Rocket Lab (NASDAQ:RKLB) Trading Up 7.7% – Should You Buy?

by · The Cerbat Gem

Rocket Lab Corporation (NASDAQ:RKLB – Get Free Report)’s stock price rose 7.7% during trading on Wednesday . The company traded as high as $58.83 and last traded at $57.52. Approximately 36,405,788 shares traded hands during trading, an increase of 77% from the average daily volume of 20,607,418 shares. The stock had previously closed at $53.43.

Analyst Ratings Changes

RKLB has been the subject of a number of analyst reports. Wall Street Zen raised Rocket Lab from a “strong sell” rating to a “hold” rating in a report on Saturday, November 15th. Baird R W raised Rocket Lab to a “strong-buy” rating in a research note on Thursday, October 16th. Bank of America increased their target price on Rocket Lab from $50.00 to $60.00 and gave the company a “buy” rating in a research report on Wednesday, November 19th. Roth Capital reissued a “buy” rating and issued a $75.00 price target on shares of Rocket Lab in a report on Tuesday, November 11th. Finally, Robert W. Baird initiated coverage on shares of Rocket Lab in a research report on Wednesday, October 15th. They set an “outperform” rating and a $83.00 price objective for the company. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $58.17.

Check Out Our Latest Report on Rocket Lab

Rocket Lab Price Performance

The company has a debt-to-equity ratio of 0.32, a current ratio of 3.18 and a quick ratio of 2.83. The stock has a 50 day simple moving average of $54.40 and a two-hundred day simple moving average of $45.50. The company has a market cap of $30.72 billion, a price-to-earnings ratio of -151.37 and a beta of 2.20.

Rocket Lab (NASDAQ:RKLB – Get Free Report) last posted its quarterly earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.02. Rocket Lab had a negative return on equity of 27.26% and a negative net margin of 35.64%.The business had revenue of $155.08 million for the quarter, compared to analyst estimates of $152.45 million. During the same quarter in the previous year, the firm earned ($0.10) EPS. The company’s quarterly revenue was up 48.0% compared to the same quarter last year. On average, equities research analysts predict that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Peter Beck sold 1,436,442 shares of the stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $48.75, for a total value of $70,026,547.50. Following the completion of the sale, the chief executive officer owned 2,500,000 shares of the company’s stock, valued at $121,875,000. This represents a 36.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Arjun Kampani sold 31,185 shares of Rocket Lab stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $48.97, for a total transaction of $1,527,129.45. Following the sale, the senior vice president directly owned 499,045 shares in the company, valued at approximately $24,438,233.65. The trade was a 5.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 5,583,532 shares of company stock worth $274,781,358 over the last ninety days. 11.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rocket Lab

Several large investors have recently modified their holdings of RKLB. Wilmington Savings Fund Society FSB acquired a new position in Rocket Lab in the third quarter valued at about $25,000. Hara Capital LLC purchased a new stake in shares of Rocket Lab in the 3rd quarter valued at approximately $25,000. UMB Bank n.a. lifted its holdings in shares of Rocket Lab by 352.5% in the 3rd quarter. UMB Bank n.a. now owns 543 shares of the rocket manufacturer’s stock worth $26,000 after acquiring an additional 423 shares during the last quarter. Sound Income Strategies LLC acquired a new position in shares of Rocket Lab in the 3rd quarter worth approximately $27,000. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Rocket Lab by 109.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer’s stock worth $28,000 after purchasing an additional 416 shares during the period. Institutional investors and hedge funds own 71.78% of the company’s stock.

Rocket Lab Company Profile

(Get Free Report)

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.

See Also