Rocket Lab (NASDAQ:RKLB) Trading 8.2% Higher - Still a Buy?

Key Points

• Rocket Lab shares rose 8.2% on heavy volume, trading as high as $139.76 after closing at $125.45 the prior day. The move came amid renewed interest in space stocks and ahead of SpaceX-related sector optimism.
• The company won a $90 million U.S. Space Force contract to build GEO satellites carrying space domain awareness payloads, expanding its business into geostationary orbit and adding a new revenue stream.
• Rocket Lab also reported strong operational momentum, including its 9th Electron launch for Synspective and quarterly revenue of $200.35 million, which beat estimates and grew 63.4% year over year. However, investors remain cautious about a potential $3 billion share-sale program that could dilute shareholders.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s stock price traded up 8.2% during trading on Friday . The stock traded as high as $139.76 and last traded at $135.76. 32,708,704 shares traded hands during trading, an increase of 37% from the average session volume of 23,873,797 shares. The stock had previously closed at $125.45.

Key Headlines Impacting Rocket Lab

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Rocket Lab won a $90 million Space Force contract, which expands its satellite business into geostationary orbit and adds a meaningful new source of revenue. Article Title
• Positive Sentiment: The company completed its 9th Electron launch for Synspective, underscoring strong execution and a durable commercial launch partnership. Article Title
• Neutral Sentiment: Broader space-stock momentum and renewed interest ahead of SpaceX’s IPO are also lifting sentiment across the sector, including RKLB. Article Title
• Negative Sentiment: Some investors remain wary after Rocket Lab’s recent announcement of a potential $3 billion share-sale program, which raised dilution concerns earlier in the week. Article Title

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. BTIG Research reaffirmed a "hold" rating on shares of Rocket Lab in a research note on Tuesday, May 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rocket Lab in a research note on Tuesday, April 21st. Needham & Company LLC boosted their price target on shares of Rocket Lab from $95.00 to $120.00 and gave the stock a "buy" rating in a research note on Monday, May 11th. Wall Street Zen raised shares of Rocket Lab from a "sell" rating to a "hold" rating in a research note on Sunday, February 8th. Finally, TD Cowen boosted their price target on shares of Rocket Lab from $90.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $97.19.

Rocket Lab Stock Up 8.2%

The company has a market cap of $78.57 billion, a PE ratio of -424.25 and a beta of 2.30. The stock's 50 day moving average price is $83.57 and its 200-day moving average price is $72.72. The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, meeting analysts' consensus estimates of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The company had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. During the same period in the prior year, the business posted ($0.12) EPS. The firm's revenue was up 63.4% compared to the same quarter last year. On average, analysts predict that Rocket Lab Corporation will post -0.24 earnings per share for the current year.

Insider Activity

In other news, insider Frank Klein sold 36,768 shares of Rocket Lab stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $71.95, for a total transaction of $2,645,457.60. Following the sale, the insider owned 1,088,237 shares of the company's stock, valued at approximately $78,298,652.15. The trade was a 3.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Merline Saintil sold 18,126 shares of the firm's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $75.04, for a total value of $1,360,175.04. Following the completion of the transaction, the director owned 261,903 shares of the company's stock, valued at approximately $19,653,201.12. The trade was a 6.47% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 333,449 shares of company stock worth $28,295,233. 8.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Sara Bay Financial increased its stake in shares of Rocket Lab by 0.7% in the 4th quarter. Sara Bay Financial now owns 15,905 shares of the rocket manufacturer's stock worth $1,121,000 after acquiring an additional 117 shares in the last quarter. ORG Partners LLC increased its stake in shares of Rocket Lab by 9.1% in the 4th quarter. ORG Partners LLC now owns 1,458 shares of the rocket manufacturer's stock worth $102,000 after acquiring an additional 121 shares in the last quarter. Bartlett & CO. Wealth Management LLC increased its stake in shares of Rocket Lab by 7.1% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer's stock worth $120,000 after acquiring an additional 124 shares in the last quarter. Sovereign Financial Group Inc. increased its stake in shares of Rocket Lab by 3.9% in the 1st quarter. Sovereign Financial Group Inc. now owns 3,320 shares of the rocket manufacturer's stock worth $213,000 after acquiring an additional 125 shares in the last quarter. Finally, Traynor Capital Management Inc. increased its stake in shares of Rocket Lab by 1.9% in the 4th quarter. Traynor Capital Management Inc. now owns 7,191 shares of the rocket manufacturer's stock worth $502,000 after acquiring an additional 133 shares in the last quarter. 71.78% of the stock is currently owned by institutional investors.

Rocket Lab Company Profile

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company's primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company's propulsion capabilities.

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