Rocket Lab USA (NASDAQ:RKLB) Trading 2% Higher - Here's Why

Rocket Lab USA, Inc. (NASDAQ:RKLB - Get Free Report) traded up 2% on Monday . The company traded as high as $26.40 and last traded at $25.91. 4,688,270 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 17,078,899 shares. The stock had previously closed at $25.41.

Analyst Ratings Changes

Several equities research analysts have commented on RKLB shares. TD Cowen upgraded Rocket Lab USA to a "strong-buy" rating in a research note on Monday, February 24th. Needham & Company LLC boosted their price objective on Rocket Lab USA from $28.00 to $32.00 and gave the stock a "buy" rating in a research note on Wednesday, May 28th. Wells Fargo & Company cut their price objective on Rocket Lab USA from $21.00 to $18.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 8th. Roth Capital upped their price target on Rocket Lab USA from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Wednesday, May 28th. Finally, Morgan Stanley upped their price target on Rocket Lab USA from $18.00 to $20.00 and gave the company an "equal weight" rating in a research report on Monday, March 10th. Five investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $26.18.

Rocket Lab USA Stock Performance

The company has a debt-to-equity ratio of 0.97, a current ratio of 2.58 and a quick ratio of 2.16. The company has a market capitalization of $11.76 billion, a price-to-earnings ratio of -69.93 and a beta of 2.08. The stock has a 50 day simple moving average of $23.54 and a two-hundred day simple moving average of $23.76.

Rocket Lab USA (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The rocket manufacturer reported ($0.12) earnings per share for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.02). Rocket Lab USA had a negative net margin of 51.76% and a negative return on equity of 39.47%. The business had revenue of $122.57 million during the quarter, compared to analyst estimates of $120.74 million. During the same quarter in the prior year, the business earned ($0.09) earnings per share. The firm's quarterly revenue was up 32.1% on a year-over-year basis. As a group, analysts anticipate that Rocket Lab USA, Inc. will post -0.38 earnings per share for the current year.

Insider Activity

In related news, insider Arjun Kampani sold 5,194 shares of the business's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $30.00, for a total value of $155,820.00. Following the transaction, the insider now owns 530,230 shares in the company, valued at $15,906,900. The trade was a 0.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Frank Klein sold 1,818 shares of the business's stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $26.51, for a total value of $48,195.18. Following the completion of the transaction, the insider now owns 1,368,372 shares in the company, valued at $36,275,541.72. This trade represents a 0.13% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 98,289 shares of company stock valued at $2,670,934. Insiders own 13.70% of the company's stock.

Hedge Funds Weigh In On Rocket Lab USA

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in Rocket Lab USA by 10.6% during the 1st quarter. Vanguard Group Inc. now owns 40,029,546 shares of the rocket manufacturer's stock worth $715,728,000 after purchasing an additional 3,833,969 shares during the period. Geode Capital Management LLC increased its position in Rocket Lab USA by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 8,285,693 shares of the rocket manufacturer's stock worth $211,084,000 after purchasing an additional 32,658 shares during the period. Invesco Ltd. increased its position in Rocket Lab USA by 56.1% during the 1st quarter. Invesco Ltd. now owns 3,738,250 shares of the rocket manufacturer's stock worth $66,840,000 after purchasing an additional 1,343,518 shares during the period. FMR LLC increased its position in Rocket Lab USA by 30,853.3% during the 4th quarter. FMR LLC now owns 3,696,136 shares of the rocket manufacturer's stock worth $94,141,000 after purchasing an additional 3,684,195 shares during the period. Finally, Northern Trust Corp increased its position in Rocket Lab USA by 9.5% during the 4th quarter. Northern Trust Corp now owns 3,227,617 shares of the rocket manufacturer's stock worth $82,207,000 after purchasing an additional 281,339 shares during the period. Institutional investors and hedge funds own 71.78% of the company's stock.

Rocket Lab USA 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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