Rocket Lab (NASDAQ:RKLB) Stock Price Up 10.2% - Time to Buy?

Key Points

• Rocket Lab's stock jumped 10.2% to $78.59 on Tuesday on heavy trading (28.4M shares, ~33% above average), giving the company a market cap of $41.98 billion and a negative trailing P/E of -212.40.
• Analyst coverage is mixed but skewed positive: the consensus is a Moderate Buy with an average price target of $75.92, while Bank of America raised its target to $120 and ratings across firms include 1 Strong Buy, 7 Buy, 7 Hold and 1 Sell.
• Insiders have sold heavily recently—about 1,847,428 shares worth $138,980,483 over the last three months—though insiders still own 11.9% and institutions/hedge funds own ~71.8%; the company reports strong liquidity (quick ratio 3.61, current ratio 4.08) and low leverage (debt/equity 0.10).

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s share price traded up 10.2% on Tuesday . The company traded as high as $78.67 and last traded at $78.59. 28,433,815 shares traded hands during trading, an increase of 33% from the average session volume of 21,307,887 shares. The stock had previously closed at $71.31.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on RKLB. Zacks Research lowered Rocket Lab from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rocket Lab in a report on Thursday, January 22nd. TD Cowen reiterated a "buy" rating on shares of Rocket Lab in a research report on Thursday, January 22nd. Wall Street Zen raised shares of Rocket Lab from a "sell" rating to a "hold" rating in a research note on Sunday, February 8th. Finally, Bank of America upped their price objective on shares of Rocket Lab from $60.00 to $120.00 and gave the stock a "buy" rating in a research report on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Rocket Lab presently has a consensus rating of "Moderate Buy" and a consensus price target of $75.92.

Rocket Lab Trading Up 10.2%

The company has a quick ratio of 3.61, a current ratio of 4.08 and a debt-to-equity ratio of 0.10. The business's fifty day moving average is $77.33 and its 200 day moving average is $63.25. The stock has a market cap of $41.98 billion, a PE ratio of -212.40 and a beta of 2.20.

Insider Buying and Selling at Rocket Lab

In related news, SVP Arjun Kampani sold 23,711 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $71.95, for a total value of $1,706,006.45. Following the sale, the senior vice president owned 397,988 shares in the company, valued at $28,635,236.60. This represents a 5.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Frank Klein sold 36,768 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $71.95, for a total value of $2,645,457.60. Following the completion of the transaction, the insider directly owned 1,088,237 shares of the company's stock, valued at $78,298,652.15. The trade was a 3.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,847,428 shares of company stock worth $138,980,483. Corporate insiders own 11.90% of the company's stock.

Hedge Funds Weigh In On Rocket Lab

Hedge funds have recently added to or reduced their stakes in the business. Aventura Private Wealth LLC purchased a new stake in shares of Rocket Lab in the fourth quarter valued at about $25,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Rocket Lab during the 4th quarter worth approximately $27,000. Zions Bancorporation National Association UT purchased a new position in shares of Rocket Lab during the 4th quarter worth approximately $28,000. Gordian Capital Singapore Pte Ltd acquired a new position in shares of Rocket Lab during the 4th quarter worth approximately $29,000. Finally, Reflection Asset Management purchased a new stake in Rocket Lab in the 4th quarter valued at approximately $30,000. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.