Rocket Lab (NASDAQ:RKLB) Shares Up 6.8% Following Analyst Upgrade

Rocket Lab Corporation (NASDAQ:RKLB)’s stock price shot up 6.8% during trading on Thursday after New Street Research upgraded the stock to a strong-buy rating. The stock traded as high as $133.18 and last traded at $132.55. 24,910,460 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 23,548,742 shares. The stock had previously closed at $124.15.

A number of other research firms also recently issued reports on RKLB. TD Cowen lifted their price objective on shares of Rocket Lab from $90.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $85.00 price objective on shares of Rocket Lab in a report on Friday, March 13th. Zacks Research downgraded shares of Rocket Lab from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 10th. KeyCorp downgraded shares of Rocket Lab from an “overweight” rating to a “sector weight” rating in a report on Thursday, January 15th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rocket Lab in a report on Tuesday, April 21st. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $97.19.

Insider Buying and Selling

In related news, insider Frank Klein sold 44,482 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 $3,095,502.38. Following the transaction, the insider owned 1,125,005 shares in the company, valued at $78,289,097.95. This trade represents a 3.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 stock was sold at an average price of $69.59, for a total transaction of $1,312,258.63. Following the completion of the transaction, the chief executive officer owned 884,085 shares in the company, valued at approximately $61,523,475.15. The trade was a 2.09% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 333,449 shares of company stock worth $28,295,233 over the last 90 days. Insiders own 8.40% of the company’s stock.

Trending Headlines about Rocket Lab

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

• Positive Sentiment: Investors are still reacting to Rocket Lab’s Q1 earnings beat, with revenue up 63% year over year to about $200.4 million and a backlog of $2.2 billion, reinforcing confidence in the company’s growth trajectory. Why Rocket Lab Stock Is Rocketing Higher This Week
• Positive Sentiment: Analyst sentiment has improved after the report, including a higher price target from Deutsche Bank and additional bullish commentary that suggests Wall Street sees more upside if execution stays strong. Why Rocket Lab Stock Is Rocketing Higher This Week
• Positive Sentiment: Momentum is also being fueled by optimism around Rocket Lab’s Neutron rocket program, which investors see as a potential catalyst for expansion into a larger launch market later this year. Rocket Lab Stock Is Getting a Major Lift. Investors Are Betting on Its Neutron Launch Later This Year.
• Positive Sentiment: New contract wins and defense-related expansion, including work tied to missile defense and hypersonics, are helping investors view Rocket Lab as more than just a small-satellite launch company. Rocket Lab Targets Missile Defense and Golden Dome as Its Next Growth Market
• Neutral Sentiment: Some investors are also watching the recent insider selling by director Alexander Slusky, which may weigh on sentiment at these elevated levels but does not change the company’s operating story. Director Alexander R. Slusky transaction filing

Hedge Funds Weigh In On Rocket Lab

Large investors have recently added to or reduced their stakes in the business. Aventura Private Wealth LLC purchased a new position in Rocket Lab in the 4th quarter worth $25,000. Mcguire Capital Advisors Inc. purchased a new position in Rocket Lab in the 4th quarter worth $27,000. Zions Bancorporation National Association UT purchased a new position in shares of Rocket Lab in the fourth quarter valued at about $28,000. Gordian Capital Singapore Pte Ltd purchased a new position in shares of Rocket Lab in the fourth quarter valued at about $29,000. Finally, Reflection Asset Management purchased a new position in shares of Rocket Lab in the fourth quarter valued at about $30,000. Hedge funds and other institutional investors own 71.78% of the company’s stock.

Rocket Lab Price Performance

The business’s 50-day simple moving average is $78.81 and its 200-day simple moving average is $70.82. The stock has a market cap of $71.05 billion, a PE ratio of -389.91 and a beta of 2.30. The company has a quick ratio of 4.02, a current ratio of 4.47 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB) last released its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, meeting 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 for the quarter, compared to analysts’ expectations of $189.65 million. During the same quarter in the previous year, the company earned ($0.12) earnings per share. The company’s revenue for the quarter was up 63.4% compared to the same quarter last year. On average, research analysts expect that Rocket Lab Corporation will post -0.22 EPS for the current fiscal year.

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.