Rocket Lab (NASDAQ:RKLB) Stock Rating Upgraded by Piper Sandler

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

Other equities analysts have also issued research reports about the stock. Citigroup reiterated an “outperform” rating on shares of Rocket Lab in a research report on Tuesday, June 30th. New Street Research began coverage on shares of Rocket Lab in a research note on Wednesday, May 13th. They set a “buy” rating and a $150.00 price target on the stock. Morgan Stanley reaffirmed an “overweight” rating on shares of Rocket Lab in a report on Wednesday, July 8th. KeyCorp upgraded shares of Rocket Lab from a “sector weight” rating to an “overweight” rating and set a $135.00 price objective for the company in a research note on Monday, June 15th. Finally, Bank of America boosted their target price on shares of Rocket Lab from $105.00 to $115.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Rocket Lab presently has a consensus rating of “Moderate Buy” and an average target price of $110.18.

Rocket Lab Stock Down 11.6%

Shares of NASDAQ RKLB opened at $67.35 on Wednesday. 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 stock has a market capitalization of $38.98 billion, a PE ratio of -210.47 and a beta of 2.54. Rocket Lab has a one year low of $37.57 and a one year high of $151.00. The business’s fifty day moving average price is $108.73 and its 200-day moving average price is $87.29.

Rocket Lab (NASDAQ:RKLB) last announced its quarterly earnings data on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share for the quarter, hitting the consensus estimate of ($0.07). Rocket Lab had a negative return on equity of 11.72% and a negative net margin of 26.87%.The company had revenue of $200.35 million during the quarter, compared to analyst estimates of $189.65 million. During the same quarter last year, the firm posted ($0.12) EPS. The firm’s revenue for the quarter was up 63.4% on a year-over-year basis. On average, equities research analysts anticipate that Rocket Lab will post -0.26 EPS for the current year.

Insider Buying and Selling

In other Rocket Lab news, Director Alexander R. Slusky sold 100,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $118.08, for a total value of $11,808,000.00. Following the sale, the director directly owned 434,675 shares in the company, valued at $51,326,424. This represents a 18.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Arjun Kampani sold 88,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $107.98, for a total transaction of $9,502,240.00. Following the completion of the sale, the senior vice president owned 264,705 shares in the company, valued at $28,582,845.90. This represents a 24.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 3,849,294 shares of company stock valued at $362,816,208 in the last three months. Insiders own 8.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RKLB. AQR Capital Management LLC raised its position in shares of Rocket Lab by 114.0% in the first quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer’s stock worth $3,117,000 after buying an additional 92,849 shares in the last quarter. NewEdge Advisors LLC grew its position in 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 buying an additional 34,882 shares in the last quarter. Jones Financial Companies Lllp grew its position 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 buying an additional 5,507 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in 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 acquiring an additional 90,758 shares during the last quarter. Finally, Focus Partners Wealth raised its holdings in shares of Rocket Lab by 1.0% in the 1st quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer’s stock valued at $1,206,000 after acquiring an additional 681 shares in the last quarter. Institutional investors own 71.78% of the company’s stock.

Key Headlines Impacting Rocket Lab

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

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.