Stock Traders Purchase Large Volume of Rocket Lab Call Options (NASDAQ:RKLB)

Key Points

• Rocket Lab saw an increase in call options trading, with investors purchasing 115,891 call options, a 16% rise over the average daily volume.
• Insiders at Rocket Lab sold a total of 1,130,995 shares of stock worth nearly $29.7 million over the last 90 days, with insiders now owning 11.90% of the company's stock.
• Wall Street analysts project growth for Rocket Lab, with various firms raising their price targets, resulting in a consensus rating of "Moderate Buy" and a target price of $42.27.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) was the target of some unusual options trading activity on Tuesday. Investors acquired 115,891 call options on the company. Thisrepresentsanincreaseof16% compared to the average daily volume of 99,837 call options.

Insider Activity at Rocket Lab

In related news, insider Arjun Kampani sold 5,194 shares of Rocket Lab stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $30.00, for a total value of $155,820.00. Following the completion of the sale, the insider owned 530,230 shares in the company, valued at approximately $15,906,900. This trade represents a 0.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Merline Saintil sold 6,353 shares of Rocket Lab stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total value of $212,063.14. Following the completion of the sale, the director directly owned 419,569 shares of the company's stock, valued at $14,005,213.22. The trade was a 1.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,130,995 shares of company stock valued at $29,686,039 over the last 90 days. Insiders own 11.90% of the company's stock.

Hedge Funds Weigh In On Rocket Lab

A number of hedge funds have recently made changes to their positions in the stock. Kingstone Capital Partners Texas LLC purchased a new position in Rocket Lab in the second quarter valued at about $192,918,000. Norges Bank purchased a new stake in shares of Rocket Lab during the 2nd quarter valued at about $164,751,000. Vanguard Group Inc. lifted its position in Rocket Lab 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 acquiring an additional 3,833,969 shares in the last quarter. Two Sigma Advisers LP purchased a new position in Rocket Lab in the 4th quarter worth approximately $72,623,000. Finally, Invesco Ltd. boosted its holdings in Rocket Lab by 67.0% in the 2nd quarter. Invesco Ltd. now owns 6,242,304 shares of the rocket manufacturer's stock worth $223,287,000 after acquiring an additional 2,504,054 shares during the period. Institutional investors and hedge funds own 71.78% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on RKLB. Stifel Nicolaus increased their price objective on Rocket Lab from $34.00 to $55.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. The Goldman Sachs Group began coverage on Rocket Lab in a research report on Monday, June 30th. They set a "neutral" rating and a $27.00 target price on the stock. Cantor Fitzgerald raised their price target on Rocket Lab from $35.00 to $54.00 and gave the company an "overweight" rating in a report on Friday, August 8th. Citigroup reiterated a "buy" rating and issued a $50.00 price objective (up previously from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. Finally, Bank of America upped their price target on shares of Rocket Lab from $30.00 to $50.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $42.27.

Rocket Lab Trading Up 3.7%

RKLB stock traded up $1.76 during midday trading on Tuesday, hitting $48.98. The stock had a trading volume of 19,765,201 shares, compared to its average volume of 20,010,785. Rocket Lab has a 12-month low of $5.74 and a 12-month high of $53.44. The company's 50-day moving average price is $41.15 and its 200 day moving average price is $28.94. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.67 and a quick ratio of 2.33. The firm has a market cap of $23.48 billion, a PE ratio of -109.13 and a beta of 2.17.

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

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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