Rocket Lab (NASDAQ:RKLB) Shares Up 1.6% – What’s Next?

Rocket Lab Corporation (NASDAQ:RKLB)’s share price was up 1.6% on Tuesday . The stock traded as high as $65.72 and last traded at $63.55. Approximately 20,236,536 shares traded hands during mid-day trading, a decline of 13% from the average session volume of 23,146,479 shares. The stock had previously closed at $62.55.

Trending Headlines about Rocket Lab

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

• Positive Sentiment: Acquisition financing is now secured. Rocket Lab completed a $1.944 billion at-the-market stock offering, issuing approximately 29.3 million shares. Combined with existing liquidity and Iridium’s debt, the proceeds are intended to cover the cash consideration and related transaction costs. Rocket Lab Fully Funds Iridium Acquisition
• Positive Sentiment: Rocket Lab eliminated a major financing risk. The company terminated its previously arranged $3.6 billion senior secured bridge facility, while Iridium amended its existing $1.775 billion term-loan facility to permit the change of control. Management characterized the revised structure as lower-cost, permanent financing supported by Iridium’s free cash flow. Rocket Lab Secures Funding for Iridium Buyout
• Positive Sentiment: The deal could substantially expand Rocket Lab’s business. The company expects Iridium to roughly double its size, strengthening its satellite-services exposure and adding a cash-generative communications business. The financing announcement helped ease concerns that the acquisition might not be fully funded. Rocket Lab Raises Funds for Iridium Acquisition

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. KeyCorp reiterated an “overweight” rating on shares of Rocket Lab in a research note on Tuesday, August 11th. Needham & Company LLC reissued a “buy” rating on shares of Rocket Lab in a research note on Tuesday, August 11th. Craig Hallum raised their price target on Rocket Lab from $98.00 to $120.00 and gave the company a “buy” rating in a report on Monday, June 29th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $130.00 price target on shares of Rocket Lab in a research report on Tuesday, August 11th. Finally, Stifel Nicolaus set a $132.00 price target on shares of Rocket Lab in a research note on Thursday, June 4th. Four research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $107.32.

Rocket Lab Trading Up 1.6%

The firm has a 50 day simple moving average of $70.97 and a 200 day simple moving average of $84.50. 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 market capitalization of $38.03 billion, a PE ratio of -235.36 and a beta of 2.60.

Rocket Lab (NASDAQ:RKLB) last posted its quarterly earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing the consensus estimate 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 analysts’ expectations of $231.62 million. Equities analysts expect that Rocket Lab Corporation will post -0.2 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rocket Lab news, CFO Adam Spice sold 140,157 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $62.63, for a total value of $8,778,032.91. Following the completion of the transaction, the chief financial officer owned 1,155,967 shares of the company’s stock, valued at approximately $72,398,213.21. The trade was a 10.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Agostino Ricupati sold 669 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $69.63, for a total transaction of $46,582.47. Following the transaction, the chief accounting officer owned 26,863 shares in the company, valued at $1,870,470.69. This represents a 2.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 3,624,371 shares of company stock worth $312,944,881 in the last three months. 8.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Gordian Capital Singapore Pte Ltd bought a new stake in Rocket Lab in the 4th quarter worth approximately $29,000. Reflection Asset Management bought a new position in shares of Rocket Lab during the 4th quarter valued at $30,000. Meeder Asset Management Inc. bought a new position in shares of Rocket Lab during the 2nd quarter valued at $30,000. Highland Investment Advisors LLC purchased a new position in shares of Rocket Lab in the 2nd quarter worth $30,000. Finally, NBH Bank purchased a new position in shares of Rocket Lab in the 2nd quarter worth $30,000. 71.78% of the stock is owned by hedge funds and other institutional investors.

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.