Rocket Lab’s (RKLB) “Mixed” Rating Reaffirmed at Cantor Fitzgerald

Rocket Lab (NASDAQ:RKLB)‘s stock had its “mixed” rating reaffirmed by stock analysts at Cantor Fitzgerald in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports. They presently have a $122.00 price objective on the rocket manufacturer’s stock. Cantor Fitzgerald’s price objective points to a potential upside of 139.97% from the company’s previous close.

A number of other research firms have also recently weighed in on RKLB. KeyCorp reissued an “overweight” rating on shares of Rocket Lab in a report on Tuesday, August 11th. Berenberg Bank assumed coverage on shares of Rocket Lab in a report on Wednesday, September 2nd. They set a “buy” rating and a $83.00 price objective on the stock. Raymond James Financial assumed coverage on shares of Rocket Lab in a report on Friday, September 11th. They set an “outperform” rating and a $80.00 price objective on the stock. Piper Sandler assumed coverage on shares of Rocket Lab in a report on Wednesday, July 15th. They set a “neutral” rating and a $83.00 price objective on the stock. Finally, KGI Securities raised shares of Rocket Lab from a “neutral” rating to an “outperform” rating and set a $107.00 price objective on the stock in a report on Monday, July 27th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Rocket Lab has an average rating of “Moderate Buy” and an average target price of $102.05.

Rocket Lab Stock Down 8.0%

RKLB stock traded down $4.41 during midday trading on Thursday, reaching $50.84. 23,838,969 shares of the company were exchanged, compared to its average volume of 23,101,795. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.98 and a current ratio of 5.48. Rocket Lab has a 1-year low of $37.57 and a 1-year high of $151.00. The stock’s 50-day simple moving average is $68.86 and its 200 day simple moving average is $84.06. The company has a market cap of $30.42 billion, a price-to-earnings ratio of -188.29 and a beta of 2.93.

Rocket Lab (NASDAQ:RKLB) last released its quarterly earnings data on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02). Rocket Lab had a negative return on equity of 6.48% and a negative net margin of 21.51%. The company had revenue of $234.07 million for the quarter, compared to analyst estimates of $231.62 million. On average, equities analysts forecast that Rocket Lab will post -0.20 earnings per share for the current year.

Insider Buying and Selling

In other Rocket Lab news, SVP Arjun Kampani sold 7,754 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $69.63, for a total value of $539,911.02. Following the transaction, the senior vice president directly owned 256,951 shares of the company’s stock, valued at approximately $17,891,498.13. The trade was a 2.93% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Frank Klein sold 45,692 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $69.63, for a total transaction of $3,181,533.96. Following the completion of the transaction, the insider directly owned 961,295 shares in the company, valued at $66,934,970.85. This represents a 4.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 400,749 shares of company stock worth $26,964,474 in the last ninety days. Insiders own 8.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in Rocket Lab in the 2nd quarter valued at about $4,124,970,000. Bank of America Corp DE purchased a new position in shares of Rocket Lab during the 2nd quarter worth about $437,280,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Rocket Lab by 14.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,737,451 shares of the rocket manufacturer’s stock worth $278,262,000 after acquiring an additional 352,094 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Rocket Lab during the 2nd quarter worth about $245,764,000. Finally, Amundi lifted its holdings in shares of Rocket Lab by 22.2% during the 2nd quarter. Amundi now owns 2,180,748 shares of the rocket manufacturer’s stock worth $221,673,000 after acquiring an additional 396,639 shares during the period. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

Key Rocket Lab News

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

• Positive Sentiment: Rocket Lab continues to benefit from strong existing operations, including its Electron launch business, satellite systems activities and defense contracts. The company reported record second-quarter revenue of approximately $234 million, up 62% year over year, and maintains a backlog of roughly $2.36 billion. Rocket Lab Still Has a $2.4B Backlog While Neutron Waits
• Positive Sentiment: Despite reducing estimates, several analysts remain bullish. Citizens JMP lowered its target to $90 from $130 but retained a Market Outperform rating; TD Cowen maintained a Buy rating and $90 target, while Cantor Fitzgerald and Roth Capital also remained constructive. Rocket Lab analyst coverage
• Neutral Sentiment: Management said the manufacturing issue has been addressed and that additional testing is expected before a launch date is finalized. The company is prioritizing reliability and quality, but investors must now wait longer for evidence that Neutron can expand Rocket Lab into the larger medium-lift launch market. Rocket Lab discusses Neutron program update and manufacturing challenges
• Negative Sentiment: The delay is especially damaging because Neutron is central to Rocket Lab’s growth and planned path toward adjusted EBITDA profitability. Repeated schedule slips are increasing execution concerns, extending cash-burn risk and postponing potential launch revenue. Rocket Lab pushes Neutron rocket debut flight to 2027
• Negative Sentiment: Technical momentum has also weakened after the sell-off pushed RKLB below the closely watched $60 support level and below its major moving averages. Although Wall Street’s consensus remains broadly positive, lower price targets and renewed skepticism have added pressure to the stock.

About Rocket Lab

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab’s primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.