Rocket Lab (NASDAQ:RKLB) Stock Price Up 1.7% - Should You Buy?

Key Points

• Rocket Lab's stock increased by 1.7% during trading, reaching a high of $68.54 before closing at $66.42, with a significant trading volume of approximately 25.7 million shares.
• Recent reports from major financial firms have upgraded Rocket Lab's price targets, with Bank of America setting a target of $50.00 and several other firms issuing ratings between "Buy" and "Hold."
• Despite a negative earnings report with an EPS of ($0.13), Rocket Lab reported a revenue of $144.50 million, exceeding analyst expectations, and showing a 35.9% year-over-year increase.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares were up 1.7% during trading on Thursday . The stock traded as high as $68.54 and last traded at $66.42. Approximately 25,740,880 shares changed hands during trading, an increase of 24% from the average daily volume of 20,826,076 shares. The stock had previously closed at $65.31.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on RKLB. Bank of America lifted their price objective 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. KeyCorp lifted their price target on Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Craig Hallum assumed coverage on Rocket Lab in a report on Monday, July 28th. They set a "hold" rating and a $51.00 price target for the company. The Goldman Sachs Group assumed coverage on Rocket Lab in a research note on Monday, June 30th. They set a "neutral" rating and a $27.00 target price for the company. Finally, Citigroup restated a "buy" rating and set a $50.00 target price (up previously from $33.00) on shares of Rocket Lab in a research note on Monday, July 14th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $42.27.

Rocket Lab Stock Performance

The firm's 50-day moving average is $48.02 and its 200 day moving average is $35.30. The stock has a market cap of $32.14 billion, a PE ratio of -147.60 and a beta of 2.14. The company has a debt-to-equity ratio of 0.60, a quick ratio of 2.33 and a current ratio of 2.67.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The rocket manufacturer reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.06). Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The company had revenue of $144.50 million for the quarter, compared to analysts' expectations of $135.42 million. During the same period in the prior year, the company earned ($0.08) earnings per share. The firm's revenue was up 35.9% on a year-over-year basis. Rocket Lab has set its Q3 2025 guidance at EPS. As a group, research analysts anticipate that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insider Buying and Selling at Rocket Lab

In related news, CFO Adam C. Spice sold 874,588 shares of the firm'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 completion of the transaction, the chief financial officer directly owned 2,057,889 shares of the company's stock, valued at $98,799,250.89. This trade represents a 29.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Frank Klein sold 45,535 shares of the firm'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 transaction, the insider directly owned 1,320,291 shares of the company's stock, 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. In the last quarter, insiders sold 5,406,361 shares of company stock worth $267,483,973. 11.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of RKLB. AdvisorNet Financial Inc increased its position in Rocket Lab by 2,047.7% during the 3rd quarter. AdvisorNet Financial Inc now owns 5,133 shares of the rocket manufacturer's stock worth $246,000 after purchasing an additional 4,894 shares in the last quarter. Financial Enhancement Group LLC purchased a new stake in shares of Rocket Lab during the third quarter worth about $1,228,000. Toth Financial Advisory Corp purchased a new stake in shares of Rocket Lab during the third quarter worth about $395,000. Voya Investment Management LLC grew its holdings in shares of Rocket Lab by 22.7% during the third quarter. Voya Investment Management LLC now owns 1,581,831 shares of the rocket manufacturer's stock worth $75,786,000 after buying an additional 292,455 shares in the last quarter. Finally, Teamwork Financial Advisors LLC grew its holdings in shares of Rocket Lab by 139.8% during the third quarter. Teamwork Financial Advisors LLC now owns 25,390 shares of the rocket manufacturer's stock worth $1,216,000 after buying an additional 14,800 shares in the last quarter. 71.78% of the stock is owned by hedge funds and other 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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