Rocket Lab Corporation (NASDAQ:RKLB) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Rocket Lab has a consensus analyst rating of “Moderate Buy” from 20 brokerages, with a 12-month average price target of about $97.19.
• The company recently reported Q1 earnings in line with expectations at a loss of $0.07 per share, while revenue came in above estimates at $200.35 million, up 63.4% year over year.
• Despite the bullish analyst tone and strong growth, the stock has seen insider selling and investor concern over a planned $3 billion stock offering, which raised dilution worries.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) have received an average rating of "Moderate Buy" from the twenty ratings firms that are covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, eleven have assigned a buy rating and three have assigned a strong buy rating to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $97.1875.

A number of analysts recently issued reports on the stock. BTIG Research restated a "hold" rating on shares of Rocket Lab in a research note on Tuesday, May 12th. Citizens Jmp lifted their price target on shares of Rocket Lab from $85.00 to $95.00 and gave the stock a "market outperform" rating in a research note on Friday, May 8th. Roth Mkm lifted their price target on shares of Rocket Lab from $90.00 to $100.00 and gave the stock a "buy" rating in a research note on Friday, April 17th. Cantor Fitzgerald restated an "overweight" rating and issued a $85.00 price target on shares of Rocket Lab in a research note on Friday, March 13th. Finally, Citigroup reiterated an "outperform" rating on shares of Rocket Lab in a research note on Friday, May 8th.

Rocket Lab Trading Up 5.5%

RKLB opened at $134.28 on Thursday. The firm has a market capitalization of $77.71 billion, a P/E ratio of -419.63 and a beta of 2.30. The firm's 50 day moving average is $82.44 and its 200-day moving average is $72.28. Rocket Lab has a 52-week low of $23.92 and a 52-week high of $138.38. The company has a quick ratio of 4.02, a current ratio of 4.47 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.07). The business had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The business's revenue was up 63.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.12) earnings per share. Analysts expect that Rocket Lab will post -0.22 EPS for the current fiscal year.

Insider Activity

In other Rocket Lab news, Director Alexander R. Slusky sold 100,000 shares of the business's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $118.08, for a total transaction of $11,808,000.00. Following the completion of the sale, the director owned 434,675 shares in the company, valued at $51,326,424. The trade was a 18.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Merline Saintil sold 18,126 shares of the business's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $75.04, for a total transaction of $1,360,175.04. Following the sale, the director owned 261,903 shares of the company's stock, valued at approximately $19,653,201.12. The trade was a 6.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 333,449 shares of company stock valued at $28,295,233 over the last quarter. 8.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently modified their holdings of the company. Western Wealth Management LLC boosted its holdings in shares of Rocket Lab by 4.6% during the first quarter. Western Wealth Management LLC now owns 4,088 shares of the rocket manufacturer's stock valued at $263,000 after acquiring an additional 180 shares during the period. Janus Henderson Group PLC boosted its holdings in shares of Rocket Lab by 8.5% during the first quarter. Janus Henderson Group PLC now owns 198,013 shares of the rocket manufacturer's stock valued at $12,715,000 after acquiring an additional 15,558 shares during the period. Centaurus Financial Inc. boosted its holdings in shares of Rocket Lab by 23.9% during the first quarter. Centaurus Financial Inc. now owns 5,891 shares of the rocket manufacturer's stock valued at $378,000 after acquiring an additional 1,137 shares during the period. Oddo BHF Asset Management Sas acquired a new position in shares of Rocket Lab during the first quarter valued at $3,691,000. Finally, Amundi boosted its holdings in shares of Rocket Lab by 57.5% during the first quarter. Amundi now owns 1,784,109 shares of the rocket manufacturer's stock valued at $114,575,000 after acquiring an additional 651,551 shares during the period. Institutional investors and hedge funds own 71.78% of the company's stock.

Key Headlines Impacting Rocket Lab

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

• Positive Sentiment: Investor sentiment remains upbeat after Rocket Lab’s strong Q1 results, with revenue up 63% year over year to about $200.4 million and earnings in line with expectations. Analysts also remain constructive, with multiple firms maintaining bullish ratings and several raising price targets after the earnings report. How Is Rocket Lab Strengthening Its End-to-End Space Model?
• Positive Sentiment: Optimism has also been supported by Rocket Lab’s expanding “end-to-end” space model, including launch services, spacecraft systems, and mission operations, which investors view as a way to broaden revenue streams and deepen its competitive position.
• Positive Sentiment: Recent buzz around the Motiv Space Systems acquisition and broader space-sector momentum has added to the stock’s bullish narrative, with traders focusing on Rocket Lab’s growth, backlog, and future Neutron rocket milestones. Rocket Lab Stock (RKLB) Opinions on Motiv Space Systems Acquisition
• Neutral Sentiment: Analyst commentary remains supportive overall, but valuation concerns and the possibility of a pullback have led some investors to stay cautious after the stock’s steep run-up.
• Negative Sentiment: Shares fell in extended trading after Rocket Lab filed to offer and sell up to $3 billion of common stock, raising dilution concerns for existing shareholders and triggering a negative reaction from the market. Rocket Lab Stock Falls After The Close: What's Happening?

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.