Rocket Lab (NASDAQ:RKLB) Stock Rating Upgraded by Citigroup

Rocket Lab (NASDAQ:RKLB) was upgraded by stock analysts at Citigroup to a “strong-buy” rating in a research note issued to investors on Thursday, Zacks reports.

Several other equities analysts have also issued reports on the company. Berenberg Bank initiated coverage on Rocket Lab in a research report on Wednesday, September 2nd. They issued a “buy” rating and a $83.00 price objective for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Rocket Lab in a report on Friday, July 17th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $130.00 price target on shares of Rocket Lab in a research note on Tuesday, August 11th. Needham & Company LLC reiterated a “buy” rating on shares of Rocket Lab in a report on Tuesday, August 11th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Rocket Lab in a research report on Monday, September 21st. Five equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $107.20.

Rocket Lab Stock Up 4.9%

NASDAQ:RKLB opened at $73.92 on Thursday. Rocket Lab has a 1 year low of $37.57 and a 1 year high of $151.00. 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 stock has a market cap of $44.23 billion, a price-to-earnings ratio of -273.77 and a beta of 2.93. The stock has a 50-day moving average price of $69.77 and a two-hundred day moving average price of $84.34.

Rocket Lab (NASDAQ:RKLB) last announced its quarterly earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.02). The business had revenue of $234.07 million during the quarter, compared to the consensus estimate of $231.62 million. Rocket Lab had a negative return on equity of 6.48% and a negative net margin of 21.51%. As a group, equities analysts expect that Rocket Lab will post -0.2 earnings per share for the current year.

Insider Activity at Rocket Lab

In other Rocket Lab news, SVP Arjun Kampani sold 7,754 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $69.63, for a total value of $539,911.02. Following the sale, the senior vice president owned 256,951 shares in the company, valued at approximately $17,891,498.13. The trade was a 2.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Adam C. Spice sold 140,157 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $62.63, for a total value of $8,778,032.91. Following the completion of the sale, the chief financial officer owned 1,155,967 shares in the company, valued at $72,398,213.21. The trade was a 10.81% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,676,528 shares of company stock valued at $313,368,560 over the last ninety days. Company insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds have recently made changes to their positions in RKLB. BlackRock Inc. acquired a new position in Rocket Lab during the second quarter worth $4,124,970,000. Bank of New York Mellon Corp bought a new position in Rocket Lab in the second quarter valued at $245,764,000. Bank of America Corp DE acquired a new stake in Rocket Lab in the 2nd quarter valued at $437,280,000. Capital World Investors increased its stake in Rocket Lab by 12.0% in the 4th quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock valued at $1,130,172,000 after buying an additional 1,738,623 shares during the last quarter. Finally, Legal & General Group Plc bought a new stake in Rocket Lab during the 2nd quarter worth about $171,763,000. 71.78% of the stock is owned by institutional investors.

Key Stories Impacting Rocket Lab

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

• Positive Sentiment: Record Synspective contract: Rocket Lab signed a multi-year agreement for 20 Electron launches between 2028 and 2031. The deal lifts Synspective’s total planned missions to 47 and pushes Rocket Lab’s launch backlog above 100 missions, strengthening visibility for future launch revenue. Rocket Lab’s 20-Launch Synspective Deal Pushes Backlog Above 100 Missions
• Positive Sentiment: Wall Street support: Citi initiated coverage with a Buy rating and a $105 price target, calling RKLB a potential “core holding for space bulls.” Other analysts cited in recent coverage see substantial upside, supporting the stock’s rebound. Rocket Lab Stock Rises on Record Electron Launch Deal and Citi Buy Rating
• Positive Sentiment: Institutional buying: Cathie Wood’s ARK Invest ETFs reportedly purchased more than $41 million of Rocket Lab shares across ARKK, ARKQ and ARKX. The buying reflects confidence in Electron, the company’s space-systems business and its planned Neutron rocket. Cathie Wood Is Buying Rocket Lab Again
• Neutral Sentiment: Competitive backdrop: SpaceX’s successful Starship orbital test highlights both the opportunity and the threat for Rocket Lab. Larger, potentially lower-cost rockets could pressure launch economics, increasing the importance of Rocket Lab’s differentiated, dedicated-launch strategy and Neutron’s development.
• Negative Sentiment: Risks remain: The Synspective contract’s financial terms were not disclosed, Rocket Lab remains unprofitable, and its latest reported quarter missed the consensus EPS estimate despite exceeding revenue expectations. Extensive insider selling—including sales by CEO Peter Beck—may also weigh on sentiment and raises valuation concerns after the recent rally.

Rocket Lab Company Profile

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab’s primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.