 firms covering the stock. The average 12-month price target is about $102.76.
• The company’s recent quarterly results showed revenue growth of 63.4% year over year to $200.35 million, while earnings per share matched expectations at -$0.07. Analysts still expect Rocket Lab to remain unprofitable this year.
• Rocket Lab is also seeing notable market and trading activity, including its upcoming addition to the Nasdaq-100 on June 22 and significant insider selling in recent months. Institutional investors continue to hold a large stake, owning 71.78% of the company.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twenty-one ratings firms that are presently covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, twelve have assigned a buy rating and three have issued a strong buy rating on the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $102.7647.

A number of equities analysts have recently commented on the company. Citigroup reaffirmed an "outperform" rating on shares of Rocket Lab in a report on Friday, May 8th. BTIG Research reaffirmed a "hold" rating on shares of Rocket Lab in a report on Tuesday, May 12th. Wells Fargo & Company assumed coverage on Rocket Lab in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $60.00 price target for the company. Roth Mkm raised their price target on Rocket Lab from $90.00 to $100.00 and gave the stock a "buy" rating in a report on Friday, April 17th. Finally, Craig Hallum raised Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 price target for the company in a report on Friday, May 8th.

Insider Transactions at Rocket Lab

In other news, insider Frank Klein sold 44,390 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $142.57, for a total value of $6,328,682.30. Following the completion of the transaction, the insider directly owned 1,043,847 shares of the company's stock, valued at $148,821,266.79. This trade represents a 4.08% decrease in their ownership of the stock. 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, Director Alexander R. Slusky sold 100,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $118.08, for a total value of $11,808,000.00. Following the completion of the transaction, the director directly owned 434,675 shares of the company's stock, valued at $51,326,424. The trade was a 18.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 485,515 shares of company stock valued at $66,909,882. 8.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rocket Lab

Several large investors have recently added to or reduced their stakes in RKLB. Swedbank AB increased its holdings in Rocket Lab by 8.2% during the 4th quarter. Swedbank AB now owns 509,250 shares of the rocket manufacturer's stock valued at $35,525,000 after purchasing an additional 38,770 shares during the period. Firsthand Capital Management Inc. increased its holdings in Rocket Lab by 40.0% during the 3rd quarter. Firsthand Capital Management Inc. now owns 70,000 shares of the rocket manufacturer's stock valued at $3,354,000 after purchasing an additional 20,000 shares during the period. Swiss National Bank increased its holdings in Rocket Lab by 67.7% during the 3rd quarter. Swiss National Bank now owns 1,243,630 shares of the rocket manufacturer's stock valued at $59,582,000 after purchasing an additional 501,830 shares during the period. Vanguard Group Inc. increased its holdings in Rocket Lab by 13.4% during the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock valued at $3,308,033,000 after purchasing an additional 5,610,469 shares during the period. Finally, State of New Jersey Common Pension Fund D increased its holdings in Rocket Lab by 14.4% during the 3rd quarter. State of New Jersey Common Pension Fund D now owns 153,106 shares of the rocket manufacturer's stock valued at $7,335,000 after purchasing an additional 19,304 shares during the period. Institutional investors own 71.78% of the company's stock.

Rocket Lab Price Performance

Shares of NASDAQ RKLB opened at $102.39 on Monday. The stock has a fifty day simple moving average of $101.62 and a two-hundred day simple moving average of $81.30. Rocket Lab has a 1-year low of $25.24 and a 1-year high of $151.00. The firm has a market cap of $59.26 billion, a price-to-earnings ratio of -319.97 and a beta of 2.48. The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, meeting the consensus estimate of ($0.07). Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The business had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. During the same period in the prior year, the company earned ($0.12) earnings per share. Rocket Lab's revenue was up 63.4% compared to the same quarter last year. Analysts anticipate that Rocket Lab 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: Rocket Lab announced that it will join the Nasdaq-100 Index, effective June 22. That inclusion is a bullish technical and sentiment driver because it can increase visibility, attract index-tracking funds, and broaden institutional demand. Rocket Lab To Join The Nasdaq-100 Index
• Positive Sentiment: Several reports note that RKLB is benefiting from a “halo trade” in space stocks tied to SpaceX’s historic public debut, with traders rotating into space-related names as the industry gets more attention. Why Rocket Lab (RKLB) Stock Is Up Today
• Positive Sentiment: Rocket Lab’s recent business momentum also supports the stock, with Q1 revenue up 63.4% year over year to $200.35 million and results beating revenue estimates, reinforcing the growth story behind the company. Rocket Lab To Join The Nasdaq-100 Index
• Neutral Sentiment: Commentary from analysts and media has turned more upbeat on the stock, but much of the move appears to be driven by index inclusion and sector momentum rather than a new operating update. Space Stock Rocket Lab and 4 Others Are Joining the Nasdaq 100
• Negative Sentiment: Near-term volatility could stay elevated because the stock has also been caught in broader space-stock swings around SpaceX’s debut, and some traders are treating the group as a relative-value trade rather than a pure Rocket Lab fundamental story. Virgin Galactic Craters 24%, Rocket Lab Drops 8%, AST SpaceMobile Falls 10% as SpaceX Hype Triggers a Space-Stock Shakeout

Rocket Lab Company 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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