Rocket Lab (NASDAQ:RKLB) Hits New 52-Week High - Time to Buy?

Key Points

• Rocket Lab's stock reached a new 52-week high at $73.54 during mid-day trading, closing at $72.90 with a notable trading volume of 7,908,208 shares.
• Analysts have a consensus rating of "Moderate Buy" on Rocket Lab with target prices ranging from $27.00 to $54.00, indicating expected growth despite a challenging earnings report.
• Recent insider trading included significant sales by both the Director and CEO, who sold millions worth of shares, representing notable decreases in their ownership stakes.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $73.54 and last traded at $72.90, with a volume of 7908208 shares traded. The stock had previously closed at $68.03.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Cantor Fitzgerald raised their target price on shares of Rocket Lab from $35.00 to $54.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. Bank of America raised their target price on shares of Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. Citigroup reiterated a "buy" rating and issued a $50.00 price objective (up previously from $33.00) on shares of Rocket Lab in a research note on Monday, July 14th. The Goldman Sachs Group started coverage on shares of Rocket Lab in a report on Monday, June 30th. They issued a "neutral" rating and a $27.00 target price on the stock. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rocket Lab in a report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $46.64.

Rocket Lab Stock Performance

The company has a market cap of $33.01 billion, a P/E ratio of -151.83 and a beta of 2.14. The company's 50-day moving average is $49.29 and its two-hundred day moving average is $36.38. The company has a quick ratio of 2.33, a current ratio of 2.67 and a debt-to-equity ratio of 0.60.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The rocket manufacturer reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.06). Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The business had revenue of $144.50 million for the quarter, compared to analysts' expectations of $135.42 million. During the same period last year, the company earned ($0.08) earnings per share. Rocket Lab's revenue for the quarter was up 35.9% compared to the same quarter last year. Rocket Lab has set its Q3 2025 guidance at EPS. Equities analysts predict that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insider Buying and Selling at Rocket Lab

In other Rocket Lab news, Director Matthew Ocko sold 1,873,097 shares of the stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $48.20, for a total transaction of $90,283,275.40. Following the transaction, the director directly owned 541,526 shares in the company, valued at $26,101,553.20. This trade represents a 77.57% 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, CEO Peter Beck sold 1,436,442 shares of Rocket Lab stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $48.75, for a total transaction of $70,026,547.50. Following the completion of the sale, the chief executive officer owned 2,500,000 shares in the company, valued at approximately $121,875,000. This trade represents a 36.49% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 5,406,361 shares of company stock valued at $267,483,973. 11.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

Several large investors have recently modified their holdings of the stock. Truist Financial Corp grew its stake in shares of Rocket Lab by 1.9% during the 2nd quarter. Truist Financial Corp now owns 12,352 shares of the rocket manufacturer's stock valued at $442,000 after acquiring an additional 234 shares during the period. Parvin Asset Management LLC grew its position in shares of Rocket Lab by 7.2% during the 2nd quarter. Parvin Asset Management LLC now owns 3,725 shares of the rocket manufacturer's stock worth $133,000 after buying an additional 250 shares in the last quarter. GAMMA Investing LLC boosted its position in Rocket Lab by 36.4% during the second quarter. GAMMA Investing LLC now owns 1,518 shares of the rocket manufacturer's stock valued at $54,000 after purchasing an additional 405 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in Rocket Lab by 109.5% during the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after purchasing an additional 416 shares in the last quarter. Finally, Allworth Financial LP raised its stake in Rocket Lab by 4.0% in the first quarter. Allworth Financial LP now owns 11,888 shares of the rocket manufacturer's stock valued at $213,000 after buying an additional 458 shares during the last quarter. Hedge funds and other institutional investors own 71.78% of the company's stock.

About Rocket Lab

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.

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