Rocket Lab (NASDAQ:RKLB) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Rocket Lab (NASDAQ:RKLB) from "sell" to "hold"; the stock's consensus across analysts is a "Moderate Buy" with a $61.25 average price target (2 Strong Buy, 7 Buy, 5 Hold, 1 Sell).
• Rocket Lab beat estimates with Q results of $155.08M revenue (up 48% year‑over‑year) and EPS of ($0.03) vs. ($0.05) expected, but remains unprofitable with a ~35.6% negative net margin; shares were trading up about 8.9% near $76 and close to their 12‑month high.
• Significant insider selling has occurred recently: CEO Peter Beck sold 939,746 shares for roughly $51.4M, insiders sold about 2.73M shares (~$152M) in the past 90 days, though insiders still own 11.9% and institutions own ~71.8% of the stock.

Rocket Lab (NASDAQ:RKLB - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

Other equities analysts have also issued research reports about the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rocket Lab in a report on Wednesday, October 8th. Baird R W raised shares of Rocket Lab to a "strong-buy" rating in a report on Thursday, October 16th. Needham & Company LLC raised their target price on Rocket Lab from $63.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, December 23rd. Robert W. Baird initiated coverage on shares of Rocket Lab in a research note on Wednesday, October 15th. They set an "outperform" rating and a $83.00 price objective on the stock. Finally, Citigroup restated a "market perform" rating on shares of Rocket Lab in a report on Wednesday, November 12th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Rocket Lab currently has a consensus rating of "Moderate Buy" and a consensus price target of $61.25.

Rocket Lab Trading Up 8.9%

Shares of RKLB stock opened at $75.99 on Friday. The firm has a 50-day moving average price of $56.05 and a 200 day moving average price of $50.26. The company has a current ratio of 3.18, a quick ratio of 2.83 and a debt-to-equity ratio of 0.32. The company has a market capitalization of $40.59 billion, a price-to-earnings ratio of -199.97 and a beta of 2.16. Rocket Lab has a twelve month low of $14.71 and a twelve month high of $79.83.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.05) by $0.02. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. The firm had revenue of $155.08 million for the quarter, compared to analyst estimates of $152.45 million. During the same quarter last year, the business earned ($0.10) earnings per share. Rocket Lab's revenue was up 48.0% compared to the same quarter last year. Research analysts forecast that Rocket Lab will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rocket Lab news, SVP Arjun Kampani sold 10,554 shares of the firm's stock in a transaction on Wednesday, November 26th. The shares were sold at an average price of $42.08, for a total value of $444,112.32. Following the sale, the senior vice president directly owned 450,460 shares in the company, valued at $18,955,356.80. This trade represents a 2.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Peter Beck sold 939,746 shares of the firm's stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $54.73, for a total value of $51,432,298.58. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 2,731,985 shares of company stock valued at $152,026,345 in the last ninety days. Company insiders own 11.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Baird Financial Group Inc. raised its holdings in shares of Rocket Lab by 16.0% in the first quarter. Baird Financial Group Inc. now owns 217,765 shares of the rocket manufacturer's stock valued at $3,894,000 after buying an additional 30,036 shares during the last quarter. Royal Bank of Canada grew its holdings in Rocket Lab by 6.4% during the first quarter. Royal Bank of Canada now owns 2,128,536 shares of the rocket manufacturer's stock valued at $38,057,000 after purchasing an additional 128,907 shares during the period. AQR Capital Management LLC grew its stake in Rocket Lab by 114.0% in the first quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer's stock valued at $3,117,000 after acquiring an additional 92,849 shares during the period. Banque Transatlantique SA bought a new stake in Rocket Lab during the 1st quarter worth approximately $68,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Rocket Lab by 6.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 210,238 shares of the rocket manufacturer's stock valued at $3,759,000 after acquiring an additional 12,243 shares in the last quarter. Institutional investors own 71.78% of the company's stock.

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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