Rocket Lab (NASDAQ:RKLB) Trading 6.1% Higher - Here's Why

Key Points

• Rocket Lab's stock price increased by 6.1% to $51.41, despite a 61% decline in trading volume compared to its average.
• Analysts have upgraded their price targets for Rocket Lab, with Bank of America raising it to $50.00 and Stifel Nicolaus to $55.00, reflecting optimism about the company's potential.
• The company's latest quarterly report showed a revenue increase of 35.9% year-over-year, but it missed earnings estimates with an EPS of ($0.13).

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s stock price traded up 6.1% during mid-day trading on Friday . The stock traded as high as $51.60 and last traded at $51.41. 7,705,078 shares were traded during mid-day trading, a decline of 61% from the average session volume of 19,998,750 shares. The stock had previously closed at $48.43.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Bank of America upped their price objective on Rocket Lab from $30.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Stifel Nicolaus upped their price objective on Rocket Lab from $34.00 to $55.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. KeyCorp upped their price objective on Rocket Lab from $40.00 to $50.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Craig Hallum began coverage on Rocket Lab in a research note on Monday, July 28th. They issued a "hold" rating and a $51.00 price objective on the stock. Finally, Roth Capital reissued a "buy" rating on shares of Rocket Lab in a report on Friday, August 29th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Rocket Lab currently has an average rating of "Moderate Buy" and a consensus price target of $42.27.

Rocket Lab Stock Up 7.6%

The firm has a market cap of $24.98 billion, a price-to-earnings ratio of -115.91 and a beta of 2.17. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.67 and a quick ratio of 2.33. The stock has a 50-day moving average of $44.89 and a 200-day moving average of $30.72.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its quarterly 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). The company had revenue of $144.50 million for the quarter, compared to analyst estimates of $135.42 million. Rocket Lab had a negative return on equity of 48.14% and a negative net margin of 45.87%.The company's quarterly revenue was up 35.9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.08) EPS. Rocket Lab has set its Q3 2025 guidance at EPS. Sell-side analysts predict that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insider Transactions at Rocket Lab

In related news, Director Merline Saintil sold 6,353 shares of the stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total transaction of $212,063.14. Following the sale, the director owned 419,569 shares in the company, valued at approximately $14,005,213.22. This trade represents a 1.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 11.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rocket Lab

Large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC boosted its holdings in shares of Rocket Lab by 109.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after purchasing an additional 416 shares in the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Rocket Lab during the 2nd quarter valued at $36,000. Kilter Group LLC acquired a new stake in shares of Rocket Lab during the 2nd quarter valued at $37,000. ORG Partners LLC boosted its holdings in shares of Rocket Lab by 491.9% during the 2nd quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock valued at $38,000 after acquiring an additional 910 shares in the last quarter. Finally, Golden State Wealth Management LLC boosted its holdings in shares of 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 valued at $48,000 after acquiring an additional 1,300 shares in the last quarter. Institutional investors and hedge funds own 71.78% of the company's stock.

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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