Rocket Lab (NASDAQ:RKLB) Stock Price Up 4.9% - Should You Buy?

Key Points

• Rocket Lab's stock price rose 4.9% during mid-day trading, reaching a high of $46.48 after closing at $44.27.
• Analysts have upgraded their price targets for Rocket Lab, with Needham & Company increasing it to $55.00, reflecting positive sentiment regarding the company's future performance.
• Insiders have recently sold over 1.1 million shares of Rocket Lab stock, potentially indicating shifts in confidence among key stakeholders.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s stock price rose 4.9% during mid-day trading on Monday . The company traded as high as $46.48 and last traded at $46.44. Approximately 8,341,130 shares changed hands during trading, a decline of 58% from the average daily volume of 19,859,926 shares. The stock had previously closed at $44.27.

Analyst Upgrades and Downgrades

RKLB has been the subject of a number of research reports. Needham & Company LLC reiterated a "buy" rating and set a $55.00 target price (up previously from $45.00) on shares of Rocket Lab in a report on Friday, August 8th. KeyCorp boosted their target price on Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Bank of America upped their price target 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. Cantor Fitzgerald upped their price target on shares of Rocket Lab from $35.00 to $54.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Finally, Roth Capital upped their price target on shares of Rocket Lab from $25.00 to $35.00 and gave the stock a "buy" rating in a research report on Wednesday, May 28th. Five equities research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $42.27.

Rocket Lab Stock Performance

The stock has a market cap of $21.78 billion, a PE ratio of -100.67 and a beta of 2.17. The stock has a fifty day simple moving average of $39.21 and a two-hundred day simple moving average of $28.31. 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 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. Equities analysts anticipate that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insider Activity at Rocket Lab

In other news, insider Frank Klein sold 44,885 shares of the stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $26.66, for a total transaction of $1,196,634.10. Following the transaction, the insider owned 1,370,190 shares of the company's stock, valued at approximately $36,529,265.40. This trade represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Matthew Ocko sold 820,000 shares of the stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $26.01, for a total transaction of $21,328,200.00. Following the transaction, the director directly owned 1,083,053 shares in the company, valued at $28,170,208.53. The trade was a 43.09% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,130,995 shares of company stock worth $29,686,039. 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 the company. Truist Financial Corp lifted its stake in Rocket Lab by 1.9% during the second quarter. Truist Financial Corp now owns 12,352 shares of the rocket manufacturer's stock worth $442,000 after purchasing an additional 234 shares during the last quarter. Parvin Asset Management LLC lifted its stake in Rocket Lab by 7.2% during the second quarter. Parvin Asset Management LLC now owns 3,725 shares of the rocket manufacturer's stock worth $133,000 after purchasing an additional 250 shares during the last quarter. GAMMA Investing LLC lifted its stake in Rocket Lab by 36.4% during the second quarter. GAMMA Investing LLC now owns 1,518 shares of the rocket manufacturer's stock worth $54,000 after purchasing an additional 405 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in Rocket Lab by 109.5% during the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after purchasing an additional 416 shares during the last quarter. Finally, Allworth Financial LP lifted its stake in Rocket Lab by 4.0% during the first quarter. Allworth Financial LP now owns 11,888 shares of the rocket manufacturer's stock worth $213,000 after purchasing an additional 458 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.

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