It is Poised to be a Bull Market for Rocket Lab USA Inc. (RKLB)

Rocket Lab USA Inc. (NASDAQ: RKLB) stock jumped 21.16% on Friday to $7.10 against a previous-day closing price of $5.86. With 8.61 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.72 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $7.15 whereas the lowest price it dropped to was $5.61. The 52-week range on RKLB shows that it touched its highest point at $21.34 and its lowest point at $3.53 during that stretch. It currently has a 1-year price target of $13.62.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RKLB was up-trending over the past week, with a rise of 32.96%, but this was up by 81.59% over a month. Three-month performance surged to 36.80% while six-month performance fell -30.93%. The stock lost -32.64% in the past year, while it has lost -42.18% so far this year. A look at the trailing 12-month EPS for RKLB yields -0.48 with Next year EPS estimates of -0.13. For the next quarter, that number is -0.05. This implies an EPS growth rate of -324.20% for this year and 47.80% for next year.

Float and Shares Shorts:

At present, 456.50 million RKLB shares are outstanding with a float of 364.10 million shares on hand for trading. On Jul 14, 2022, short shares totaled 17.59 million, which was 3.79% higher than short shares on Jun 14, 2022. In addition to Mr. Peter Beck as the firm’s Founder, Chairman, Pres & CEO, Mr. Adam C. Spice serves as its CFO, Sec. & Treasurer.

Institutional Ownership:

Through their ownership of 60.93% of RKLB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 29.60% of RKLB, in contrast to 17.10% held by mutual funds. Shares owned by individuals account for 10.85%. As the largest shareholder in RKLB with 9.13% of the stake, The Future Fund Management Agency holds 42,364,939 shares worth 42,364,939. A second-largest stockholder of RKLB, The Vanguard Group, Inc., holds 19,683,657 shares, controlling over 4.24% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in RKLB, holding 13,214,975 shares or 2.85% stake. With a 2.24% stake in RKLB, the SPDR S&P Aerospace & Defense ETF is the largest stakeholder. A total of 10,364,449 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.47% of RKLB stock, is the second-largest Mutual Fund holder. It holds 6,825,603 shares valued at 31.88 million. Vanguard Small Cap Index Fund holds 1.26% of the stake in RKLB, owning 5,851,109 shares worth 27.32 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RKLB since 9 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RKLB analysts setting a high price target of $20.00 and a low target of $6.50, the average target price over the next 12 months is $13.63. Based on these targets, RKLB could surge 181.69% to reach the target high and fall by -8.45% to reach the target low. Reaching the average price target will result in a growth of 91.97% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RKLB will report FY 2022 earnings on 02/27/2023. Analysts have provided yearly estimates in a range of -$0.11 being high and -$0.32 being low. For RKLB, this leads to a yearly average estimate of -$0.21. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rocket Lab USA Inc. surprised analysts by -$0.03 when it reported -$0.08 EPS against a consensus estimate of -$0.05. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.02 and the low estimate is -$0.09. The average estimate for the next quarter is thus -$0.05.

Summary of Insider Activity:

Insiders traded RKLB stock several times over the past three months with 6 Buys and 4 Sells. In these transactions, 362,671 shares were bought while 32,822,439 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 2,886,703 while 52,465,399 shares were sold.

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