Rocket Lab (NASDAQ:RKLB) Rating Increased to Moderate Buy at Raymond James Financial

Rocket Lab (NASDAQ:RKLB) was upgraded by investment analysts at Raymond James Financial to a “moderate buy” rating in a report released on Friday, Zacks reports.

RKLB has been the subject of several other research reports. KeyCorp reissued an “overweight” rating on shares of Rocket Lab in a report on Tuesday, August 11th. Wall Street Zen lowered Rocket Lab from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Roth Capital set a $110.00 price target on Rocket Lab in a research report on Tuesday, August 11th. Craig Hallum boosted their price target on Rocket Lab from $98.00 to $120.00 and gave the company a “buy” rating in a report on Monday, June 29th. Finally, Morgan Stanley restated an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, July 8th. Four investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Rocket Lab currently has an average rating of “Moderate Buy” and a consensus price target of $107.32.

Rocket Lab Stock Performance

Shares of RKLB opened at $62.95 on Friday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.98 and a current ratio of 5.48. The stock has a 50-day moving average of $71.58 and a two-hundred day moving average of $84.45. The stock has a market cap of $37.67 billion, a P/E ratio of -233.14 and a beta of 2.60. Rocket Lab has a one year low of $37.57 and a one year high of $151.00.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $234.07 million during the quarter, compared to analyst estimates of $231.62 million. As a group, research analysts predict that Rocket Lab will post -0.2 EPS for the current year.

Insider Transactions at Rocket Lab

In related news, CFO Adam Spice sold 140,157 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $62.63, for a total value of $8,778,032.91. Following the completion of the transaction, the chief financial officer owned 1,155,967 shares of the company’s stock, valued at approximately $72,398,213.21. This represents a 10.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Klein sold 45,692 shares of the stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $69.63, for a total value of $3,181,533.96. Following the transaction, the insider owned 961,295 shares in the company, valued at $66,934,970.85. This represents a 4.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 have sold 3,624,371 shares of company stock worth $312,944,881 over the last quarter. Company insiders own 8.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. California State Teachers Retirement System boosted its holdings in shares of Rocket Lab by 12,984.2% during the 2nd quarter. California State Teachers Retirement System now owns 96,179,045 shares of the rocket manufacturer’s stock worth $9,776,600,000 after purchasing an additional 95,443,970 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Rocket Lab in the second quarter valued at approximately $4,124,970,000. Bank of New York Mellon Corp acquired a new stake in shares of Rocket Lab in the second quarter valued at approximately $245,764,000. Norges Bank purchased a new position in Rocket Lab during the fourth quarter worth approximately $341,036,000. Finally, Bank of America Corp DE purchased a new position in Rocket Lab during the second quarter worth approximately $437,280,000. Hedge funds and other institutional investors own 71.78% of the company’s stock.

More Rocket Lab News

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

• Positive Sentiment: Successful Electron launch supports near-term momentum. Rocket Lab deployed a confidential customer’s Earth-observation satellite into a 500-kilometer orbit. The mission was the company’s 95th Electron launch overall and its 16th this year, highlighting a reliable launch cadence in a capacity-constrained market. Another commercial launch is planned before the end of September. Rocket Lab Successfully Launches 16th Electron Mission
• Positive Sentiment: Analysts see substantial upside potential. Raymond James identified two opportunities with significant upside, while multiple analysts maintain Strong Buy ratings and price targets well above the current trading level. The bullish case is supported by Rocket Lab’s record revenue, expanding backlog, and more than $1 billion in new contracts since the second quarter began. Why Raymond James Is Betting Big on Rocket Lab
• Neutral Sentiment: The investment case depends on Neutron. Commentary argues Rocket Lab’s established launch and space-systems operations could justify taking the risk on its reusable Neutron medium-lift rocket. The company’s core business is improving, but Neutron’s development schedule has not changed, leaving investors focused on execution and potential delays. Rocket Lab’s Core Business Makes the Neutron Gamble Worth Taking
• Negative Sentiment: Recent underperformance reflects company-specific concerns. RKLB declined sharply from mid-June through September 10 despite record revenue and new contracts, substantially underperforming major defense peers. The drop suggests investors remain concerned about Neutron execution, elevated expectations, and the stock’s high-risk valuation. What’s Behind the RKLB Drop?
• Negative Sentiment: Insider selling is a notable overhang. Reported activity showed 97 insider sales and no purchases over the past six months, including substantial sales by CEO Peter Beck and other executives. This may reinforce concerns about valuation even as operating metrics improve.

Rocket Lab Company Profile

Rocket Lab USA, Inc is a space company that provides launch services and space systems for commercial, civil and national security customers. The company develops and operates launch vehicles, spacecraft and satellite components, with activities spanning the design, manufacture and operation of space hardware.

Rocket Lab’s Electron rocket is a small-lift orbital launch vehicle designed to deploy small satellites. The company also develops HASTE, a suborbital test vehicle based on Electron technology, and is developing Neutron, a larger reusable launch vehicle intended to support a broader range of missions.