Rocket Lab (NASDAQ:RKLB) Trading Up 3.7% on Analyst Upgrade

Key Points

• Rocket Lab shares rose 3.7% after Bank of America lifted its price target from $105 to $115 and kept a buy rating. The stock traded as high as $104.16 on heavier-than-normal volume.
• Analysts across Wall Street remain broadly bullish, with multiple firms raising targets and upgrading views on Rocket Lab. The consensus rating is now Moderate Buy, with an average price target of $108.24.
• Recent insider sales included transactions by CFO Adam C. Spice and SVP Arjun Kampani, while insiders have sold 573,515 shares over the last 90 days. Institutional ownership remains high at 71.78%.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) was up 3.7% during mid-day trading on Tuesday after Bank of America raised their price target on the stock from $105.00 to $115.00. Bank of America currently has a buy rating on the stock. Rocket Lab traded as high as $104.16 and last traded at $101.65. 32,599,552 shares were traded during trading, an increase of 30% from the average session volume of 25,131,363 shares. The stock had previously closed at $98.01.

RKLB has been the topic of several other research reports. Citizens Jmp boosted their price target on shares of Rocket Lab from $95.00 to $130.00 and gave the company a "market outperform" rating in a research report on Tuesday. Cantor Fitzgerald reiterated an "overweight" rating and issued a $96.00 price objective on shares of Rocket Lab in a research note on Tuesday. Needham & Company LLC reissued a "buy" rating and set a $120.00 target price on shares of Rocket Lab in a report on Tuesday. TD Cowen increased their target price on Rocket Lab from $90.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Clear Str raised Rocket Lab to a "strong-buy" rating in a report on Wednesday, March 18th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Rocket Lab presently has an average rating of "Moderate Buy" and an average price target of $108.24.

Insider Activity

In related news, CFO Adam C. Spice sold 62,744 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $142.57, for a total transaction of $8,945,412.08. Following the completion of the transaction, the chief financial officer owned 983,049 shares of the company's stock, valued at approximately $140,153,295.93. The trade was a 6.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Arjun Kampani sold 88,000 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $107.98, for a total transaction of $9,502,240.00. Following the sale, the senior vice president directly owned 264,705 shares in the company, valued at $28,582,845.90. This trade represents a 24.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 573,515 shares of company stock valued at $76,412,122 over the last ninety days. 8.40% of the stock is owned by insiders.

Key Stories Impacting Rocket Lab

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

• Positive Sentiment: The Iridium acquisition could add stable, higher-margin cash flow and reduce Rocket Lab’s reliance on lumpy launch revenue. Rocket Lab to buy satellite communications firm Iridium in $8 billion deal
• Positive Sentiment: Analysts responded favorably, with multiple firms raising price targets and calling the combined company a stronger competitive threat to SpaceX. Rocket Lab Stock Rises As Iridium Deal Sparks Positive Analyst Response
• Positive Sentiment: Brokerage updates were constructive, including higher targets from Bank of America and Citizens JMP, reinforcing bullish sentiment around the transaction. Top Analyst Raises Rocket Lab Stock Price Target, Cites ‘Formidable’ Competitive Position
• Neutral Sentiment: The broader space sector is rallying, which is helping Rocket Lab benefit from a strong industry-wide risk-on move. Planet Labs Spikes 8%, Rocket Lab Gains 5%, SpaceX Climbs 4% as the Space Rally Rolls On

Institutional Investors Weigh In On Rocket Lab

Several large investors have recently added to or reduced their stakes in RKLB. AQR Capital Management LLC increased its stake in Rocket Lab by 114.0% in the 1st quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer's stock worth $3,117,000 after acquiring an additional 92,849 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of Rocket Lab by 1,812.1% during the 1st quarter. NewEdge Advisors LLC now owns 36,807 shares of the rocket manufacturer's stock valued at $658,000 after acquiring an additional 34,882 shares during the last quarter. Jones Financial Companies Lllp boosted its position in shares of Rocket Lab by 53.8% during the 1st quarter. Jones Financial Companies Lllp now owns 15,745 shares of the rocket manufacturer's stock valued at $282,000 after acquiring an additional 5,507 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Rocket Lab by 13.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 773,548 shares of the rocket manufacturer's stock worth $13,831,000 after purchasing an additional 90,758 shares in the last quarter. Finally, Focus Partners Wealth grew its holdings in shares of Rocket Lab by 1.0% during the first quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer's stock worth $1,206,000 after purchasing an additional 681 shares in the last quarter. Institutional investors own 71.78% of the company's stock.

Rocket Lab Stock Performance

The company's 50-day moving average is $107.78 and its two-hundred day moving average is $85.40. The company has a market capitalization of $58.83 billion, a P/E ratio of -317.66 and a beta of 2.48. The company has a quick ratio of 4.02, a current ratio of 4.47 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The business had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. During the same period in the previous year, the business posted ($0.12) earnings per share. Rocket Lab's revenue for the quarter was up 63.4% on a year-over-year basis. Equities analysts anticipate that Rocket Lab Corporation will post -0.29 earnings per share for the current fiscal 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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