Rocket Lab (NASDAQ:RKLB) Stock Jumps 6.5% – Time to Buy?

Rocket Lab Corporation (NASDAQ:RKLB) shares were up 6.5% on Tuesday. The company traded as high as $63.77 and last traded at $62.71. Approximately 31,817,251 shares traded hands during mid-day trading, an increase of 40% from the average daily volume of 22,797,947 shares. The stock had previously closed at $58.86.

Rocket Lab News Summary

Here’s some of the latest news about RKLB:

• Positive Sentiment: Berenberg raised its price target to $85 from $83 and maintained a Buy rating. Rocket Lab also reported that its ESCAPADE spacecraft completed precise Mars-bound maneuvers, demonstrating deep-space navigation and mission-operation capabilities. Berenberg Raises Rocket Lab Price Target ESCAPADE Mission Update
• Neutral Sentiment: Rocket Lab’s shares have rebounded sharply even as several firms lowered price targets. Some analysts still see substantial upside, reflecting the tug-of-war between the company’s growth prospects and execution risks. Rocket Lab Rebound and Price-Target Cuts
• Negative Sentiment: Rocket Lab’s latest quarter featured a wider-than-expected loss: EPS was -$0.12 versus analysts’ expected -$0.07. Although revenue rose 73% year over year and backlog reached a record $3.57 billion, Neutron’s first launch has been delayed to 2027, extending execution and profitability concerns. Q3 Earnings and Neutron Delays

Analyst Ratings Changes

Several brokerages have recently commented on RKLB. Barclays decreased their price objective on shares of Rocket Lab from $85.00 to $82.00 and set an “overweight” rating on the stock in a research report on Tuesday. Berenberg Bank set a $85.00 price target on Rocket Lab in a report on Thursday. Morgan Stanley lowered their price objective on Rocket Lab from $105.00 to $103.00 and set an “overweight” rating on the stock in a research report on Wednesday. Bank of America dropped their price objective on Rocket Lab from $115.00 to $110.00 and set a “buy” rating for the company in a research note on Monday, August 31st. Finally, Wall Street Zen cut Rocket Lab from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Rocket Lab has a consensus rating of “Moderate Buy” and a consensus price target of $99.10.

Rocket Lab Stock Down 3.1%

The stock has a market capitalization of $38.34 billion, a P/E ratio of -177.97 and a beta of 3.15. The company has a fifty day moving average price of $62.49 and a 200-day moving average price of $78.56.

Rocket Lab (NASDAQ:RKLB) last announced 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 net margin of 25.73% and a negative return on equity of 5.79%. The firm had revenue of $267.83 million for the quarter, compared to the consensus estimate of $257.21 million. As a group, research analysts expect that Rocket Lab Corporation will post -0.20 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Adam Spice sold 140,157 shares of Rocket Lab stock in a transaction dated 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 owned 1,155,967 shares in the company, valued at approximately $81,865,582.94. This trade represents a 10.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nina Armagno sold 10,926 shares of the business’s stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $52.78, for a total value of $576,674.28. Following the sale, the director directly owned 100,496 shares in the company, valued at $5,304,178.88. The trade was a 9.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 551,832 shares of company stock valued at $34,940,037 in the last quarter. 8.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rocket Lab

A number of institutional investors and hedge funds have recently modified their holdings of RKLB. BlackRock Inc. purchased a new position in Rocket Lab during the second quarter worth $4,124,970,000. Bank of New York Mellon Corp bought a new stake in shares of Rocket Lab in the 2nd quarter worth about $245,764,000. Bank of America Corp DE purchased a new position in shares of Rocket Lab during the 2nd quarter worth about $437,280,000. Voya Investment Management LLC grew its holdings in Rocket Lab by 26.3% during the 3rd quarter. Voya Investment Management LLC now owns 3,003,656 shares of the rocket manufacturer’s stock valued at $209,295,000 after purchasing an additional 625,289 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Rocket Lab by 14.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,737,451 shares of the rocket manufacturer’s stock valued at $278,262,000 after purchasing an additional 352,094 shares during the last quarter. Hedge funds and other institutional investors own 71.78% of the company’s stock.

About Rocket Lab

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.