Rocket Lab (NASDAQ:RKLB) Trading Up 8.2% – Should You Buy?

Rocket Lab Corporation (NASDAQ:RKLB) shares were up 8.2% on Friday . The company traded as high as $139.76 and last traded at $135.76. Approximately 32,708,704 shares traded hands during trading, an increase of 37% from the average daily volume of 23,873,797 shares. The stock had previously closed at $125.45.

Rocket Lab News Roundup

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

• Positive Sentiment: Rocket Lab won a $90 million Space Force contract, which expands its satellite business into geostationary orbit and adds a meaningful new source of revenue. Article Title
• Positive Sentiment: The company completed its 9th Electron launch for Synspective, underscoring strong execution and a durable commercial launch partnership. Article Title
• Neutral Sentiment: Broader space-stock momentum and renewed interest ahead of SpaceX’s IPO are also lifting sentiment across the sector, including RKLB. Article Title
• Negative Sentiment: Some investors remain wary after Rocket Lab’s recent announcement of a potential $3 billion share-sale program, which raised dilution concerns earlier in the week. Article Title

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on RKLB shares. Roth Mkm lifted their price target on shares of Rocket Lab from $90.00 to $100.00 and gave the stock a “buy” rating in a research note on Friday, April 17th. Wall Street Zen upgraded shares of Rocket Lab from a “sell” rating to a “hold” rating in a research note on Sunday, February 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rocket Lab in a research note on Tuesday, April 21st. Stifel Nicolaus reiterated a “buy” rating and set a $105.00 price target (up from $90.00) on shares of Rocket Lab in a research note on Monday, April 20th. Finally, Citizens Jmp lifted their price target on shares of Rocket Lab from $85.00 to $95.00 and gave the stock a “market outperform” rating in a research note on Friday, May 8th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $97.19.

Rocket Lab Price Performance

The company has a debt-to-equity ratio of 0.02, a quick ratio of 4.02 and a current ratio of 4.47. The company’s 50 day moving average price is $84.84 and its 200 day moving average price is $73.16. The company has a market cap of $78.57 billion, a price-to-earnings ratio of -424.25 and a beta of 2.30.

Rocket Lab (NASDAQ:RKLB) last issued its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, meeting the consensus estimate of ($0.07). Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The company had revenue of $200.35 million for the quarter, compared to the consensus estimate of $189.65 million. During the same quarter 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. On average, equities research analysts predict that Rocket Lab Corporation will post -0.29 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Alexander R. Slusky sold 100,000 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $118.08, for a total value of $11,808,000.00. Following the sale, the director owned 434,675 shares in the company, valued at approximately $51,326,424. The trade was a 18.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Arjun Kampani sold 23,711 shares of the business’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $71.95, for a total transaction of $1,706,006.45. Following the completion of the sale, the senior vice president owned 397,988 shares in the company, valued at $28,635,236.60. This represents a 5.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 333,449 shares of company stock worth $28,295,233 in the last three months. Company insiders own 8.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Arizona State Retirement System raised its holdings in Rocket Lab by 13.6% during the 3rd quarter. Arizona State Retirement System now owns 127,794 shares of the rocket manufacturer’s stock worth $6,123,000 after purchasing an additional 15,307 shares during the last quarter. Firsthand Capital Management Inc. raised its holdings in Rocket Lab by 40.0% during the 3rd quarter. Firsthand Capital Management Inc. now owns 70,000 shares of the rocket manufacturer’s stock worth $3,354,000 after purchasing an additional 20,000 shares during the last quarter. Swiss National Bank raised its holdings in Rocket Lab by 67.7% during the 3rd quarter. Swiss National Bank now owns 1,243,630 shares of the rocket manufacturer’s stock worth $59,582,000 after purchasing an additional 501,830 shares during the last quarter. Vanguard Group Inc. raised its holdings in Rocket Lab by 13.4% during the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock worth $3,308,033,000 after purchasing an additional 5,610,469 shares during the last quarter. Finally, State of New Jersey Common Pension Fund D raised its holdings in Rocket Lab by 14.4% during the 3rd quarter. State of New Jersey Common Pension Fund D now owns 153,106 shares of the rocket manufacturer’s stock worth $7,335,000 after purchasing an additional 19,304 shares during the last quarter. Institutional investors and hedge funds own 71.78% of the company’s stock.

Rocket Lab Company Profile

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.