Rocket Lab (NASDAQ:RKLB) Trading 1.1% Higher - Should You Buy?

Key Points

• Rocket Lab shares increased by 1.1%, with the stock trading between $43.28 and $43.58, despite a significant drop in volume compared to average trading levels.
• Analysts have improved their outlook for Rocket Lab, with several firms setting target prices between $50.00 and $55.00, leading to a consensus rating of "Moderate Buy."
• In its recent earnings report, Rocket Lab posted a revenue of $144.50 million, exceeding analyst expectations, but also reported a loss per share of ($0.13).

Shares of Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) traded up 1.1% during mid-day trading on Friday . The stock traded as high as $43.58 and last traded at $43.28. 4,325,715 shares traded hands during trading, a decline of 78% from the average session volume of 19,885,068 shares. The stock had previously closed at $42.81.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Needham & Company LLC restated a "buy" rating and set a $55.00 price objective (up from $45.00) on shares of Rocket Lab in a research report on Friday, August 8th. Craig Hallum started 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. 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. Bank of America lifted their price target on Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Finally, Citigroup reissued a "buy" rating and set a $50.00 target price (up previously from $33.00) on shares of Rocket Lab in a report on Monday, July 14th. Five research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $42.27.

Rocket Lab Stock Up 2.9%

The firm's 50-day moving average price is $38.90 and its 200 day moving average price is $28.21. The company has a market capitalization of $20.34 billion, a price-to-earnings ratio of -98.16 and a beta of 2.17. The company has a current ratio of 2.67, a quick ratio of 1.72 and a debt-to-equity ratio of 0.60.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) 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 business had revenue of $144.50 million for the quarter, compared to analyst estimates of $135.42 million. During the same period last year, the firm posted ($0.08) EPS. Rocket Lab's quarterly revenue was up 35.9% on a year-over-year basis. On average, sell-side analysts forecast that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Frank Klein sold 44,885 shares of the company's stock in a transaction that occurred on 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 completion of the transaction, the insider directly owned 1,370,190 shares in the company, valued at $36,529,265.40. This represents a 3.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Matthew Ocko sold 820,000 shares of the company's stock in a transaction on 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 owned 1,083,053 shares of the company's stock, valued at $28,170,208.53. This trade represents a 43.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,130,995 shares of company stock worth $29,686,039 in the last ninety days. Insiders own 11.90% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RKLB. EverSource Wealth Advisors LLC raised its stake in shares of Rocket Lab by 109.5% during the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after acquiring an additional 416 shares during the last quarter. Atlantic Union Bankshares Corp bought a new position in Rocket Lab during the 2nd quarter worth $36,000. Kilter Group LLC bought a new position in Rocket Lab during the 2nd quarter worth $37,000. ORG Partners LLC raised its position in Rocket Lab by 491.9% during the 2nd quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock worth $38,000 after purchasing an additional 910 shares during the last quarter. Finally, Golden State Wealth Management LLC raised its position in Rocket Lab by 3,250.0% during the 2nd quarter. Golden State Wealth Management LLC now owns 1,340 shares of the rocket manufacturer's stock worth $48,000 after purchasing an additional 1,300 shares during the last quarter. Institutional investors own 71.78% of the company's stock.

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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