Traders Buy High Volume of Call Options on Rocket Lab (NASDAQ:RKLB)

Key Points

• Traders have shown significant interest in Rocket Lab, purchasing 192,583 call options, a 45% increase from the average volume, suggesting bullish sentiment on the stock.
• Rocket Lab's stock price hit $55.65 during trading, with a market capitalization of $26.93 billion and a significant trading volume of over 28 million shares.
• Recent insider transactions revealed that Director Matthew Ocko sold 1,873,097 shares at an average price of $48.20, marking a 77.57% decrease in their ownership, while company insiders have collectively sold over 5 million shares recently.

Rocket Lab Corporation (NASDAQ:RKLB - Get Free Report) was the target of some unusual options trading on Friday. Traders purchased 192,583 call options on the stock. This represents an increase of approximately 45% compared to the average volume of 132,734 call options.

Rocket Lab Price Performance

NASDAQ:RKLB traded up $3.18 during mid-day trading on Friday, hitting $55.65. The company's stock had a trading volume of 28,391,723 shares, compared to its average volume of 20,545,623. Rocket Lab has a fifty-two week low of $8.99 and a fifty-two week high of $55.99. 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 $26.93 billion, a price-to-earnings ratio of -123.95 and a beta of 2.14. The stock has a fifty day moving average of $46.44 and a 200-day moving average of $33.83.

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 (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.06). The business had revenue of $144.50 million during the quarter, compared to analyst estimates of $135.42 million. Rocket Lab had a negative return on equity of 48.14% and a negative net margin of 45.87%.The business's revenue for the quarter was up 35.9% on a year-over-year basis. During the same period last year, the company earned ($0.08) EPS. Rocket Lab has set its Q3 2025 guidance at EPS. As a group, equities analysts forecast that Rocket Lab will post -0.38 EPS for the current fiscal year.

Insider Transactions at Rocket Lab

In other news, Director Matthew Ocko sold 1,873,097 shares of the firm's stock in a transaction dated 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 sale, the director owned 541,526 shares of the company's stock, valued at $26,101,553.20. This trade represents a 77.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Frank Klein sold 45,535 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $48.97, for a total value of $2,229,848.95. Following the completion of the transaction, the insider owned 1,320,291 shares of the company's stock, valued at approximately $64,654,650.27. This represents a 3.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 5,406,361 shares of company stock valued at $267,483,973. Corporate insiders own 11.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC raised its position in shares of Rocket Lab by 109.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after buying an additional 416 shares in the last quarter. Atlantic Union Bankshares Corp purchased a new stake in shares of Rocket Lab in the second quarter valued at about $36,000. Kilter Group LLC purchased a new stake in shares of Rocket Lab during the 2nd quarter worth approximately $37,000. ORG Partners LLC lifted its position in Rocket Lab by 491.9% during the second quarter. ORG Partners LLC now owns 1,095 shares of the rocket manufacturer's stock valued at $38,000 after purchasing an additional 910 shares during the last quarter. Finally, Golden State Wealth Management LLC lifted its holdings in shares of Rocket Lab by 3,250.0% in the 2nd quarter. Golden State Wealth Management LLC now owns 1,340 shares of the rocket manufacturer's stock worth $48,000 after acquiring an additional 1,300 shares during the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on RKLB shares. Roth Capital restated a "buy" rating on shares of Rocket Lab in a research note on Friday, August 29th. Stifel Nicolaus raised their price target on Rocket Lab from $34.00 to $55.00 and gave the company a "buy" rating in a report on Tuesday, August 5th. Citigroup reaffirmed a "buy" rating and issued a $50.00 target price (up from $33.00) on shares of Rocket Lab in a report on Monday, July 14th. Cantor Fitzgerald upped their target price on Rocket Lab from $35.00 to $54.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Finally, The Goldman Sachs Group began coverage on Rocket Lab in a report on Monday, June 30th. They set a "neutral" rating and a $27.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, Rocket Lab has an average rating of "Moderate Buy" and an average target price of $42.27.

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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