Piper Sandler Upgrades Rocket Lab (NASDAQ:RKLB) to “Hold”

Rocket Lab (NASDAQ:RKLB) was upgraded by equities research analysts at Piper Sandler to a “hold” rating in a research note issued on Wednesday,Zacks.com reports.

A number of other equities research analysts have also recently issued reports on RKLB. New Street Research assumed coverage on Rocket Lab in a research note on Wednesday, May 13th. They set a “buy” rating and a $150.00 price objective on the stock. Needham & Company LLC reissued a “buy” rating and issued a $120.00 target price on shares of Rocket Lab in a research note on Tuesday, June 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Rocket Lab in a report on Tuesday, April 21st. Clear Str raised shares of Rocket Lab to a “strong-buy” rating in a research report on Wednesday, March 18th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and issued a $96.00 price target on shares of Rocket Lab in a research note on Tuesday, June 30th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $110.18.

Rocket Lab Price Performance

Shares of NASDAQ RKLB opened at $67.35 on Wednesday. Rocket Lab has a fifty-two week low of $37.57 and a fifty-two week high of $151.00. The stock has a market capitalization of $38.98 billion, a price-to-earnings ratio of -210.47 and a beta of 2.54. The company has a debt-to-equity ratio of 0.02, a current ratio of 4.47 and a quick ratio of 4.02. The business has a 50-day moving average of $108.73 and a 200-day moving average of $87.29.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, meeting the consensus estimate of ($0.07). The firm had revenue of $200.35 million during the quarter, compared to analysts’ expectations of $189.65 million. Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The business’s quarterly revenue was up 63.4% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.12) earnings per share. As a group, sell-side analysts predict that Rocket Lab will post -0.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Marvin Bradford Clevenger sold 3,500 shares of Rocket Lab stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $146.67, for a total transaction of $513,345.00. Following the completion of the transaction, the insider directly owned 473,975 shares in the company, valued at approximately $69,517,913.25. The trade was a 0.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Peter Beck sold 990,960 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $82.86, for a total value of $82,110,945.60. Following the transaction, the chief executive officer directly owned 1,724,221 shares in the company, valued at $142,868,952.06. The trade was a 36.50% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 3,849,294 shares of company stock valued at $362,816,208. Insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of Rocket Lab by 13.4% in the fourth quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock valued at $3,308,033,000 after purchasing an additional 5,610,469 shares during the period. Baillie Gifford & Co. boosted its holdings in shares of Rocket Lab by 47.2% during the 4th quarter. Baillie Gifford & Co. now owns 17,851,446 shares of the rocket manufacturer’s stock worth $1,245,317,000 after buying an additional 5,725,536 shares during the period. Capital World Investors boosted its holdings in shares of Rocket Lab by 12.0% during the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock worth $1,130,172,000 after buying an additional 1,738,623 shares during the period. State Street Corp grew its stake 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 valued at $873,411,000 after buying an additional 120,652 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake 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 valued at $626,605,000 after buying an additional 825,158 shares during the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Rocket Lab News Roundup

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

• Positive Sentiment: Rocket Lab continues to report strong business momentum, including rapid revenue growth, a large backlog, and progress toward becoming an end-to-end space company. The company is also building out launch infrastructure and expanding its defense-related opportunity set, including potential upside from the Space Force’s NSSL launch program if Neutron succeeds. Article Title
• Positive Sentiment: Analysts have pointed to Rocket Lab’s recent acquisitions and growing position in the space industry as reasons for long-term optimism, with some still maintaining bullish views despite the selloff. Article Title
• Neutral Sentiment: Several articles are comparing Rocket Lab with peers like AST SpaceMobile and SpaceX, reinforcing that RKLB remains a high-profile name in a speculative sector, but not providing a major new company-specific catalyst. Article Title
• Negative Sentiment: Piper Sandler initiated coverage with a Neutral rating and an $83 price target, which disappointed some investors and added to pressure on the shares. Article Title
• Negative Sentiment: Investors are also reacting to concerns about dilution, a recent CEO share sale, and the stock’s stretched valuation after a huge run earlier in the year. Several commentaries now argue that space stocks, including Rocket Lab, may be too speculative at current levels. Article Title

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.