Rocket Lab (NASDAQ:RKLB) Rating Increased to Moderate Buy at Raymond James Financial

Raymond James Financial upgraded shares of Rocket Lab (NASDAQ:RKLB) to a moderate buy rating in a report issued on Friday morning,Zacks reports.

A number of other equities research analysts have also recently issued reports on RKLB. Craig Hallum upped their price target on shares of Rocket Lab from $98.00 to $120.00 and gave the company a “buy” rating in a report on Monday, June 29th. Bank of America dropped their price objective on Rocket Lab from $115.00 to $110.00 and set a “buy” rating on the stock in a research note on Monday, August 31st. Piper Sandler began coverage on Rocket Lab in a research note on Wednesday, July 15th. They set a “neutral” rating and a $83.00 target price for the company. Berenberg Bank initiated coverage on Rocket Lab in a report on Wednesday, September 2nd. They issued a “buy” rating and a $83.00 target price on the stock. Finally, Morgan Stanley reaffirmed an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, July 8th. Four investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $107.32.

Rocket Lab Price Performance

Shares of Rocket Lab stock opened at $62.95 on Friday. The company has a current ratio of 5.48, a quick ratio of 4.98 and a debt-to-equity ratio of 0.01. The firm has a fifty day simple moving average of $71.58 and a 200-day simple moving average of $84.45. The stock has a market capitalization of $37.67 billion, a price-to-earnings ratio of -233.14 and a beta of 2.60. Rocket Lab has a 1-year low of $37.57 and a 1-year high of $151.00.

Rocket Lab (NASDAQ:RKLB) last posted its earnings results 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). The firm had revenue of $234.07 million during the quarter, compared to analyst estimates of $231.62 million. Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. On average, sell-side analysts expect that Rocket Lab will post -0.2 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO Agostino Ricupati sold 669 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $69.63, for a total value of $46,582.47. Following the completion of the sale, the chief accounting officer owned 26,863 shares in the company, valued at approximately $1,870,470.69. This trade represents a 2.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Arjun Kampani sold 6,034 shares of Rocket Lab stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $66.65, for a total value of $402,166.10. Following the sale, the senior vice president directly owned 250,917 shares in the company, valued at approximately $16,723,618.05. This trade represents a 2.35% 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. Over the last ninety days, insiders sold 3,624,371 shares of company stock worth $312,944,881. 8.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Rocket Lab

A number of hedge funds have recently modified their holdings of RKLB. Palogic Value Management L.P. bought a new stake in shares of Rocket Lab during the second quarter valued at approximately $1,575,000. Sequoia Financial Advisors LLC increased its holdings in Rocket Lab by 374.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 60,900 shares of the rocket manufacturer’s stock valued at $6,190,000 after buying an additional 48,057 shares during the period. IPG Investment Advisors LLC raised its stake in shares of Rocket Lab by 38.7% in the 2nd quarter. IPG Investment Advisors LLC now owns 9,106 shares of the rocket manufacturer’s stock valued at $926,000 after buying an additional 2,540 shares in the last quarter. National Pension Service lifted its holdings in shares of Rocket Lab by 38.0% during the 2nd quarter. National Pension Service now owns 953,796 shares of the rocket manufacturer’s stock worth $96,953,000 after acquiring an additional 262,410 shares during the period. Finally, WINTON GROUP Ltd acquired a new stake in shares of Rocket Lab during the 2nd quarter valued at about $36,187,000. Institutional investors own 71.78% of the company’s stock.

Key Rocket Lab News

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

• Positive Sentiment: Successful Electron launch supports near-term momentum. Rocket Lab deployed a confidential customer’s Earth-observation satellite into a 500-kilometer orbit. The mission was the company’s 95th Electron launch overall and its 16th this year, highlighting a reliable launch cadence in a capacity-constrained market. Another commercial launch is planned before the end of September. Rocket Lab Successfully Launches 16th Electron Mission
• Positive Sentiment: Analysts see substantial upside potential. Raymond James identified two opportunities with significant upside, while multiple analysts maintain Strong Buy ratings and price targets well above the current trading level. The bullish case is supported by Rocket Lab’s record revenue, expanding backlog, and more than $1 billion in new contracts since the second quarter began. Why Raymond James Is Betting Big on Rocket Lab
• Neutral Sentiment: The investment case depends on Neutron. Commentary argues Rocket Lab’s established launch and space-systems operations could justify taking the risk on its reusable Neutron medium-lift rocket. The company’s core business is improving, but Neutron’s development schedule has not changed, leaving investors focused on execution and potential delays. Rocket Lab’s Core Business Makes the Neutron Gamble Worth Taking
• Negative Sentiment: Recent underperformance reflects company-specific concerns. RKLB declined sharply from mid-June through September 10 despite record revenue and new contracts, substantially underperforming major defense peers. The drop suggests investors remain concerned about Neutron execution, elevated expectations, and the stock’s high-risk valuation. What’s Behind the RKLB Drop?
• Negative Sentiment: Insider selling is a notable overhang. Reported activity showed 97 insider sales and no purchases over the past six months, including substantial sales by CEO Peter Beck and other executives. This may reinforce concerns about valuation even as operating metrics improve.

Rocket Lab Company Profile

Rocket Lab USA, Inc is a space company that provides launch services and space systems for commercial, civil and national security customers. The company develops and operates launch vehicles, spacecraft and satellite components, with activities spanning the design, manufacture and operation of space hardware.

Rocket Lab’s Electron rocket is a small-lift orbital launch vehicle designed to deploy small satellites. The company also develops HASTE, a suborbital test vehicle based on Electron technology, and is developing Neutron, a larger reusable launch vehicle intended to support a broader range of missions.