Rocket Lab's (RKLB) "Hold" Rating Reiterated at BTIG Research

Key Points

• BTIG Research reiterated its “hold” rating on Rocket Lab, even as several other analysts have turned more positive on the stock.
• Recent analyst actions were mixed overall: some firms upgraded price targets and ratings, while others lowered their stance, leaving Rocket Lab with a Moderate Buy consensus and a $97.19 average price target.
• Rocket Lab’s shares were up 6.8% and the company continues to show strong operating momentum, including record Q1 revenue of $200.35 million and a raised outlook backdrop supported by investor optimism and institutional buying.

Rocket Lab (NASDAQ:RKLB - Get Free Report)'s stock had its "hold" rating restated by stock analysts at BTIG Research in a research note issued to investors on Tuesday,Benzinga reports.

Several other brokerages have also issued reports on RKLB. KeyCorp lowered Rocket Lab from an "overweight" rating to a "sector weight" rating in a research report on Thursday, January 15th. TD Cowen raised their price target on Rocket Lab from $90.00 to $120.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Stifel Nicolaus restated a "buy" rating and set a $105.00 price objective (up from $90.00) on shares of Rocket Lab in a report on Monday, April 20th. Needham & Company LLC upped their price objective on Rocket Lab from $95.00 to $120.00 and gave the company a "buy" rating in a research report on Monday. Finally, Craig Hallum upgraded Rocket Lab from a "hold" rating to a "buy" rating and set a $98.00 target price on the stock in a research note on Friday, May 8th. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $97.19.

Rocket Lab Trading Up 6.8%

Shares of RKLB opened at $132.55 on Tuesday. The company's fifty day simple moving average is $77.75 and its 200-day simple moving average is $70.44. The company has a market cap of $75.48 billion, a P/E ratio of -414.22 and a beta of 2.30. The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02. Rocket Lab has a twelve month low of $22.77 and a twelve month high of $133.18.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, hitting 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 during the quarter, compared to analysts' expectations of $189.65 million. During the same period in the previous year, the company earned ($0.12) EPS. The firm's revenue for the quarter was up 63.4% compared to the same quarter last year. As a group, analysts expect that Rocket Lab will post -0.22 EPS for the current year.

Insider Activity

In other Rocket Lab news, insider Frank Klein sold 36,768 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $71.95, for a total transaction of $2,645,457.60. Following the transaction, the insider directly owned 1,088,237 shares in the company, valued at $78,298,652.15. This trade represents a 3.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Peter Beck sold 18,857 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 $1,312,258.63. Following the sale, the chief executive officer directly owned 884,085 shares of the company's stock, valued at approximately $61,523,475.15. This trade represents a 2.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 333,449 shares of company stock valued at $28,295,233. Insiders own 8.40% of the company's stock.

Hedge Funds Weigh In On Rocket Lab

Several institutional investors have recently made changes to their positions in the company. Baillie Gifford & Co. grew its holdings in Rocket Lab by 176.1% during the 3rd quarter. Baillie Gifford & Co. now owns 12,125,910 shares of the rocket manufacturer's stock worth $580,952,000 after acquiring an additional 7,734,788 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock valued at $3,308,033,000 after purchasing an additional 5,610,469 shares in the last quarter. Norges Bank bought a new stake in shares of Rocket Lab in the 4th quarter valued at about $341,036,000. Alliancebernstein L.P. lifted its position in shares of Rocket Lab by 818.8% in the 3rd quarter. Alliancebernstein L.P. now owns 2,190,132 shares of the rocket manufacturer's stock worth $104,929,000 after purchasing an additional 1,951,755 shares during the period. Finally, Capital World Investors boosted its stake in shares of Rocket Lab by 12.0% during 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 purchasing an additional 1,738,623 shares in the last quarter. Hedge funds and other institutional investors own 71.78% of the company's stock.

Rocket Lab News Roundup

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

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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