Rocket Lab (NASDAQ:RKLB) Cut to Hold at Zacks Research

Zacks Research cut shares of Rocket Lab (NASDAQ:RKLB) from a strong-buy rating to a hold rating in a research report released on Tuesday morning,Zacks.com reports.

A number of other research analysts also recently weighed in on the company. Needham & Company LLC increased their price target on Rocket Lab from $63.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday, December 23rd. Stifel Nicolaus boosted their price objective on shares of Rocket Lab from $75.00 to $85.00 and gave the company a “buy” rating in a report on Monday, December 22nd. Cantor Fitzgerald restated an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, December 3rd. The Goldman Sachs Group increased their price target on Rocket Lab from $47.00 to $69.00 and gave the stock a “neutral” rating in a report on Tuesday, January 20th. Finally, Robert W. Baird upgraded Rocket Lab to a “strong-buy” rating in a research report on Thursday, October 16th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Rocket Lab has an average rating of “Moderate Buy” and a consensus target price of $72.92.

Rocket Lab Stock Performance

Shares of Rocket Lab stock opened at $66.01 on Tuesday. The firm has a market cap of $35.26 billion, a P/E ratio of -173.71 and a beta of 2.16. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.18 and a quick ratio of 2.83. The firm has a 50 day simple moving average of $75.17 and a 200 day simple moving average of $59.02. Rocket Lab has a fifty-two week low of $14.71 and a fifty-two week high of $99.58.

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

Insider Buying and Selling at Rocket Lab

In related news, Director Merline Saintil sold 96,000 shares of the company’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $86.58, for a total transaction of $8,311,680.00. Following the sale, the director owned 292,529 shares in the company, valued at approximately $25,327,160.82. This represents a 24.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Peter Beck sold 1,560,254 shares of the business’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $57.47, for a total value of $89,667,797.38. Following the transaction, the chief executive officer directly owned 939,746 shares in the company, valued at $54,007,202.62. This trade represents a 62.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,306,150 shares of company stock valued at $271,865,732 in the last three months. 11.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC lifted its stake in Rocket Lab by 114.0% in the first quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer’s stock valued at $3,117,000 after acquiring an additional 92,849 shares during the last quarter. NewEdge Advisors LLC raised its stake in Rocket Lab by 1,812.1% in the 1st quarter. NewEdge Advisors LLC now owns 36,807 shares of the rocket manufacturer’s stock valued at $658,000 after acquiring an additional 34,882 shares during the period. Jones Financial Companies Lllp lifted its holdings in Rocket Lab by 53.8% during the 1st quarter. Jones Financial Companies Lllp now owns 15,745 shares of the rocket manufacturer’s stock valued at $282,000 after purchasing an additional 5,507 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Rocket Lab by 13.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 773,548 shares of the rocket manufacturer’s stock worth $13,831,000 after purchasing an additional 90,758 shares during the period. Finally, Focus Partners Wealth boosted its position in Rocket Lab by 1.0% during the first quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer’s stock worth $1,206,000 after purchasing an additional 681 shares during the period. 71.78% of the stock is owned by institutional investors.

Rocket Lab News Summary

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

• Positive Sentiment: Won defense hypersonic test mission — Rocket Lab announced a dedicated HASTE hypersonic test mission (Cassowary Vex) for the Defense Innovation Unit, reinforcing government demand for its launch vehicles and space systems and supporting near-term revenue/contract visibility. Read More.
• Positive Sentiment: Analyst bull case highlights large defense award and execution — Coverage noting strong fundamentals cites a major ~$816M U.S. Space Force contract, high Electron launch cadence and improving revenue/EPS trajectory as catalysts for further upside. These items support the long-term growth story. Read More.
• Neutral Sentiment: Investor-read articles and stock outlook pieces are prompting debate over valuation and momentum; some call for reassessment after recent volatility while others map 12‑month scenarios — useful context but not immediate catalysts. Read More.
• Neutral Sentiment: General market commentary and rebound coverage may moderate swings but are unlikely to change fundamentals quickly. Read More.
• Negative Sentiment: Space-sector contagion from a peer capital raise pressured peers — a sell-off in the space group after AST SpaceMobile’s raise knocked sentiment across small- and mid-cap space stocks, pulling RKLB down with the sector. Read More.
• Negative Sentiment: Analyst downgrade — Zacks cut the rating from strong-buy to hold, reducing conviction among some retail/quant investors and likely weighing on near-term flows. Read More.
• Negative Sentiment: Neutron program concerns and recent volatility — coverage questioning whether a Neutron “hiccup” is an overreaction or a red flag has amplified selling pressure and investor caution around execution risk for the larger, next‑generation vehicle. Read More.

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.