Rocket Lab (NASDAQ:RKLB) Shares Up 6.8% - Should You Buy?

Key Points

• Rocket Lab shares rose 6.8% on Thursday, extending strong recent momentum and reaching a new all-time high. Trading volume was also above average, signaling heavy investor interest.
• The rally is being driven by a strong Q1 earnings report, including revenue growth of about 63.5% year over year and results that beat expectations. Investors are also reacting to analyst upgrades and improving confidence in the company’s growth outlook.
• Rocket Lab’s record backlog and new multi-launch deal are boosting future revenue visibility, while its move into hypersonics and defense work is broadening the growth story beyond satellite launches. Analysts currently rate the stock a Moderate Buy on average, with an average target price of $97.19.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares shot up 6.8% on Thursday . The company traded as high as $133.18 and last traded at $132.55. 24,910,460 shares changed hands during trading, an increase of 6% from the average session volume of 23,548,742 shares. The stock had previously closed at $124.15.

Key Stories Impacting Rocket Lab

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

• Positive Sentiment: Traders are still bidding up Rocket Lab after its strong Q1 report, which showed revenue growth of 63.5% year over year and better-than-expected results. Rocket Lab Stock Is Climbing Today: What's Happening?
• Positive Sentiment: Investor momentum is being reinforced by analyst upgrades and rising confidence in Rocket Lab’s growth trajectory after earnings. Why Rocket Lab (RKLB) Stock Is Trading Up Today
• Positive Sentiment: Rocket Lab’s record backlog and new multi-launch deal are helping fuel the breakout, suggesting stronger future revenue visibility. Rocket Lab Stock Jumps After $2.2B Backlog and New Multi-Launch Deal
• Positive Sentiment: The company’s expansion into hypersonics and defense-related work is also supporting the bull case, as investors see a broader market beyond satellite launches. Rocket Lab Buys a Rival for $40 Million Cash

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RKLB. 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 note on Monday, April 20th. Clear Str raised shares of Rocket Lab to a "strong-buy" rating in a research note on Wednesday, March 18th. Citigroup reissued an "outperform" rating on shares of Rocket Lab in a research note on Friday, May 8th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rocket Lab in a research note on Tuesday, April 21st. Finally, The Goldman Sachs Group raised their price objective on shares of Rocket Lab from $47.00 to $69.00 and gave the stock a "neutral" rating in a research note on Tuesday, January 20th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $97.19.

Rocket Lab Stock Performance

The stock's 50-day moving average is $76.51 and its 200-day moving average is $69.96. The stock has a market cap of $75.48 billion, a price-to-earnings ratio of -414.22 and a beta of 2.30. 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 announced its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The firm had revenue of $200.35 million for the quarter, compared to analyst estimates of $189.65 million. During the same quarter last year, the business earned ($0.12) earnings per share. Rocket Lab's revenue was up 63.4% compared to the same quarter last year. Analysts anticipate that Rocket Lab Corporation will post -0.22 EPS for the current fiscal year.

Insider Activity

In related news, CFO Adam C. Spice sold 62,744 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $69.59, for a total transaction of $4,366,354.96. Following the sale, the chief financial officer owned 1,296,824 shares in the company, valued at approximately $90,245,982.16. This trade represents a 4.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Merline Saintil sold 18,126 shares of the firm's stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $75.04, for a total transaction of $1,360,175.04. Following the sale, the director owned 261,903 shares in the company, valued at approximately $19,653,201.12. This trade represents a 6.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 233,449 shares of company stock valued at $16,487,233 in the last 90 days. Insiders own 8.40% of the company's stock.

Institutional Trading of Rocket Lab

Institutional investors have recently made changes to their positions in the stock. Arizona State Retirement System grew its stake in shares of Rocket Lab by 13.6% during 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. Firsthand Capital Management Inc. grew its stake in shares of Rocket Lab by 40.0% during 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 grew its stake in shares of Rocket Lab by 67.7% during 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. Vanguard Group Inc. grew its stake in shares of Rocket Lab by 13.4% during 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. Finally, State of New Jersey Common Pension Fund D grew its stake in shares of Rocket Lab by 14.4% during the 3rd quarter. State of New Jersey Common Pension Fund D now owns 153,106 shares of the rocket manufacturer's stock valued at $7,335,000 after buying an additional 19,304 shares during the period. 71.78% of the stock is owned by hedge funds and other institutional investors.

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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