Rocket Lab Corporation (NASDAQ:RKLB) Sees Significant Increase in Short Interest

Key Points

• Short interest jumped to 31,516,624 shares as of April 15 — a 26.6% increase from March 31 — equal to about 6.3% of the stock and a short-interest ratio of 1.4 days.
• Insider selling accelerated in March (notably SVP Arjun Kampani and Frank Klein), with insiders selling 233,449 shares (~$16.49M) over the past three months while still owning 8.40% of the company.
• Shares traded at $77.02 (down ~2%), the stock has a market cap of $43.86B, and analysts hold a consensus "Moderate Buy" with a $83.31 target, including a notable upgrade from Morgan Stanley that raised its price objective to $105.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) saw a significant growth in short interest in April. As of April 15th, there was short interest totaling 31,516,624 shares, a growth of 26.6% from the March 31st total of 24,895,763 shares. Based on an average trading volume of 23,337,857 shares, the short-interest ratio is presently 1.4 days. Currently, 6.3% of the company's stock are sold short.

Insider Activity at Rocket Lab

In other news, SVP Arjun Kampani sold 23,711 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $71.95, for a total transaction of $1,706,006.45. Following the completion of the sale, the senior vice president owned 397,988 shares of the company's stock, valued at $28,635,236.60. This represents a 5.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Frank Klein sold 36,768 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $71.95, for a total transaction of $2,645,457.60. Following the sale, the insider directly owned 1,088,237 shares of the company's stock, valued at $78,298,652.15. This represents a 3.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 233,449 shares of company stock valued at $16,487,233 over the last three months. Insiders own 8.40% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Aventura Private Wealth LLC acquired a new position in Rocket Lab during the fourth quarter worth $25,000. Mcguire Capital Advisors Inc. acquired a new position in Rocket Lab during the fourth quarter worth $27,000. Zions Bancorporation National Association UT acquired a new position in Rocket Lab during the fourth quarter worth $28,000. Gordian Capital Singapore Pte Ltd acquired a new position in Rocket Lab during the fourth quarter worth $29,000. Finally, Reflection Asset Management acquired a new stake in Rocket Lab in the fourth quarter valued at $30,000. Institutional investors and hedge funds own 71.78% of the company's stock.

Rocket Lab Stock Down 2.0%

RKLB traded down $1.57 during trading hours on Wednesday, hitting $77.02. 17,592,819 shares of the company's stock were exchanged, compared to its average volume of 22,665,145. Rocket Lab has a 1-year low of $20.23 and a 1-year high of $99.58. The stock's 50-day moving average is $72.14 and its two-hundred day moving average is $68.10. The stock has a market cap of $43.86 billion, a price-to-earnings ratio of -208.16 and a beta of 2.20. The company has a quick ratio of 3.61, a current ratio of 4.08 and a debt-to-equity ratio of 0.10.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on RKLB shares. Morgan Stanley raised shares of Rocket Lab from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $67.00 to $105.00 in a research report on Friday, January 16th. Clear Str raised shares of Rocket Lab to a "strong-buy" rating in a research report on Wednesday, March 18th. TD Cowen reissued a "buy" rating on shares of Rocket Lab in a research report on Thursday, January 22nd. Roth Mkm increased their price objective on shares of Rocket Lab from $90.00 to $100.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Finally, Needham & Company LLC lowered their price objective on shares of Rocket Lab from $110.00 to $95.00 and set a "buy" rating for the company in a research report on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Rocket Lab has a consensus rating of "Moderate Buy" and a consensus price target of $83.31.

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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