Rocket Lab (NASDAQ:RKLB) Sets New 12-Month High - Should You Buy?

Key Points

• Rocket Lab stock hit a new 52-week high, trading as high as $151.00 and closing near that level on heavy volume, extending a strong recent rally.
• The move is being supported by several positive company catalysts, including a key milestone for the SDA Tracking Layer Tranche 3 missile-defense program and the completion of its acquisition of Motiv Space Systems.
• Wall Street sentiment is generally constructive, with multiple analysts raising price targets and the consensus rating standing at Moderate Buy, though some profit-taking by insiders has also been reported.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $151.00 and last traded at $150.23, with a volume of 29029586 shares traded. The stock had previously closed at $143.20.

Trending Headlines about Rocket Lab

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

• Positive Sentiment: Rocket Lab passed a key System Requirements Review for the Space Development Agency’s Tracking Layer Tranche 3 program, reinforcing its role in missile-defense and national-security space systems. Article: Rocket Lab Achieves Milestone for Missile Defense Constellation, Passes System Requirements Review for SDA Tracking Layer Tranche 3
• Positive Sentiment: The company completed its acquisition of Motiv Space Systems, expanding its in-house robotics and spacecraft components portfolio and supporting its vertical-integration strategy. Article: Rocket Lab Adds Mars-Proven Robotics Capabilities with Completion of Motiv Space Systems Acquisition
• Positive Sentiment: Broader enthusiasm for a possible SpaceX IPO is lifting the entire space sector, and Rocket Lab is benefiting as investors revalue publicly traded space names. Article: US space stocks rise on SpaceX IPO hype
• Positive Sentiment: Coverage highlighting Rocket Lab’s recent momentum points to the $90 million contract, the Motiv acquisition, and SpaceX-related sector optimism as the main reasons the stock has been climbing. Article: Rocket Lab Keeps Making Headlines and Highs—Here's What's Driving the Latest Move

Analysts Set New Price Targets

RKLB has been the subject of several research reports. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Rocket Lab from $73.00 to $120.00 and gave the stock a "buy" rating in a research report on Tuesday, May 12th. Stifel Nicolaus reissued a "buy" rating and set a $105.00 price objective (up from $90.00) on shares of Rocket Lab in a research report on Monday, April 20th. Craig Hallum raised shares of Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 target price for the company in a research report on Friday, May 8th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rocket Lab in a research report on Tuesday, April 21st. Finally, BTIG Research reaffirmed a "hold" rating on shares of Rocket Lab in a research report on Tuesday, May 12th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $97.19.

Rocket Lab Trading Up 4.9%

The firm has a market cap of $86.95 billion, a P/E ratio of -469.47 and a beta of 2.30. The business's 50-day moving average is $89.26 and its two-hundred day moving average is $75.12. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.47 and a quick ratio of 4.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.07). The business had revenue of $200.35 million during 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 revenue for the quarter was up 63.4% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.12) earnings per share. As a group, analysts predict that Rocket Lab Corporation will post -0.29 earnings per share for the current fiscal year.

Insider Transactions at Rocket Lab

In other Rocket Lab news, Director Merline Saintil sold 18,126 shares of the stock in a transaction on Friday, March 6th. The shares were sold at an average price of $75.04, for a total value of $1,360,175.04. Following the completion of the sale, the director owned 261,903 shares in the company, valued at $19,653,201.12. This trade represents a 6.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Peter Beck sold 18,857 shares of the stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $69.59, for a total transaction of $1,312,258.63. Following the completion of the sale, the chief executive officer owned 884,085 shares of the company's stock, valued at approximately $61,523,475.15. This represents a 2.09% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 333,449 shares of company stock valued at $28,295,233. 8.40% of the stock is owned by company insiders.

Institutional Trading of Rocket Lab

A number of large investors have recently added to or reduced their stakes in RKLB. Arizona State Retirement System increased its holdings in Rocket Lab by 13.6% in the 3rd quarter. Arizona State Retirement System now owns 127,794 shares of the rocket manufacturer's stock valued at $6,123,000 after buying an additional 15,307 shares during the period. Swedbank AB increased its holdings in Rocket Lab by 8.2% in the 4th quarter. Swedbank AB now owns 509,250 shares of the rocket manufacturer's stock valued at $35,525,000 after buying an additional 38,770 shares during the period. Firsthand Capital Management Inc. increased its holdings in Rocket Lab by 40.0% in the 3rd quarter. Firsthand Capital Management Inc. now owns 70,000 shares of the rocket manufacturer's stock valued at $3,354,000 after buying an additional 20,000 shares during the period. Swiss National Bank increased its holdings in Rocket Lab by 67.7% in the 3rd quarter. Swiss National Bank now owns 1,243,630 shares of the rocket manufacturer's stock valued at $59,582,000 after buying an additional 501,830 shares during the period. Finally, Vanguard Group Inc. increased its holdings 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 valued at $3,308,033,000 after buying an additional 5,610,469 shares during the period. Institutional investors and hedge funds own 71.78% of the company's stock.

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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