Rocket Lab (NASDAQ:RKLB) Trading Up 5.5% - Still a Buy?

Key Points

• Rocket Lab shares rose 5.5% on heavy volume, with the stock trading as high as $146 before closing at $143.20. The move reflects strong momentum in the name as investors react to recent news flow.
• The biggest catalysts were completion of the Motiv Space Systems acquisition, which expands Rocket Lab’s robotics and spacecraft capabilities, and a reported $90 million U.S. Space Force contract that supports its defense and government business.
• Sentiment is also being lifted by a broad rally in space stocks tied to renewed attention on SpaceX’s planned public listing. Analyst coverage remains generally constructive, with several buy ratings and a “Moderate Buy” consensus.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s share price traded up 5.5% during trading on Tuesday . The company traded as high as $146.00 and last traded at $143.20. 32,493,370 shares traded hands during trading, an increase of 36% from the average session volume of 23,963,693 shares. The stock had previously closed at $135.76.

Rocket Lab News Roundup

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

• Positive Sentiment: Rocket Lab completed its acquisition of Motiv Space Systems, adding robotics, motion control, and precision spacecraft mechanisms that could expand its space systems business and deepen its technical capabilities. Article Title
• Positive Sentiment: Multiple reports say RKLB is benefiting from a broader rally in space stocks tied to renewed attention on SpaceX’s planned public listing, lifting sentiment across the sector. Article Title
• Positive Sentiment: Investors are also reacting to a reported $90 million U.S. Space Force contract, which reinforces Rocket Lab’s growing defense and government revenue opportunity. Article Title
• Positive Sentiment: Brokerage and commentary coverage remains constructive, with articles highlighting Rocket Lab as a leading name in the space economy and one of the better-positioned stocks in the sector. Article Title
• Neutral Sentiment: Several articles focus on Rocket Lab’s role in the wider space-stock rally and its long-term growth narrative, but do not point to a new fundamental catalyst beyond the recent contract, acquisition, and sector momentum. Article Title

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Citigroup reaffirmed an "outperform" rating on shares of Rocket Lab in a research note on Friday, May 8th. Wells Fargo & Company assumed 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 objective on the stock. Craig Hallum upgraded shares of Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 target price on the stock in a research report on Friday, May 8th. New Street Research started coverage on shares of Rocket Lab in a research note on Wednesday, May 13th. They issued a "buy" rating and a $150.00 target price for the company. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Rocket Lab in a report on Tuesday, April 21st. Three investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $97.19.

Rocket Lab Stock Up 5.5%

The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47. The company has a market cap of $82.88 billion, a PE ratio of -447.50 and a beta of 2.30. The firm has a fifty day simple moving average of $86.19 and a 200 day simple moving average of $73.80.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, hitting 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 for the quarter, compared to analyst estimates of $189.65 million. During the same period in the prior year, the firm posted ($0.12) EPS. The company's revenue was up 63.4% on a year-over-year basis. Equities research analysts predict that Rocket Lab Corporation will post -0.29 EPS for the current year.

Insider Activity at Rocket Lab

In other Rocket Lab news, CFO Adam C. Spice sold 62,744 shares of Rocket Lab stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $69.59, for a total value of $4,366,354.96. Following the transaction, the chief financial officer owned 1,296,824 shares in the company, valued at $90,245,982.16. This trade represents a 4.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Peter Beck sold 18,857 shares of the business'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 $1,312,258.63. Following the sale, the chief executive officer directly owned 884,085 shares of the company's stock, valued at $61,523,475.15. This represents a 2.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 333,449 shares of company stock valued at $28,295,233 over the last 90 days. 8.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently modified their holdings of the company. Baillie Gifford & Co. lifted its position in Rocket Lab by 47.2% during the fourth quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer's stock valued at $1,245,317,000 after buying an additional 5,725,536 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Rocket Lab by 13.4% in the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock worth $3,308,033,000 after acquiring an additional 5,610,469 shares in the last quarter. Norges Bank purchased a new position in shares of Rocket Lab in the 4th quarter valued at $341,036,000. Alliancebernstein L.P. lifted its holdings in shares of Rocket Lab by 818.8% during the 3rd quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer's stock valued at $104,929,000 after acquiring an additional 1,951,755 shares in the last quarter. Finally, Capital World Investors lifted its holdings in shares of Rocket Lab by 12.0% during the 4th 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. 71.78% of the stock is owned by institutional investors and hedge funds.

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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