Rocket Lab (NASDAQ:RKLB) Upgraded to Strong-Buy at New Street Research

Key Points

• New Street Research upgraded Rocket Lab to a strong-buy, adding to generally bullish Wall Street sentiment on the stock. The consensus rating remains Moderate Buy, with an average target price of $97.19.
• Rocket Lab recently reported Q1 revenue of $200.35 million, topping estimates and rising 63.4% year over year, while EPS matched expectations at -$0.07. The company also has a large market cap and a strong balance sheet, with low debt and solid liquidity ratios.
• Investor interest remains high: shares have traded near their 52-week high, institutional ownership is 71.78%, and several hedge funds have increased stakes. However, insiders have also sold shares recently, which may reflect some caution after the stock’s sharp run-up.

Rocket Lab (NASDAQ:RKLB - Get Free Report) was upgraded by research analysts at New Street Research to a "strong-buy" rating in a research report issued on Wednesday,Zacks.com reports.

Other analysts have also issued research reports about 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. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $120.00 price target on shares of Rocket Lab in a report on Tuesday. Bank of America lifted their price target on shares of Rocket Lab from $60.00 to $120.00 and gave the stock a "buy" rating in a report on Tuesday, January 20th. Zacks Research lowered shares of Rocket Lab from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 10th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $85.00 price target on shares of Rocket Lab in a report on Friday, March 13th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Rocket Lab currently has a consensus rating of "Moderate Buy" and an average target price of $97.19.

Rocket Lab Stock Performance

Shares of Rocket Lab stock opened at $132.55 on Wednesday. Rocket Lab has a fifty-two week low of $22.77 and a fifty-two week high of $133.18. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.47 and a quick ratio of 4.02. The firm has a market capitalization of $75.48 billion, a P/E ratio of -414.22 and a beta of 2.30. The company's 50 day moving average price is $77.75 and its two-hundred day moving average price is $70.44.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its earnings results 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 net margin of 26.87% and a negative return on equity of 11.72%. The firm had revenue of $200.35 million for the quarter, compared to analyst estimates of $189.65 million. During the same quarter last year, the business posted ($0.12) earnings per share. The company's quarterly revenue was up 63.4% on a year-over-year basis. On average, equities analysts forecast that Rocket Lab will post -0.22 earnings per share for the current fiscal year.

Insider Activity at Rocket Lab

In related news, insider Frank Klein sold 44,482 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 value of $3,095,502.38. Following the transaction, the insider owned 1,125,005 shares in the company, valued at $78,289,097.95. The trade was a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 completion of the transaction, the chief executive officer owned 884,085 shares in the company, valued at approximately $61,523,475.15. The trade was a 2.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 333,449 shares of company stock valued at $28,295,233 in the last quarter. Insiders own 8.40% of the company's stock.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently bought and sold shares of RKLB. Baillie Gifford & Co. lifted its holdings in Rocket Lab by 176.1% in the third quarter. Baillie Gifford & Co. now owns 12,125,910 shares of the rocket manufacturer's stock valued at $580,952,000 after buying an additional 7,734,788 shares during the period. Vanguard Group Inc. lifted its holdings in Rocket Lab by 13.4% in 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. Norges Bank acquired a new position in Rocket Lab in the fourth quarter valued at $341,036,000. Alliancebernstein L.P. lifted its holdings in Rocket Lab by 818.8% in the third quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer's stock valued at $104,929,000 after buying an additional 1,951,755 shares during the period. Finally, Capital World Investors lifted 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 buying an additional 1,738,623 shares during the period. Institutional investors and hedge funds own 71.78% of the company's stock.

Trending Headlines about Rocket Lab

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

• Positive Sentiment: Shares are benefiting from renewed investor confidence after a strong first-quarter report and follow-on analyst price target increases, which reinforced the view that Rocket Lab’s growth remains on track. Why Rocket Lab (RKLB) Stock Is Trading Up Today
• Positive Sentiment: Momentum is also being driven by optimism that Neutron launches later this year could open a larger addressable market and position Rocket Lab as a stronger competitor in medium-lift launches. Rocket Lab Stock Is Getting a Major Lift. Investors Are Betting on Its Neutron Launch Later This Year.
• Positive Sentiment: Investor sentiment improved further after Rocket Lab reported a $2.2 billion backlog and announced a new multi-launch deal, signaling healthy demand visibility. Rocket Lab Stock Jumps After $2.2B Backlog and New Multi-Launch Deal
• Positive Sentiment: The company is also expanding its defense-related relevance, including work tied to hypersonics, which could diversify revenue beyond satellite launches and support long-term growth. Anduril Hires Rocket Lab to Help It With Hypersonics
• Neutral Sentiment: Rocket Lab also registered shares for the Mynaric acquisition resale, a routine corporate filing that may matter strategically but is not an immediate operating catalyst. Rocket Lab Registers Shares for Mynaric Acquisition Resale
• Negative Sentiment: On the cautionary side, insider selling by a director may raise some concerns about valuation after the stock’s sharp run-up, even if it does not change the company’s fundamentals. Director Alexander R. Slusky transaction filing

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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