Rocket Lab (NASDAQ:RKLB) Shares Gap Up on Analyst Upgrade

Key Points

• Rocket Lab shares surged after KeyCorp raised their price target from $40.00 to $50.00, leading to an opening price of $47.54 on Friday.
• Multiple analysts have issued positive ratings for Rocket Lab, with a consensus target price of $40.55 and a majority rating of "Moderate Buy."
• Insider trading activity shows significant sales, including Director Matthew Ocko selling 820,000 shares, representing a 43% decrease in his position.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) gapped up prior to trading on Friday after KeyCorp raised their price target on the stock from $40.00 to $50.00. The stock had previously closed at $44.21, but opened at $47.54. KeyCorp currently has an overweight rating on the stock. Rocket Lab shares last traded at $44.15, with a volume of 15,229,750 shares traded.

A number of other equities research analysts have also issued reports on RKLB. Bank of America boosted their price target on shares of Rocket Lab from $30.00 to $50.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. The Goldman Sachs Group began coverage on shares of Rocket Lab in a research note on Monday, June 30th. They set a "neutral" rating and a $27.00 target price on the stock. Cantor Fitzgerald restated an "overweight" rating and issued a $35.00 target price on shares of Rocket Lab in a report on Monday, July 14th. Needham & Company LLC lifted their target price on Rocket Lab from $45.00 to $55.00 and gave the company a "buy" rating in a research note on Friday. Finally, Citigroup restated a "buy" rating and set a $50.00 price target (up from $33.00) on shares of Rocket Lab in a report on Monday, July 14th. Five analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $40.55.

Insider Buying and Selling at Rocket Lab

In other news, Director Matthew Ocko sold 820,000 shares of the firm's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $26.01, for a total transaction of $21,328,200.00. Following the transaction, the director owned 1,083,053 shares in the company, valued at approximately $28,170,208.53. This trade represents a 43.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Frank Klein sold 2,546 shares of the firm's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $30.00, for a total value of $76,380.00. Following the transaction, the insider owned 1,365,826 shares in the company, valued at approximately $40,974,780. This trade represents a 0.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,130,995 shares of company stock valued at $29,686,039 over the last three months. 11.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Rocket Lab

A number of large investors have recently added to or reduced their stakes in RKLB. Atlantic Union Bankshares Corp acquired a new stake in shares of Rocket Lab in the second quarter worth $36,000. ORG Partners LLC lifted its position in shares of Rocket Lab by 491.9% during the 2nd quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock worth $38,000 after purchasing an additional 910 shares during the last quarter. Golden State Wealth Management LLC boosted its stake in Rocket Lab by 3,250.0% during the 2nd quarter. Golden State Wealth Management LLC now owns 1,340 shares of the rocket manufacturer's stock valued at $48,000 after purchasing an additional 1,300 shares during the period. GAMMA Investing LLC grew its holdings in Rocket Lab by 36.4% in the 2nd quarter. GAMMA Investing LLC now owns 1,518 shares of the rocket manufacturer's stock valued at $54,000 after buying an additional 405 shares during the last quarter. Finally, Versant Capital Management Inc increased its position in Rocket Lab by 118.1% in the 1st quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 860 shares during the period. Institutional investors own 71.78% of the company's stock.

Rocket Lab Trading Down 0.1%

The company has a debt-to-equity ratio of 0.97, a current ratio of 2.08 and a quick ratio of 1.72. The company has a market capitalization of $20.38 billion, a price-to-earnings ratio of -110.22 and a beta of 2.17. The business has a fifty day moving average price of $37.19 and a 200 day moving average price of $27.75.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.06). Rocket Lab had a negative return on equity of 48.92% and a negative net margin of 44.32%. The company had revenue of $144.50 million for the quarter, compared to the consensus estimate of $135.42 million. During the same period last year, the firm posted ($0.08) EPS. The company's revenue was up 35.9% compared to the same quarter last year. On average, equities analysts expect that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Rocket Lab Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.