Rocket Lab (NASDAQ:RKLB) Shares Up 5.5% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB) traded up 5.5% during mid-day trading on Wednesday. The stock traded as high as $68.26 and last traded at $66.15. Approximately 23,924,920 shares changed hands during mid-day trading, an increase of 5% from the average daily volume of 22,816,293 shares. The stock had previously closed at $62.71.

Trending Headlines about Rocket Lab

These are some of the RKLB headlines that stood out recently:

• Positive Sentiment: Analyst and investor interest offers support. Morgan Stanley maintained an Overweight rating, saying Neutron’s commercialization path and backlog support the long-term outlook, though it trimmed its target to $103. ARK Invest also reportedly bought about $3.4 million of Rocket Lab shares. Article Article
• Neutral Sentiment: Technical commentary pointed to shares breaking above a resistance level, which may be encouraging short-term momentum traders, but does not change the company’s fundamentals. Article
• Negative Sentiment: Losses and execution remain key concerns. Rocket Lab’s roughly $80 million quarterly net loss was wider than expected, and the first Neutron launch is now expected no earlier than 2027. The delay puts more weight on successful development and schedule execution, while CEO Peter Beck also flagged critical-mineral availability as an industry challenge. Article

Wall Street Analysts Forecast Growth

RKLB has been the subject of several analyst reports. Needham & Company LLC cut their price objective on shares of Rocket Lab from $120.00 to $100.00 and set a “buy” rating for the company in a report on Wednesday. Wall Street Zen cut shares of Rocket Lab from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Barclays dropped their target price on Rocket Lab from $85.00 to $82.00 and set an “overweight” rating on the stock in a research report on Tuesday. Berenberg Bank assumed coverage on Rocket Lab in a report on Wednesday, September 2nd. They issued a “buy” rating and a $83.00 price target for the company. Finally, KeyCorp reiterated an “overweight” rating and set a $100.00 price objective on shares of Rocket Lab in a research note on Tuesday. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $99.00.

Rocket Lab Trading Up 5.5%

The stock has a market cap of $39.58 billion, a P/E ratio of -183.75 and a beta of 3.15. 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 price of $62.42 and a 200-day moving average price of $78.68.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings results on Monday, November 9th. The rocket manufacturer reported ($0.12) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.05). Rocket Lab had a negative return on equity of 7.71% and a negative net margin of 25.73%. The company had revenue of $267.83 million during the quarter, compared to the consensus estimate of $257.21 million. On average, equities research analysts expect that Rocket Lab Corporation will post -0.20 EPS for the current year.

Insider Buying and Selling at Rocket Lab

In other news, insider Frank Klein sold 45,692 shares of Rocket Lab stock in a transaction dated 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 approximately $66,934,970.85. The trade was a 4.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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, CFO Adam C. Spice sold 140,157 shares of Rocket Lab stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $70.82, for a total value of $9,925,918.74. Following the completion of the transaction, the chief financial officer directly owned 1,155,967 shares in the company, valued at $81,865,582.94. This trade represents a 10.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 551,832 shares of company stock valued at $34,940,037. 8.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

Hedge funds and other institutional investors have recently modified their holdings of the company. Patron Partners LLC lifted its holdings in Rocket Lab by 17.6% in the 3rd quarter. Patron Partners LLC now owns 3,683 shares of the rocket manufacturer’s stock worth $257,000 after buying an additional 551 shares during the period. Mayflower Financial Advisors LLC boosted its stake in Rocket Lab by 120.6% during the third quarter. Mayflower Financial Advisors LLC now owns 10,251 shares of the rocket manufacturer’s stock worth $714,000 after acquiring an additional 5,605 shares in the last quarter. Advisors Asset Management Inc. purchased a new stake in Rocket Lab in the third quarter worth about $8,803,000. GW&K Investment Management LLC increased its stake in shares of Rocket Lab by 118.3% during the third quarter. GW&K Investment Management LLC now owns 1,159 shares of the rocket manufacturer’s stock valued at $81,000 after purchasing an additional 628 shares in the last quarter. Finally, Greenline Wealth Management LLC increased its stake in shares of Rocket Lab by 51.9% during the third quarter. Greenline Wealth Management LLC now owns 4,886 shares of the rocket manufacturer’s stock valued at $340,000 after purchasing an additional 1,669 shares in the last quarter. 71.78% of the stock is owned by institutional investors.

Rocket Lab Company Profile

Rocket Lab is a space company that provides launch services and spacecraft and satellite systems for commercial, civil, and national security customers. Founded in 2006 by Peter Beck, the company operates internationally, with headquarters in Long Beach, California, and launch operations in New Zealand and the United States. Its launch business centers on Electron, a small orbital rocket designed to carry satellites to space, and HASTE, a suborbital vehicle used for hypersonic test missions. Rocket Lab is also developing Neutron, a larger launch vehicle.