Rocket Lab (NASDAQ:RKLB) Shares Up 1.6% - Here's Why

Key Points

• Rocket Lab's stock increased by 1.6% to $47.01, despite a 23% decline in trading volume compared to the average.
• Analysts from firms like Citigroup and KeyCorp have issued optimistic ratings, raising price targets for Rocket Lab's shares, with a new consensus target price of $42.27.
• Insider selling has been significant, with CFO Adam C. Spice selling over 874,000 shares, indicating a reduction in ownership of nearly 30%.

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shot up 1.6% on Monday . The stock traded as high as $48.10 and last traded at $47.01. 15,769,282 shares were traded during mid-day trading, a decline of 23% from the average session volume of 20,437,551 shares. The stock had previously closed at $46.26.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on RKLB. Citigroup restated a "buy" rating and issued a $50.00 price objective (up previously from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. KeyCorp boosted their price objective on shares of Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. The Goldman Sachs Group began coverage on shares of Rocket Lab in a research note on Monday, June 30th. They issued a "neutral" rating and a $27.00 target price on the stock. Stifel Nicolaus lifted their price target on shares of Rocket Lab from $34.00 to $55.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Finally, Bank of America lifted their price target on shares of Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Rocket Lab currently has an average rating of "Moderate Buy" and a consensus target price of $42.27.

Rocket Lab Stock Up 1.6%

The stock's fifty day moving average price is $46.36 and its 200-day moving average price is $33.20. The company has a market capitalization of $22.75 billion, a price-to-earnings ratio of -104.47 and a beta of 2.17. 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 announced its quarterly earnings data on Thursday, August 7th. The rocket manufacturer reported ($0.13) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.06). The firm had revenue of $144.50 million during the quarter, compared to the consensus estimate of $135.42 million. Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The business's revenue was up 35.9% on a year-over-year basis. During the same period last year, the business earned ($0.08) EPS. Rocket Lab has set its Q3 2025 guidance at EPS. On average, sell-side analysts predict that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other Rocket Lab news, CFO Adam C. Spice sold 874,588 shares of the company's stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $48.01, for a total value of $41,988,969.88. Following the sale, the chief financial officer owned 2,057,889 shares in the company, valued at $98,799,250.89. This represents a 29.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Frank Klein sold 45,535 shares of the company's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $48.97, for a total value of $2,229,848.95. Following the completion of the sale, the insider owned 1,320,291 shares in the company, valued at $64,654,650.27. This represents a 3.33% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,406,361 shares of company stock valued at $267,483,973. 11.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Rocket Lab

Several large investors have recently modified their holdings of RKLB. EverSource Wealth Advisors LLC lifted its stake in shares of Rocket Lab by 109.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 416 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in Rocket Lab during the second quarter worth approximately $36,000. Kilter Group LLC bought a new stake in shares of Rocket Lab during the second quarter worth approximately $37,000. ORG Partners LLC boosted its holdings in shares of Rocket Lab by 491.9% during the second quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock worth $38,000 after acquiring an additional 910 shares during the period. Finally, Golden State Wealth Management LLC grew its position in shares of Rocket Lab by 3,250.0% in the second 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 last quarter. 71.78% of the stock is owned by institutional investors.

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.

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