Rocket Lab (NASDAQ:RKLB) Trading Up 9.4% - Time to Buy?

Key Points

• Rocket Lab's stock surged 9.4%, selling at $52.47 after trading as high as $52.65, with a significant increase in trading volume at approximately 34.9 million shares.
• Analyst upgrades have been issued, raising price targets significantly with Bank of America and KeyCorp both setting targets at $50, contributing to a consensus rating of "Moderate Buy" for the stock.
• CEO Peter Beck and Director Matthew Ocko recently sold substantial amounts of their shares, indicating a 36.49% and 77.57% decrease in their positions, respectively.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report)'s share price was up 9.4% on Thursday . The stock traded as high as $52.65 and last traded at $52.47. Approximately 34,981,535 shares changed hands during mid-day trading, an increase of 71% from the average daily volume of 20,515,912 shares. The stock had previously closed at $47.97.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on RKLB shares. Bank of America upped their price target on shares of Rocket Lab from $30.00 to $50.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. KeyCorp increased their target price on shares of Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Needham & Company LLC restated a "buy" rating and set a $55.00 target price on shares of Rocket Lab in a report on Wednesday, September 3rd. Cantor Fitzgerald increased their target price on shares of Rocket Lab from $35.00 to $54.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Finally, Stifel Nicolaus increased their price target on shares of Rocket Lab from $34.00 to $55.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Rocket Lab presently has a consensus rating of "Moderate Buy" and a consensus price target of $42.27.

Rocket Lab Trading Up 9.4%

The business's 50 day moving average price is $46.35 and its two-hundred day moving average price is $33.60. The company has a current ratio of 2.67, a quick ratio of 2.33 and a debt-to-equity ratio of 0.60. The company has a market capitalization of $25.39 billion, a price-to-earnings ratio of -116.60 and a beta of 2.14.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.06). Rocket Lab had a negative net margin of 45.87% and a negative return on equity of 48.14%. The company had revenue of $144.50 million during the quarter, compared to analyst estimates of $135.42 million. During the same quarter in the previous year, the business posted ($0.08) earnings per share. The company's revenue for the quarter was up 35.9% on a year-over-year basis. Rocket Lab has set its Q3 2025 guidance at EPS. On average, equities analysts predict that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other Rocket Lab news, CEO Peter Beck sold 1,436,442 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $48.75, for a total transaction of $70,026,547.50. Following the completion of the transaction, the chief executive officer owned 2,500,000 shares in the company, valued at approximately $121,875,000. This trade represents a 36.49% 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 Matthew Ocko sold 1,873,097 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The stock was sold at an average price of $48.20, for a total transaction of $90,283,275.40. Following the transaction, the director owned 541,526 shares of the company's stock, valued at approximately $26,101,553.20. The trade was a 77.57% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 5,406,361 shares of company stock worth $267,483,973. 11.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of RKLB. Versant Capital Management Inc lifted its position in shares of Rocket Lab by 118.1% during the 1st quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock valued at $28,000 after acquiring an additional 860 shares during the period. EverSource Wealth Advisors LLC lifted its position in shares of Rocket Lab by 109.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after acquiring an additional 416 shares during the period. MassMutual Private Wealth & Trust FSB acquired a new position in shares of Rocket Lab during the 1st quarter valued at $29,000. Farther Finance Advisors LLC increased its stake in Rocket Lab by 181.1% during the 1st quarter. Farther Finance Advisors LLC now owns 1,903 shares of the rocket manufacturer's stock valued at $35,000 after purchasing an additional 1,226 shares in the last quarter. Finally, Spectrum Wealth Counsel LLC increased its stake in Rocket Lab by 100.0% during the 1st quarter. Spectrum Wealth Counsel LLC now owns 2,000 shares of the rocket manufacturer's stock valued at $36,000 after purchasing an additional 1,000 shares in the last quarter. Institutional investors and hedge funds own 71.78% of the company's stock.

Rocket Lab Company Profile

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.

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