Rocket Lab (NASDAQ:RKLB) Stock Price Up 1.6% - What's Next?

Key Points

• Rocket Lab's stock price increased by 1.6% on Friday, closing at $64.56, despite a significant drop in trading volume.
• Multiple brokerages have upgraded their price targets for Rocket Lab, with Morgan Stanley raising it to $68.00 and KeyCorp to $75.00, reflecting an overall positive outlook on the stock.
• Insiders have sold over 5.4 million shares recently, indicating possible concerns about the company's stock performance despite its strong revenue growth of 35.9% year-over-year.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s share price rose 1.6% during trading on Friday . The company traded as high as $66.18 and last traded at $64.56. Approximately 11,955,646 shares traded hands during trading, a decline of 43% from the average daily volume of 20,965,197 shares. The stock had previously closed at $63.57.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on RKLB. Morgan Stanley lifted their price target on Rocket Lab from $20.00 to $68.00 and gave the company an "equal weight" rating in a research note on Monday, October 13th. Needham & Company LLC reiterated a "buy" rating and issued a $55.00 price target on shares of Rocket Lab in a research note on Wednesday, September 3rd. Bank of America lifted their price target on Rocket Lab from $30.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Baird R W upgraded Rocket Lab to a "strong-buy" rating in a research note on Thursday, October 16th. Finally, KeyCorp lifted their price target on Rocket Lab from $50.00 to $75.00 and gave the company an "overweight" rating in a research note on Friday, October 17th. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Rocket Lab currently has an average rating of "Moderate Buy" and an average target price of $51.75.

Rocket Lab Trading Up 1.6%

The business has a fifty day simple moving average of $52.34 and a 200-day simple moving average of $38.56. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.33 and a current ratio of 2.67. The firm has a market cap of $31.24 billion, a price-to-earnings ratio of -143.47 and a beta of 2.14.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued 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 48.14% and a negative net margin of 45.87%.The firm had revenue of $144.50 million during the quarter, compared to analyst estimates of $135.42 million. During the same period in the previous year, the company earned ($0.08) EPS. Rocket Lab's revenue for the quarter was up 35.9% on a year-over-year basis. Rocket Lab has set its Q3 2025 guidance at EPS. As a group, equities analysts forecast that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rocket Lab news, Director Matthew Ocko sold 1,873,097 shares of the company's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $48.20, for a total value of $90,283,275.40. Following the completion of the transaction, the director owned 541,526 shares of the company's stock, valued at $26,101,553.20. This represents a 77.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Frank Klein sold 45,535 shares of Rocket Lab stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $48.97, for a total value of $2,229,848.95. Following the transaction, the insider directly owned 1,320,291 shares in the company, valued at $64,654,650.27. The trade was a 3.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,406,361 shares of company stock worth $267,483,973. Company insiders own 11.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RKLB. Kingstone Capital Partners Texas LLC acquired a new position in Rocket Lab during the 2nd quarter worth about $192,918,000. Norges Bank acquired a new position in Rocket Lab during the 2nd quarter worth about $164,751,000. Vanguard Group Inc. lifted its holdings in Rocket Lab by 10.6% during the 1st quarter. Vanguard Group Inc. now owns 40,029,546 shares of the rocket manufacturer's stock worth $715,728,000 after buying an additional 3,833,969 shares during the period. Invesco Ltd. lifted its holdings in Rocket Lab by 67.0% during the 2nd quarter. Invesco Ltd. now owns 6,242,304 shares of the rocket manufacturer's stock worth $223,287,000 after buying an additional 2,504,054 shares during the period. Finally, Marex Group plc acquired a new position in Rocket Lab during the 2nd quarter worth about $74,359,000. 71.78% of the stock is owned by institutional investors and hedge funds.

About Rocket Lab

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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