Rocket Lab (NASDAQ:RKLB) Given New $130.00 Price Target at Citizens Jmp

Key Points

• Citizens JMP raised its price target on Rocket Lab from $95 to $130 and kept an outperform rating, implying about 30.7% upside from the current price.
• Other firms have also turned more bullish, including Roth Mkm lifting its target to $130 and Stifel setting $132, while the broader analyst consensus remains Moderate Buy with an average target of $107.88.
• Rocket Lab recently reported better-than-expected revenue of $200.35 million, up 63.4% year over year, and analysts are also reacting to its planned Iridium acquisition, which could add recurring revenue but brings integration and execution risk.

Rocket Lab (NASDAQ:RKLB - Get Free Report) had its price objective upped by analysts at Citizens Jmp from $95.00 to $130.00 in a research note issued on Tuesday,Benzinga reports. The firm currently has a "market outperform" rating on the rocket manufacturer's stock. Citizens Jmp's target price points to a potential upside of 30.68% from the company's current price.

A number of other brokerages have also commented on RKLB. Roth Mkm boosted their price objective on shares of Rocket Lab from $100.00 to $130.00 and gave the stock a "buy" rating in a research report on Monday. KGI Securities assumed coverage on Rocket Lab in a research note on Thursday, June 11th. They set a "neutral" rating and a $105.00 target price for the company. BTIG Research reiterated a "hold" rating on shares of Rocket Lab in a report on Tuesday, May 12th. Stifel Nicolaus set a $132.00 price objective on Rocket Lab in a research note on Thursday, June 4th. Finally, Citigroup reissued an "outperform" rating on shares of Rocket Lab in a research report on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $107.88.

Rocket Lab Price Performance

NASDAQ RKLB traded up $1.47 during trading on Tuesday, reaching $99.48. 8,120,871 shares of the company traded hands, compared to its average volume of 24,904,033. Rocket Lab has a 1-year low of $33.73 and a 1-year high of $151.00. The company has a market cap of $57.57 billion, a price-to-earnings ratio of -312.99 and a beta of 2.48. The stock's 50 day moving average price is $107.78 and its two-hundred day moving average price is $85.40. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47.

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 the consensus estimate of ($0.07). The business had revenue of $200.35 million for the quarter, compared to the consensus estimate of $189.65 million. Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The firm's quarterly revenue was up 63.4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.12) EPS. As a group, analysts anticipate that Rocket Lab will post -0.29 EPS for the current year.

Insider Buying and Selling

In related news, insider Frank Klein sold 44,390 shares of the stock in a transaction dated 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 directly 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed 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, CFO Adam C. Spice sold 62,744 shares of the company's stock in a transaction 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 sale, the chief financial officer owned 983,049 shares of the company's stock, valued at approximately $140,153,295.93. This trade represents a 6.00% decrease in their position. The SEC filing for this sale provides additional information. 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 a total of 573,515 shares of company stock worth $76,412,122 over the last three months. 8.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

A number of large investors have recently made changes to their positions in RKLB. Vanguard Group Inc. grew its stake in Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock worth $3,308,033,000 after acquiring an additional 5,610,469 shares in the last quarter. Baillie Gifford & Co. boosted its holdings in Rocket Lab by 47.2% during the fourth quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer's stock worth $1,245,317,000 after buying an additional 5,725,536 shares in the last quarter. Capital World Investors lifted its stake in Rocket Lab by 12.0% in the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer's stock valued at $1,130,172,000 after buying an additional 1,738,623 shares in the last quarter. State Street Corp raised its stake in Rocket Lab by 1.0% during the fourth quarter. State Street Corp now owns 12,520,223 shares of the rocket manufacturer's stock worth $873,411,000 after purchasing an additional 120,652 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Rocket Lab by 10.1% during the 4th quarter. Geode Capital Management LLC now owns 9,004,724 shares of the rocket manufacturer's stock worth $626,605,000 after acquiring an additional 825,158 shares in the last quarter. 71.78% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Rocket Lab

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

• Positive Sentiment: Rocket Lab announced a definitive agreement to acquire Iridium, adding a global satellite communications network, spectrum rights, and a large customer base to its existing launch and spacecraft businesses. Rocket Lab to buy satellite communications firm Iridium in $8 billion deal
• Positive Sentiment: Analysts and market commentators say the deal improves Rocket Lab’s financial profile by adding higher-margin recurring revenue, making the company look more like a “space powerhouse” and a closer competitor to SpaceX. Rocket Lab’s (RKLB) Iridium Acquisition Adds the Cash Flow It Was Missing
• Positive Sentiment: Several analysts raised price targets or turned more bullish after the announcement, citing Rocket Lab’s “formidable” competitive position and its evolution into a vertically integrated space platform. Top Analyst Raises Rocket Lab Stock Price Target, Cites ‘Formidable’ Competitive Position
• Neutral Sentiment: More bullish coverage also highlighted Rocket Lab’s long-term strategy to challenge SpaceX by combining launch services with satellite communications and recurring network revenue. The Rocket Lab CEO’s Bold Bet to Challenge SpaceX’s Dominance
• Negative Sentiment: The deal is large and complex, so investors may also weigh integration risk, dilution from the stock component, and execution risk as Rocket Lab takes on a much bigger business model. Rocket Lab to buy satellite communications firm Iridium in $8 billion deal

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.