Traders Purchase High Volume of Call Options on Rocket Lab (NASDAQ:RKLB)

Rocket Lab Corporation (NASDAQ:RKLB) was the target of unusually large options trading on Friday. Stock investors purchased 192,583 call options on the stock. This is an increase of 45% compared to the typical daily volume of 132,734 call options.

Rocket Lab Price Performance

RKLB opened at $56.16 on Friday. The business has a fifty day moving average of $46.61 and a 200 day moving average of $34.09. The stock has a market cap of $27.18 billion, a P/E ratio of -124.80 and a beta of 2.14. The company has a quick ratio of 2.33, a current ratio of 2.67 and a debt-to-equity ratio of 0.60. Rocket Lab has a 52-week low of $8.99 and a 52-week high of $56.94.

Rocket Lab (NASDAQ:RKLB) last released its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.06). The business had revenue of $144.50 million during the quarter, compared to analysts’ expectations of $135.42 million. Rocket Lab had a negative return on equity of 48.14% and a negative net margin of 45.87%.The business’s revenue for the quarter was up 35.9% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.08) EPS. Rocket Lab has set its Q3 2025 guidance at EPS. As a group, sell-side analysts anticipate that Rocket Lab will post -0.38 EPS for the current year.

Insider Activity

In related news, SVP Arjun Kampani sold 31,185 shares of the firm’s stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $48.97, for a total value of $1,527,129.45. Following the completion of the transaction, the senior vice president directly owned 499,045 shares of the company’s stock, valued at approximately $24,438,233.65. This trade represents a 5.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Peter Beck sold 1,436,442 shares of the business’s stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $48.75, for a total transaction of $70,026,547.50. Following the completion of the sale, the chief executive officer owned 2,500,000 shares in the company, valued at $121,875,000. This represents a 36.49% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 5,406,361 shares of company stock worth $267,483,973. 11.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

A number of institutional investors have recently modified their holdings of the stock. Versant Capital Management Inc boosted its holdings in shares of Rocket Lab by 118.1% in the first quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer’s stock valued at $28,000 after purchasing an additional 860 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Rocket Lab by 3,319.2% in the 1st quarter. GAMMA Investing LLC now owns 19,900 shares of the rocket manufacturer’s stock worth $356,000 after buying an additional 19,318 shares during the period. Rhumbline Advisers grew its position in shares of Rocket Lab by 9.6% during the 1st quarter. Rhumbline Advisers now owns 525,018 shares of the rocket manufacturer’s stock worth $9,387,000 after buying an additional 45,889 shares in the last quarter. Fulton Bank N.A. bought a new position in shares of Rocket Lab during the 1st quarter worth $193,000. Finally, Hennion & Walsh Asset Management Inc. increased its stake in shares of Rocket Lab by 3.9% during the first quarter. Hennion & Walsh Asset Management Inc. now owns 95,421 shares of the rocket manufacturer’s stock valued at $1,706,000 after buying an additional 3,549 shares during the period. 71.78% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages recently commented on RKLB. Bank of America increased their price target on shares of Rocket Lab from $30.00 to $50.00 and gave the company a “buy” rating in a report on Wednesday, July 16th. Cantor Fitzgerald boosted their price objective on Rocket Lab from $35.00 to $54.00 and gave the stock an “overweight” rating in a research note on Friday, August 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rocket Lab in a research note on Saturday, September 27th. Needham & Company LLC reiterated a “buy” rating and issued a $55.00 target price on shares of Rocket Lab in a report on Wednesday, September 3rd. Finally, Roth Capital restated a “buy” rating on shares of Rocket Lab in a report on Friday, August 29th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $42.27.

About Rocket Lab

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.