Rocket Lab (NASDAQ:RKLB) Stock Price Up 1.9% - Here's Why

Key Points

• Rocket Lab's stock price rose by 1.9% to $47.91, although trading volume decreased significantly by 28% compared to the average daily volume.
• Analysts are generally optimistic about Rocket Lab, with several brokerages raising their price targets, including Stifel Nicolaus and Needham & Company, who set targets at $55.00.
• Insider selling has been notable, with key executives selling shares valued at over $41 million, while institutional investors currently own 71.78% of the stock.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) shares rose 1.9% during mid-day trading on Tuesday . The company traded as high as $47.99 and last traded at $47.91. Approximately 14,644,380 shares traded hands during trading, a decline of 28% from the average daily volume of 20,409,461 shares. The stock had previously closed at $47.01.

Analyst Ratings Changes

Several brokerages have issued reports on RKLB. Stifel Nicolaus increased their price objective on shares of Rocket Lab from $34.00 to $55.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. Citigroup reaffirmed 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. Needham & Company LLC reaffirmed a "buy" rating and issued a $55.00 price objective on shares of Rocket Lab in a research report on Wednesday, September 3rd. The Goldman Sachs Group began coverage on shares of Rocket Lab in a research report on Monday, June 30th. They issued a "neutral" rating and a $27.00 price objective for the company. Finally, Cantor Fitzgerald increased their price objective on shares of Rocket Lab from $35.00 to $54.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $42.27.

Rocket Lab Stock Performance

The company has a market capitalization of $23.19 billion, a PE ratio of -106.47 and a beta of 2.17. 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 company has a 50 day moving average price of $46.35 and a 200 day moving average price of $33.40.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.06). The business had revenue of $144.50 million for the quarter, compared to analysts' expectations 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 quarterly revenue was up 35.9% compared to the same quarter last year. During the same quarter last year, the company posted ($0.08) earnings per share. Rocket Lab has set its Q3 2025 guidance at EPS. Equities analysts forecast that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insider Activity

In related news, SVP Arjun Kampani sold 31,185 shares of the firm's stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $48.97, for a total transaction of $1,527,129.45. Following the transaction, the senior vice president directly owned 499,045 shares in the company, valued at $24,438,233.65. This trade represents a 5.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Adam C. Spice sold 874,588 shares of the firm's stock in a transaction 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 transaction, the chief financial officer owned 2,057,889 shares in the company, valued at $98,799,250.89. This trade represents a 29.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 5,406,361 shares of company stock valued at $267,483,973 over the last three months. 11.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rocket Lab

Several large investors have recently added to or reduced their stakes in RKLB. Versant Capital Management Inc lifted its stake in Rocket Lab by 118.1% during the first quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock worth $28,000 after purchasing an additional 860 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in Rocket Lab by 109.5% in the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after buying an additional 416 shares during the last quarter. MassMutual Private Wealth & Trust FSB bought a new stake in Rocket Lab in the first quarter valued at $29,000. Farther Finance Advisors LLC lifted its stake in Rocket Lab by 181.1% in the first quarter. Farther Finance Advisors LLC now owns 1,903 shares of the rocket manufacturer's stock valued at $35,000 after buying an additional 1,226 shares during the last quarter. Finally, Spectrum Wealth Counsel LLC lifted its stake in Rocket Lab by 100.0% in the first quarter. Spectrum Wealth Counsel LLC now owns 2,000 shares of the rocket manufacturer's stock valued at $36,000 after buying an additional 1,000 shares during the last quarter. 71.78% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.