Rocket Lab (NASDAQ:RKLB) Rating Increased to Strong-Buy at New Street Research

Rocket Lab (NASDAQ:RKLB) was upgraded by research analysts at New Street Research to a “strong-buy” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other equities research analysts also recently weighed in on RKLB. Stifel Nicolaus reaffirmed a “buy” rating and issued a $105.00 price target (up from $90.00) on shares of Rocket Lab in a research note on Monday, April 20th. Clear Str raised shares of Rocket Lab to a “strong-buy” rating in a research note on Wednesday, March 18th. Zacks Research downgraded shares of Rocket Lab from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Citigroup reissued an “outperform” rating on shares of Rocket Lab in a research report on Friday, May 8th. Finally, Morgan Stanley raised shares of Rocket Lab from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $67.00 to $105.00 in a research report on Friday, January 16th. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Rocket Lab has an average rating of “Moderate Buy” and an average price target of $97.19.

Rocket Lab Trading Up 6.8%

RKLB opened at $132.55 on Wednesday. Rocket Lab has a 1-year low of $22.77 and a 1-year high of $133.18. The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02. The company has a market cap of $75.48 billion, a P/E ratio of -414.22 and a beta of 2.30. The company has a fifty day moving average price of $77.75 and a two-hundred day moving average price of $70.44.

Rocket Lab (NASDAQ:RKLB) last posted its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share 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 firm had revenue of $200.35 million during the quarter, compared to the consensus estimate of $189.65 million. During the same period in the previous year, the firm posted ($0.12) earnings per share. The business’s revenue was up 63.4% compared to the same quarter last year. Analysts predict that Rocket Lab will post -0.22 EPS for the current fiscal year.

Insider Activity at Rocket Lab

In other news, Director Merline Saintil sold 18,126 shares of the business’s stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $75.04, for a total transaction of $1,360,175.04. Following the completion of the sale, the director directly owned 261,903 shares of the company’s stock, valued at $19,653,201.12. The trade was a 6.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Peter Beck sold 18,857 shares of the company’s stock in a transaction dated 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 sale, the chief executive officer directly owned 884,085 shares of the company’s stock, valued at $61,523,475.15. The trade was a 2.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 333,449 shares of company stock valued at $28,295,233 over the last quarter. 8.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rocket Lab

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Rocket Lab by 13.4% in 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 in the last quarter. Baillie Gifford & Co. grew its position in Rocket Lab by 47.2% in the 4th quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock worth $1,245,317,000 after purchasing an additional 5,725,536 shares in the last quarter. Capital World Investors grew its position in Rocket Lab by 12.0% in the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock worth $1,130,172,000 after purchasing an additional 1,738,623 shares in the last quarter. State Street Corp grew its position in Rocket Lab by 1.0% in the 4th quarter. State Street Corp now owns 12,520,223 shares of the rocket manufacturer’s stock worth $873,411,000 after purchasing an additional 120,652 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Rocket Lab by 10.1% in the 4th quarter. Geode Capital Management LLC now owns 9,004,724 shares of the rocket manufacturer’s stock worth $626,605,000 after purchasing an additional 825,158 shares in the last quarter. 71.78% of the stock is owned by institutional investors.

Rocket Lab News Summary

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

• Positive Sentiment: Shares are benefiting from renewed investor confidence after a strong first-quarter report and follow-on analyst price target increases, which reinforced the view that Rocket Lab’s growth remains on track. Why Rocket Lab (RKLB) Stock Is Trading Up Today
• Positive Sentiment: Momentum is also being driven by optimism that Neutron launches later this year could open a larger addressable market and position Rocket Lab as a stronger competitor in medium-lift launches. Rocket Lab Stock Is Getting a Major Lift. Investors Are Betting on Its Neutron Launch Later This Year.
• Positive Sentiment: Investor sentiment improved further after Rocket Lab reported a $2.2 billion backlog and announced a new multi-launch deal, signaling healthy demand visibility. Rocket Lab Stock Jumps After $2.2B Backlog and New Multi-Launch Deal
• Positive Sentiment: The company is also expanding its defense-related relevance, including work tied to hypersonics, which could diversify revenue beyond satellite launches and support long-term growth. Anduril Hires Rocket Lab to Help It With Hypersonics
• Neutral Sentiment: Rocket Lab also registered shares for the Mynaric acquisition resale, a routine corporate filing that may matter strategically but is not an immediate operating catalyst. Rocket Lab Registers Shares for Mynaric Acquisition Resale
• Negative Sentiment: On the cautionary side, insider selling by a director may raise some concerns about valuation after the stock’s sharp run-up, even if it does not change the company’s fundamentals. Director Alexander R. Slusky transaction filing

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.