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

Shares of Rocket Lab Corporation (NASDAQ:RKLB) gapped up before the market opened on Tuesday . The stock had previously closed at $70.12, but opened at $73.03. Rocket Lab shares last traded at $70.7040, with a volume of 10,341,287 shares trading hands.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Robert W. Baird assumed coverage on shares of Rocket Lab in a research note on Wednesday, October 15th. They set an “outperform” rating and a $83.00 price objective on the stock. Morgan Stanley dropped their price target on Rocket Lab from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Wednesday, November 12th. Stifel Nicolaus boosted their price objective on Rocket Lab from $75.00 to $85.00 and gave the company a “buy” rating in a research report on Monday, December 22nd. Wall Street Zen downgraded Rocket Lab from a “hold” rating to a “sell” rating in a research note on Saturday, December 13th. Finally, Needham & Company LLC raised their target price on Rocket Lab from $63.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday, December 23rd. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $61.25.

Rocket Lab Stock Up 5.5%

The firm’s fifty day moving average is $55.41 and its two-hundred day moving average is $49.32. The firm has a market cap of $39.50 billion, a price-to-earnings ratio of -195.24 and a beta of 2.20. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.18 and a quick ratio of 2.83.

Rocket Lab (NASDAQ:RKLB) last released its quarterly earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.02. The company had revenue of $155.08 million for the quarter, compared to the consensus estimate of $152.45 million. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. Rocket Lab’s revenue was up 48.0% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.10) EPS. On average, sell-side analysts expect that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling at Rocket Lab

In related news, CEO Peter Beck sold 939,746 shares of Rocket Lab stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $54.73, for a total value of $51,432,298.58. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Nina Armagno sold 27,314 shares of the company’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $68.21, for a total transaction of $1,863,087.94. Following the sale, the director directly owned 108,940 shares of the company’s stock, valued at $7,430,797.40. This represents a 20.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 2,729,485 shares of company stock worth $151,832,870. 11.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Rocket Lab

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wilmington Savings Fund Society FSB acquired a new stake in shares of Rocket Lab in the third quarter worth $25,000. Hara Capital LLC purchased a new stake in shares of Rocket Lab during the third quarter worth $25,000. UMB Bank n.a. grew its stake in shares of Rocket Lab by 352.5% in the 3rd quarter. UMB Bank n.a. now owns 543 shares of the rocket manufacturer’s stock valued at $26,000 after buying an additional 423 shares in the last quarter. Sound Income Strategies LLC bought a new position in Rocket Lab during the third quarter valued at approximately $27,000. Finally, Financial Consulate Inc. acquired a new stake in Rocket Lab in the third quarter valued at approximately $35,000. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

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.