Rocket Lab (NASDAQ:RKLB) Earns “Buy” Rating from TD Cowen

Rocket Lab (NASDAQ:RKLB)‘s stock had its “buy” rating reaffirmed by equities researchers at TD Cowen in a report released on Thursday, Benzinga reports. They currently have a $90.00 price objective on the rocket manufacturer’s stock. TD Cowen’s price objective would suggest a potential upside of 77.03% from the stock’s current price.

A number of other brokerages have also issued reports on RKLB. Morgan Stanley restated an “overweight” rating on shares of Rocket Lab in a research note on Wednesday, July 8th. Citigroup started coverage on shares of Rocket Lab in a research note on Thursday, October 1st. They set a “buy” rating and a $105.00 price objective for the company. Cantor Fitzgerald reissued a “mixed” rating and set a $122.00 price objective on shares of Rocket Lab in a report on Thursday. Wall Street Zen downgraded Rocket Lab from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Barclays started coverage on Rocket Lab in a research note on Friday, October 9th. They issued an “overweight” rating and a $85.00 target price for the company. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Rocket Lab has a consensus rating of “Moderate Buy” and a consensus price target of $102.05.

Rocket Lab Stock Down 8.0%

Shares of NASDAQ:RKLB traded down $4.41 during trading hours on Thursday, hitting $50.84. The company’s stock had a trading volume of 23,838,969 shares, compared to its average volume of 23,101,795. The firm’s fifty day moving average price is $69.50 and its 200 day moving average price is $84.29. Rocket Lab has a 52 week low of $37.57 and a 52 week high of $151.00. The company has a market capitalization of $30.42 billion, a price-to-earnings ratio of -188.29 and a beta of 2.93. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.48 and a quick ratio of 4.98.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings data on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02). Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. The company had revenue of $234.07 million for the quarter, compared to the consensus estimate of $231.62 million. As a group, research analysts expect that Rocket Lab will post -0.20 EPS for the current year.

Insider Activity

In related news, SVP Arjun Kampani sold 6,034 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $66.65, for a total value of $402,166.10. Following the completion of the transaction, the senior vice president directly owned 250,917 shares of the company’s stock, valued at approximately $16,723,618.05. This represents a 2.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Adam Spice sold 140,157 shares of the firm’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $70.82, for a total value of $9,925,918.74. Following the completion of the transaction, the chief financial officer owned 1,155,967 shares in the company, valued at $81,865,582.94. 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 400,749 shares of company stock valued at $26,964,474 in the last three months. Company insiders own 8.40% of the company’s stock.

Institutional Trading of Rocket Lab

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Rocket Lab in the second quarter worth approximately $4,124,970,000. Bank of New York Mellon Corp purchased a new position in Rocket Lab during the 2nd quarter valued at about $245,764,000. Bank of America Corp DE purchased a new position in shares of Rocket Lab in the second quarter valued at approximately $437,280,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Rocket Lab by 14.8% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,737,451 shares of the rocket manufacturer’s stock valued at $278,262,000 after buying an additional 352,094 shares during the period. Finally, Amundi grew its stake in Rocket Lab by 22.2% during the 2nd quarter. Amundi now owns 2,180,748 shares of the rocket manufacturer’s stock worth $221,673,000 after purchasing an additional 396,639 shares in the last quarter. Hedge funds and other 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: Rocket Lab continues to benefit from strong existing operations, including its Electron launch business, satellite systems activities and defense contracts. The company reported record second-quarter revenue of approximately $234 million, up 62% year over year, and maintains a backlog of roughly $2.36 billion. Rocket Lab Still Has a $2.4B Backlog While Neutron Waits
• Positive Sentiment: Despite reducing estimates, several analysts remain bullish. Citizens JMP lowered its target to $90 from $130 but retained a Market Outperform rating; TD Cowen maintained a Buy rating and $90 target, while Cantor Fitzgerald and Roth Capital also remained constructive. Rocket Lab analyst coverage
• Neutral Sentiment: Management said the manufacturing issue has been addressed and that additional testing is expected before a launch date is finalized. The company is prioritizing reliability and quality, but investors must now wait longer for evidence that Neutron can expand Rocket Lab into the larger medium-lift launch market. Rocket Lab discusses Neutron program update and manufacturing challenges
• Negative Sentiment: The delay is especially damaging because Neutron is central to Rocket Lab’s growth and planned path toward adjusted EBITDA profitability. Repeated schedule slips are increasing execution concerns, extending cash-burn risk and postponing potential launch revenue. Rocket Lab pushes Neutron rocket debut flight to 2027
• Negative Sentiment: Technical momentum has also weakened after the sell-off pushed RKLB below the closely watched $60 support level and below its major moving averages. Although Wall Street’s consensus remains broadly positive, lower price targets and renewed skepticism have added pressure to the stock.

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.