Rocket Lab (NASDAQ:RKLB) Trading Up 34% After Analyst Upgrade

Key Points

• Rocket Lab shares surged 34% after TD Cowen raised its price target from $90 to $120 and maintained a buy rating. The stock hit an intraday high of $105.62 on extremely heavy trading volume.
• The company reported record Q1 revenue of $200.3 million, up 63.4% year over year, and raised its Q2 revenue guidance above Wall Street expectations. That helped reinforce the view that growth is still accelerating.
• Rocket Lab also secured major new contracts, including its largest launch deal ever and a $30 million HASTE contract with Anduril, which should improve backlog and future revenue visibility. Analysts have turned more bullish overall, though the company still has yet to prove sustained profitability.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s stock price shot up 34% on Friday after TD Cowen raised their price target on the stock from $90.00 to $120.00. TD Cowen currently has a buy rating on the stock. Rocket Lab traded as high as $105.62 and last traded at $105.3090. 78,009,239 shares traded hands during trading, an increase of 239% from the average session volume of 22,992,502 shares. The stock had previously closed at $78.58.

Other analysts also recently issued reports about the stock. The Goldman Sachs Group boosted their price target on shares of Rocket Lab from $47.00 to $69.00 and gave the stock a "neutral" rating in a research report on Tuesday, January 20th. Wells Fargo & Company assumed coverage on shares of Rocket Lab in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $60.00 price target for the company. Clear Str upgraded Rocket Lab to a "strong-buy" rating in a report on Wednesday, March 18th. Cantor Fitzgerald reiterated an "overweight" rating and set a $85.00 price objective on shares of Rocket Lab in a research report on Friday, March 13th. Finally, Craig Hallum upgraded Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 price target on the stock in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Rocket Lab currently has a consensus rating of "Moderate Buy" and a consensus price target of $90.00.

Insider Buying and Selling at Rocket Lab

In other news, SVP Arjun Kampani sold 28,761 shares of the firm's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $69.59, for a total transaction of $2,001,477.99. Following the transaction, the senior vice president owned 421,699 shares in the company, valued at approximately $29,346,033.41. This trade represents a 6.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Merline Saintil sold 18,126 shares of the stock in a transaction on Friday, March 6th. The stock was sold at an average price of $75.04, for a total transaction of $1,360,175.04. Following the transaction, the director directly owned 261,903 shares in the company, valued at $19,653,201.12. The trade was a 6.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 233,449 shares of company stock worth $16,487,233 in the last ninety days. Company insiders own 8.40% of the company's stock.

Key Rocket Lab News

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

• Positive Sentiment: Rocket Lab reported record Q1 revenue of $200.3 million, topping expectations, with EPS in line with estimates and revenue up 63.4% year over year. The company also raised Q2 revenue guidance to $225 million-$240 million, above Wall Street forecasts, reinforcing the view that growth is still accelerating. Rocket Lab Announces First Quarter 2026 Financial Results
• Positive Sentiment: The company said it signed the largest launch contract in its history, a multi-mission deal covering five Neutron and three Electron launches from 2026-2029. That boosts Rocket Lab’s already large backlog and improves revenue visibility for future years. Rocket Lab’s Biggest Launch Deal Yet: Confidential Customer Books Multiple Neutron and Electron Launches
• Positive Sentiment: Rocket Lab also announced a $30 million HASTE contract with Anduril for hypersonic test flights, plus a separate U.S. Space Force interceptor program collaboration with Raytheon. These defense wins add to the company’s credibility in high-value national security work. Rocket Lab Awarded $30 Million Contract for HASTE Hypersonic Rocket Launches for Anduril
• Positive Sentiment: Analysts turned more constructive, with multiple price-target increases and upgrades, while unusually heavy call-option buying pointed to bullish trader positioning around the earnings and contract announcements.
• Neutral Sentiment: Rocket Lab said it expects to be near break-even by next year, but the business is still posting losses and remains dependent on execution to convert backlog into profits.
• Neutral Sentiment: The company also announced plans to acquire Motiv Space Systems, which should broaden its robotics capabilities, but investors will likely wait to see integration progress and whether the deal improves margins.
• Negative Sentiment: Despite the upbeat news, Rocket Lab still carries a negative net margin and has not yet proven sustained profitability, so any slowdown in launch execution or contract conversion could pressure the stock later.

Institutional Trading of Rocket Lab

Several large investors have recently modified their holdings of RKLB. Sara Bay Financial boosted its holdings in Rocket Lab by 0.7% during the fourth quarter. Sara Bay Financial now owns 15,905 shares of the rocket manufacturer's stock valued at $1,121,000 after acquiring an additional 117 shares during the period. ORG Partners LLC increased its position in 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 buying an additional 121 shares during the period. Bartlett & CO. Wealth Management LLC boosted its position in shares of Rocket Lab by 7.1% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer's stock valued at $120,000 after acquiring an additional 124 shares during the period. Sovereign Financial Group Inc. boosted its position in shares of Rocket Lab by 3.9% in the first quarter. Sovereign Financial Group Inc. now owns 3,320 shares of the rocket manufacturer's stock valued at $213,000 after acquiring an additional 125 shares during the period. Finally, Traynor Capital Management Inc. grew its stake in shares of Rocket Lab by 1.9% in the fourth 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 during the last quarter. 71.78% of the stock is owned by institutional investors.

Rocket Lab Stock Performance

The company has a debt-to-equity ratio of 0.10, a current ratio of 4.08 and a quick ratio of 3.61. The firm's 50 day moving average price is $72.88 and its 200-day moving average price is $68.50. The firm has a market cap of $59.96 billion, a price-to-earnings ratio of -284.61 and a beta of 2.30.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.07). Rocket Lab had a negative net margin of 32.94% and a negative return on equity of 19.01%. The company had revenue of $200.35 million for the quarter, compared to analyst estimates of $189.65 million. During the same period last year, the business posted ($0.12) EPS. The business's quarterly revenue was up 63.4% on a year-over-year basis. On average, analysts anticipate that Rocket Lab Corporation will post -0.22 earnings per share for the current year.

About Rocket Lab

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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