Rocket Lab Corporation (NASDAQ:RKLB – Get Free Report) rose 2.5% on Tuesday . The stock traded as high as $67.48 and last traded at $65.87. 23,961,565 shares changed hands during trading, an increase of 3% from the average daily volume of 23,240,027 shares. The stock had previously closed at $64.26.
Rocket Lab News Summary
Here are the key news stories impacting Rocket Lab this week:
- Positive Sentiment: A Seeking Alpha article upgraded Rocket Lab, arguing that the recent selloff has created an attractive entry point and that the company’s growth prospects may be underappreciated. Rocket Lab: Time To Pounce (Rating Upgrade)
- Positive Sentiment: Analyst coverage and bullish price targets helped support sentiment across the space sector. Recent commentary cited a Berenberg buy rating with an $83 target, while broader analyst targets remain well above current trading levels. SPCX vs. RKLB – Why Wall Street Is Betting on Rocket Lab
- Positive Sentiment: Rocket Lab benefited from a wider rally in space-related stocks following SpaceX’s public-market debut and new Wall Street coverage, improving investor interest in the sector. Space Stocks Rally on New Coverage
- Positive Sentiment: Investor interest was reinforced by reports that ARK Invest has been adding Rocket Lab shares. The company also reported roughly $234 million in second-quarter revenue, up about 62% year over year, and has a reported $2.36 billion backlog.
- Positive Sentiment: New secure optical-link and software-defined networking contracts could expand Rocket Lab’s role in military satellite communications and create additional growth opportunities. Can Rocket Lab’s SDN Contracts Boost Growth Opportunities?
- Neutral Sentiment: Recent coverage highlights a potential strategic catalyst: Rocket Lab’s planned acquisition of Iridium Communications, expected in 2027, while investors continue to monitor the timeline and execution of the transaction.
- Negative Sentiment: Neutron development reportedly slipped again, with the first launch potentially pushed into 2027. The delay increases execution risk and leaves investors dependent on the existing launch and space-systems businesses in the meantime. Rocket Lab’s Neutron Just Slipped Again
- Negative Sentiment: A recent rocket test failure contributed to the stock’s sharp three-month decline, while extensive insider selling—including sales by senior executives—may weigh on investor confidence. Rocket Lab also remains unprofitable and recently missed consensus earnings estimates.
Analyst Ratings Changes
Several brokerages have weighed in on RKLB. Bank of America dropped their target price on Rocket Lab from $115.00 to $110.00 and set a “buy” rating on the stock in a research report on Monday, August 31st. Stifel Nicolaus set a $132.00 price objective on shares of Rocket Lab in a report on Thursday, June 4th. Needham & Company LLC reiterated a “buy” rating on shares of Rocket Lab in a report on Tuesday, August 11th. Wall Street Zen lowered shares of Rocket Lab from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Roth Capital set a $110.00 price target on shares of Rocket Lab in a report on Tuesday, August 11th. Four research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Rocket Lab has an average rating of “Moderate Buy” and an average target price of $108.83.
Rocket Lab Stock Performance
The company has a quick ratio of 4.98, a current ratio of 5.48 and a debt-to-equity ratio of 0.01. The firm has a 50-day moving average of $74.56 and a 200 day moving average of $84.82. The stock has a market capitalization of $39.41 billion, a P/E ratio of -243.95 and a beta of 2.60.
Rocket Lab (NASDAQ:RKLB – Get Free Report) last issued 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 company had revenue of $234.07 million during the quarter, compared to analyst estimates of $231.62 million. Rocket Lab had a negative return on equity of 6.48% and a negative net margin of 21.51%. Research analysts anticipate that Rocket Lab Corporation will post -0.2 EPS for the current fiscal year.
Insider Buying and Selling at Rocket Lab
In other Rocket Lab news, CEO Peter Beck sold 1,298,622 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $84.92, for a total value of $110,278,980.24. Following the completion of the sale, the chief executive officer owned 2,715,181 shares of the company’s stock, valued at approximately $230,573,170.52. This represents a 32.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Adam C. Spice sold 140,157 shares of Rocket Lab 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 transaction, the chief financial officer owned 1,155,967 shares in the company, valued at approximately $72,398,213.21. This represents a 10.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,624,371 shares of company stock valued at $312,944,881 over the last ninety days. Company insiders own 8.40% of the company’s stock.
Hedge Funds Weigh In On Rocket Lab
A number of large investors have recently modified their holdings of the business. California State Teachers Retirement System grew its position in shares of Rocket Lab by 12,984.2% in the 2nd quarter. California State Teachers Retirement System now owns 96,179,045 shares of the rocket manufacturer’s stock valued at $9,776,600,000 after acquiring an additional 95,443,970 shares during the period. BlackRock Inc. acquired a new position in Rocket Lab in the 2nd quarter valued at $4,124,970,000. Capital World Investors grew its stake in shares of Rocket Lab by 12.0% in the fourth quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock valued at $1,130,172,000 after acquiring an additional 1,738,623 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Rocket Lab during the second quarter worth approximately $245,764,000. Finally, State Street Corp raised its holdings in Rocket Lab by 1.0% in the 4th quarter. State Street Corp now owns 12,520,223 shares of the rocket manufacturer’s stock valued at $873,411,000 after acquiring an additional 120,652 shares in the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.
Rocket Lab Company Profile
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.
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