Rocket Lab (NASDAQ:RKLB) Receives "Buy" Rating from Needham & Company LLC

Key Points

• Needham & Company reiterated a Buy rating on Rocket Lab and kept a $120 price target, implying about 22.5% upside from the prior close.
• Rocket Lab’s stock was up 15.9% in the session highlighted by the article, and the company continues to draw generally bullish analyst sentiment with a consensus Moderate Buy rating and $105.82 average target.
• The company’s latest quarterly results showed revenue of $200.35 million, beating expectations and rising 63.4% year over year, while earnings per share matched estimates at -$0.07.

Rocket Lab (NASDAQ:RKLB - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Needham & Company LLC in a report issued on Tuesday,Benzinga reports. They presently have a $120.00 price objective on the rocket manufacturer's stock. Needham & Company LLC's price target points to a potential upside of 22.51% from the company's previous close.

Other equities analysts have also issued research reports about the company. KGI Securities started coverage on Rocket Lab in a research note on Thursday, June 11th. They issued a "neutral" rating and a $105.00 target price on the stock. Deutsche Bank Aktiengesellschaft upped their price target on Rocket Lab from $73.00 to $120.00 and gave the company a "buy" rating in a research note on Tuesday, May 12th. Citizens Jmp increased their price target on shares of Rocket Lab from $85.00 to $95.00 and gave the company a "market outperform" rating in a research report on Friday, May 8th. BTIG Research reissued a "hold" rating on shares of Rocket Lab in a research note on Tuesday, May 12th. Finally, TD Cowen boosted their price objective on shares of Rocket Lab from $90.00 to $120.00 and gave the company a "buy" rating in a report on Friday, May 8th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Rocket Lab presently has a consensus rating of "Moderate Buy" and a consensus target price of $105.82.

Rocket Lab Stock Up 15.9%

Shares of NASDAQ:RKLB opened at $97.95 on Tuesday. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.47 and a quick ratio of 4.02. The stock has a market cap of $56.69 billion, a price-to-earnings ratio of -306.09 and a beta of 2.48. The company has a 50 day moving average of $107.78 and a 200-day moving average of $85.40. Rocket Lab has a one year low of $33.73 and a one year high of $151.00.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.07). The firm had revenue of $200.35 million for the quarter, compared to analysts' expectations 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 for the quarter was up 63.4% on a year-over-year basis. During the same period last year, the firm earned ($0.12) earnings per share. On average, sell-side analysts forecast that Rocket Lab will post -0.29 earnings per share for the current year.

Insider Transactions at Rocket Lab

In other news, CFO Adam C. Spice sold 62,744 shares of the business'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 $140,153,295.93. The trade was a 6.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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, SVP Arjun Kampani sold 88,000 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $107.98, for a total transaction of $9,502,240.00. Following the transaction, the senior vice president owned 264,705 shares of the company's stock, valued at $28,582,845.90. The trade was a 24.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 573,515 shares of company stock valued at $76,412,122 over the last three months. 8.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Rocket Lab

A number of hedge funds and other institutional investors have recently modified their holdings of RKLB. Baillie Gifford & Co. raised its stake in shares of Rocket Lab by 47.2% during the 4th quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer's stock worth $1,245,317,000 after purchasing an additional 5,725,536 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of Rocket Lab by 13.4% in the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock valued at $3,308,033,000 after buying an additional 5,610,469 shares in the last quarter. Norges Bank bought a new position in shares of Rocket Lab in the fourth quarter valued at $341,036,000. Alliancebernstein L.P. increased its holdings in Rocket Lab by 818.8% during the third quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer's stock worth $104,929,000 after buying an additional 1,951,755 shares during the last quarter. Finally, Capital World Investors increased its holdings in Rocket Lab by 12.0% during the fourth quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer's stock worth $1,130,172,000 after buying an additional 1,738,623 shares during the last quarter. Institutional investors and hedge funds own 71.78% of the company's stock.

Key Rocket Lab News

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

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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