Rocket Lab (NASDAQ:RKLB) Trading 1.1% Higher Following Analyst Upgrade
by Sarita Garza · The Markets DailyRocket Lab Corporation (NASDAQ:RKLB – Get Free Report)’s stock price rose 1.1% on Thursday after Berenberg Bank upgraded the stock to a strong-buy rating. The company traded as high as $64.90 and last traded at $63.81. 18,596,813 shares traded hands during trading, a decline of 20% from the average session volume of 23,305,494 shares. The stock had previously closed at $63.10.
RKLB has been the topic of a number of other research reports. Bank of America cut their price objective on Rocket Lab from $115.00 to $110.00 and set a “buy” rating on the stock in a research report on Monday, August 31st. Roth Capital set a $110.00 price objective on shares of Rocket Lab in a research report on Tuesday, August 11th. New Street Research assumed coverage on Rocket Lab in a report on Wednesday, May 13th. They issued a “buy” rating and a $150.00 target price for the company. KeyCorp reiterated an “overweight” rating on shares of Rocket Lab in a research note on Tuesday, August 11th. Finally, Wall Street Zen downgraded Rocket Lab from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Four equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $108.83.
Check Out Our Latest Stock Report on RKLB
Insider Activity at Rocket Lab
In related news, CEO Peter Beck sold 1,298,622 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $84.92, for a total transaction of $110,278,980.24. Following the transaction, the chief executive officer directly owned 2,715,181 shares in the company, valued at approximately $230,573,170.52. This represents a 32.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Arjun Kampani sold 88,000 shares of Rocket Lab stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $107.98, for a total transaction of $9,502,240.00. Following the completion of the transaction, the senior vice president owned 264,705 shares in the company, valued at approximately $28,582,845.90. This trade represents a 24.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 3,624,371 shares of company stock worth $312,944,881. Company insiders own 8.40% of the company’s stock.
Rocket Lab News Summary
Here are the key news stories impacting Rocket Lab this week:
- Positive Sentiment: Berenberg upgraded Rocket Lab to “strong buy.” The bank cited the expanding space economy and the company’s growth prospects, helping improve sentiment after the stock’s sharp recent decline. Why Is RKLB Stock Rising Today and How Much Upside Do Analysts See?
- Positive Sentiment: ARK Invest purchased 705,102 Rocket Lab shares across two trading sessions, according to fund disclosures. Cathie Wood’s buying may be viewed as validation of Rocket Lab’s long-term potential and could attract additional momentum-oriented investors. Cathie Wood Just Bought 705,102 Shares of a Rocket Company 50 Times Smaller Than SpaceX
- Positive Sentiment: Rocket Lab’s commercial base remains substantial. Articles highlighted nearly $2.4 billion in launch backlog, a new major launch contract and the company’s 94th successful launch, including a perfect record on Synspective missions and 16 additional missions booked through 2030. Rocket Lab Scores 94th Launch Win
- Neutral Sentiment: Neutron remains the central investment catalyst. The reusable medium-lift rocket could significantly expand Rocket Lab’s addressable market, but reports suggest its first launch could slip into 2027. The delay would give the company more time for testing but postpone a potentially transformative revenue opportunity. Peter Beck’s Neutron Rocket Could Slip to 2027
- Negative Sentiment: Investors remain concerned about valuation and cash use. Rocket Lab has fallen roughly 49% over three months, while spending ahead of Neutron’s debut. The company remains unprofitable, and its high valuation leaves limited room for execution setbacks. How Long Can Rocket Lab Stock Wait on Neutron?
- Negative Sentiment: Competitive and governance concerns persist. Blue Origin’s win of NASA’s $700 million Mars communications contract highlights intense competition, while a reported $8.8 million CFO share sale and prior analyst skepticism add to investor caution.
Institutional Trading of Rocket Lab
Several large investors have recently modified their holdings of RKLB. AQR Capital Management LLC grew its stake in Rocket Lab by 114.0% during the 1st quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer’s stock valued at $3,117,000 after purchasing an additional 92,849 shares in the last quarter. NewEdge Advisors LLC raised its holdings in shares of Rocket Lab by 1,812.1% during the first quarter. NewEdge Advisors LLC now owns 36,807 shares of the rocket manufacturer’s stock worth $658,000 after purchasing an additional 34,882 shares during the period. Jones Financial Companies Lllp raised its stake in Rocket Lab by 53.8% during the first quarter. Jones Financial Companies Lllp now owns 15,745 shares of the rocket manufacturer’s stock worth $282,000 after acquiring an additional 5,507 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Rocket Lab by 13.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 773,548 shares of the rocket manufacturer’s stock worth $13,831,000 after purchasing an additional 90,758 shares during the last quarter. Finally, Focus Partners Wealth lifted its stake in Rocket Lab by 1.0% in the first quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer’s stock valued at $1,206,000 after buying an additional 681 shares during the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.
Rocket Lab Stock Performance
The company’s 50-day moving average is $75.23 and its two-hundred day moving average is $84.74. The stock has a market capitalization of $38.45 billion, a P/E ratio of -237.99 and a beta of 2.60. The company has a current ratio of 5.48, a quick ratio of 4.98 and a debt-to-equity ratio of 0.01.
Rocket Lab (NASDAQ:RKLB – Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 the consensus estimate of $231.62 million. As a group, sell-side analysts anticipate that Rocket Lab Corporation will post -0.2 EPS for the current fiscal year.
About Rocket Lab
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.