Rocket Lab Corporation (NASDAQ:RKLB) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately bullish: 22 firms collectively rate Rocket Lab “Moderate Buy,” including 13 buys and three strong buys, with an average 12-month price target of $110.29.
• Revenue growth remains strong but profitability is weak: Quarterly revenue rose 63.4% year over year to $200.35 million and matched EPS expectations, but the company reported a $0.07 per-share loss, negative margins and analysts expect a full-year loss.
• Insider selling is a notable risk: Insiders sold 3.85 million shares worth approximately $362.8 million over the past 90 days, although institutional investors own a substantial 71.78% of the stock.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-two 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, thirteen have given a buy rating and three have issued a strong buy rating on the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $110.2941.

RKLB has been the topic of a number of research analyst reports. New Street Research initiated coverage on Rocket Lab in a research note on Wednesday, May 13th. They issued a "buy" rating and a $150.00 price target on the stock. Deutsche Bank Aktiengesellschaft increased their price objective on Rocket Lab from $73.00 to $120.00 and gave the company a "buy" rating in a research note on Tuesday, May 12th. Cantor Fitzgerald restated an "overweight" rating and issued a $96.00 price objective on shares of Rocket Lab in a report on Tuesday, June 30th. Stifel Nicolaus set a $132.00 target price on shares of Rocket Lab in a research note on Thursday, June 4th. Finally, KeyCorp raised shares of Rocket Lab from a "sector weight" rating to an "overweight" rating and set a $135.00 target price for the company in a report on Monday, June 15th.

Rocket Lab Trading Up 8.4%

Shares of Rocket Lab stock opened at $70.43 on Tuesday. The firm has a market capitalization of $40.76 billion, a PE ratio of -220.09 and a beta of 2.54. Rocket Lab has a twelve month low of $37.57 and a twelve month high of $151.00. The firm's 50-day moving average price is $94.41 and its 200 day moving average price is $86.23. 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 posted its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting 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 company had revenue of $200.35 million for the quarter, compared to analysts' expectations of $189.65 million. During the same period in the previous year, the firm posted ($0.12) EPS. Rocket Lab's revenue was up 63.4% compared to the same quarter last year. On average, sell-side analysts predict that Rocket Lab will post -0.26 EPS for the current fiscal year.

Insider Activity

In other Rocket Lab news, insider Frank Klein sold 44,390 shares of the firm's 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 $6,328,682.30. Following 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 position. The transaction was disclosed in a document filed with the SEC, which is available 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, CEO Peter Beck sold 1,298,622 shares of the business's stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $84.92, for a total value of $110,278,980.24. Following the transaction, the chief executive officer owned 2,715,181 shares in the company, valued at approximately $230,573,170.52. This represents a 32.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 3,849,294 shares of company stock valued at $362,816,208 in the last ninety days. 8.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

Institutional investors have recently added to or reduced their stakes in the stock. Swedbank AB raised its holdings in shares of Rocket Lab by 8.2% in 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 in the last quarter. Vanguard Group Inc. grew its stake in shares of Rocket Lab by 13.4% during the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock worth $3,308,033,000 after purchasing an additional 5,610,469 shares in the last quarter. Katamaran Capital LLP grew its stake in shares of Rocket Lab by 86.2% during the first quarter. Katamaran Capital LLP now owns 19,808 shares of the rocket manufacturer's stock worth $1,272,000 after purchasing an additional 9,172 shares in the last quarter. Westfield Capital Management Co. LP increased its holdings in Rocket Lab by 6.3% in the fourth quarter. Westfield Capital Management Co. LP now owns 2,592,443 shares of the rocket manufacturer's stock valued at $180,849,000 after buying an additional 154,623 shares during the last quarter. Finally, Baillie Gifford & Co. raised its stake in Rocket Lab by 47.2% in 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 in the last quarter. Hedge funds and other institutional investors own 71.78% of the company's stock.

More Rocket Lab News

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

• Positive Sentiment: The U.S. Space Force awarded Rocket Lab a $266 million contract to conduct 12 to 18 hypersonic missile tests. The award broadens Rocket Lab’s addressable market and adds to several hundred million dollars in missile-defense contracts, potentially accelerating revenue growth and diversifying the company beyond space launches. U.S. Air Force Taps Rocket Lab for Hypersonic Missiles
• Positive Sentiment: Coverage of Rocket Lab’s planned $8 billion acquisition of Iridium argues that the deal could transform the company into a diversified space-services provider, with greater recurring revenue, profitability and free-cash-flow potential as soon as 2027. Rocket Lab’s $8 Billion Iridium Acquisition
• Positive Sentiment: Analysts and commentators view the recent pullback into the $60–$68 range as a potentially attractive entry point, citing Rocket Lab’s leadership in space systems and long-term expansion prospects. Is this the Last Quarter to Buy Rocket Lab at a Steep Discount?
• Neutral Sentiment: Investors are looking ahead to Rocket Lab’s August 10 earnings report. Revenue growth and improving profitability may support the stock, but the company remains unprofitable, making the outlook and cash-flow commentary especially important. Rocket Lab Reports Earnings on Aug. 10
• Neutral Sentiment: Comparisons with Redwire and AST SpaceMobile reinforce Rocket Lab’s position as a rapidly scaling, vertically integrated space company, but also highlight competition and the uncertainty surrounding large acquisitions. Redwire vs. Rocket Lab

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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