Rocket Lab (NASDAQ:RKLB) Trading Up 5.1% - Still a Buy?

Key Points

• Rocket Lab shares rose 5.1% on Monday, trading as high as $138.38 on volume that was 36% above average, signaling strong investor interest in the stock.
• Analysts remain mostly positive: Craig Hallum upgraded the stock to buy, and the consensus rating is Moderate Buy with an average price target of $97.19, though that is well below the latest trading price.
• The company’s latest earnings showed 63.4% year-over-year revenue growth to $200.35 million, meeting EPS estimates, while institutional investors continue to hold a large majority of the shares.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) traded up 5.1% on Monday . The company traded as high as $138.38 and last traded at $131.16. 32,123,855 shares were traded during trading, an increase of 36% from the average session volume of 23,631,506 shares. The stock had previously closed at $124.77.

Analyst Ratings Changes

RKLB has been the subject of a number of research reports. Craig Hallum upgraded Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 price objective for the company in a report on Friday, May 8th. Citigroup restated an "outperform" rating on shares of Rocket Lab in a research report on Friday, May 8th. Wall Street Zen upgraded shares of Rocket Lab from a "sell" rating to a "hold" rating in a research report on Sunday, February 8th. Wells Fargo & Company began coverage on shares of Rocket Lab in a research note on Wednesday, April 1st. They set an "equal weight" rating and a $60.00 price target on the stock. Finally, Zacks Research cut shares of Rocket Lab from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 10th. Three analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $97.19.

Rocket Lab Stock Up 5.1%

The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02. The stock has a 50 day simple moving average of $78.81 and a 200 day simple moving average of $70.85. The firm has a market capitalization of $75.91 billion, a PE ratio of -409.88 and a beta of 2.30.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.07). Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The firm had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. During the same quarter in the prior year, the firm posted ($0.12) earnings per share. The business's quarterly revenue was up 63.4% compared to the same quarter last year. As a group, sell-side analysts forecast that Rocket Lab Corporation will post -0.22 earnings per share for the current year.

Insider Buying and Selling at Rocket Lab

In other Rocket Lab news, SVP Arjun Kampani sold 23,711 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $71.95, for a total value of $1,706,006.45. Following the sale, the senior vice president owned 397,988 shares of the company's stock, valued at $28,635,236.60. This trade represents a 5.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Merline Saintil sold 18,126 shares of the business's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $75.04, for a total transaction of $1,360,175.04. Following the completion of the transaction, the director owned 261,903 shares in the company, valued at $19,653,201.12. The trade was a 6.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 333,449 shares of company stock worth $28,295,233 over the last ninety days. 8.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rocket Lab

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in shares of Rocket Lab by 13.4% during the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock valued at $3,308,033,000 after buying an additional 5,610,469 shares during the period. Baillie Gifford & Co. lifted its stake in Rocket Lab by 47.2% in the fourth quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer's stock worth $1,245,317,000 after acquiring an additional 5,725,536 shares during the period. Capital World Investors boosted its holdings in Rocket Lab by 12.0% in the fourth quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer's stock valued at $1,130,172,000 after acquiring an additional 1,738,623 shares in the last quarter. State Street Corp increased its position in Rocket Lab by 1.0% during the 4th quarter. State Street Corp now owns 12,520,223 shares of the rocket manufacturer's stock valued at $873,411,000 after purchasing an additional 120,652 shares during the period. Finally, Geode Capital Management LLC increased its position in Rocket Lab by 10.1% during the 4th quarter. Geode Capital Management LLC now owns 9,004,724 shares of the rocket manufacturer's stock valued at $626,605,000 after purchasing an additional 825,158 shares during the period. Hedge funds and other institutional investors own 71.78% of the company's stock.

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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