Rocket Lab USA (NASDAQ:RKLB) Shares Up 1.6% - Should You Buy?

Rocket Lab USA, Inc. (NASDAQ:RKLB) saw an increase of 1.6% in trading on Tuesday, closing at $18.18 after peaking at $18.00. The stock experienced a noticeable decrease in trading volume, with around 4,047,943 shares exchanged, which is significantly lower—by 78%—compared to its average daily volume of 18,633,773 shares. Prior to the trading day, the stock had finished at $17.88.

Analysts Set New Price Targets

A number of analysts have recently revised their price projections for Rocket Lab USA. Stifel Nicolaus raised their target from $26.00 to $31.00, maintaining a "buy" rating in a report dated January 8th. Additionally, TD Cowen upgraded Rocket Lab to a "strong-buy" in a research note on February 24th. Meanwhile, KeyCorp adjusted their target down from $32.00 to $28.00 while still holding an "overweight" recommendation on the stock as of February 28th. Citigroup also lowered their price objective from $35.00 to $33.00, tagging the company with a "buy" rating on the same day. Goldman Sachs raised its target price from $12.00 to $13.50, giving Rocket Lab a "neutral" rating as reported on January 16th. In summary, five research analysts have given the stock a hold rating, six marked it as a buy, and one rated it a strong buy, yielding a consensus rating of "Moderate Buy" with an average target price set at $23.06.

Rocket Lab USA Financials Overview

As for recent financial figures, Rocket Lab USA reported its quarterly earnings on February 27th. The company posted an earnings per share (EPS) of ($0.10), which fell short of analysts' expectations of ($0.09) by $0.01. The company is facing challenges, noted by a negative net margin of 51.76% and a return on equity of -39.47%. In terms of revenue, Rocket Lab generated $132.39 million for the quarter, slightly above the forecast of $130.58 million. Analysts are predicting that the company will report an EPS of -0.38 for the current fiscal year.

Insider Trading Activities at Rocket Lab USA

In other news regarding Rocket Lab USA, insider Frank Klein sold 44,553 shares of stock on March 14th for an average price of $18.18, totaling $809,973.54 for the transaction. Following this sale, Klein retains ownership of 1,419,479 shares valued at about $25.8 million, marking a 3.04% decrease in percentage ownership. This transaction was documented in a filing with the SEC.

Institutional Investments in Rocket Lab USA

Recent changes in holdings by hedge funds and institutional investors have also occurred. For instance, Spectrum Wealth Counsel LLC made a new investment in Rocket Lab USA worth around $25,000 during the fourth quarter. Similarly, Sandy Spring Bank and MassMutual Private Wealth & Trust FSB acquired new stakes valued at about $26,000 and $29,000, respectively. Wingate Wealth Advisors and Quarry LP also purchased stakes during the fourth quarter, valued at approximately $40,000 and $48,000. Currently, institutional investors own 71.78% of Rocket Lab USA’s stock.

Company Background of Rocket Lab USA

Rocket Lab USA, Inc. is a prominent player in the space sector, providing launch services and space systems solutions tailored for both space and defense industries. Their offerings extend to launch services, spacecraft design, manufacturing, and on-orbit management solutions, as well as constellation management services. They specialize in designing and manufacturing small to medium-class rockets.

Conclusion: Should You Invest in Rocket Lab USA?

Before deciding to invest $1,000 in Rocket Lab USA, it's essential to consider various factors. MarketBeat keeps close tabs on leading research analysts' recommendations across the market. Notably, they have identified five stocks that are recommended for purchase right now, and Rocket Lab USA does not feature on that list. Despite its current Moderate Buy rating from analysts, it may be prudent to explore other investment possibilities.

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