An analyst sees good growth prospects for Rocket Lab USA Inc. (RKLB)

Rocket Lab USA Inc. (NASDAQ: RKLB) stock jumped 0.84% on Monday to $4.82 against a previous-day closing price of $4.78. With 4.28 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.4 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $4.8400 whereas the lowest price it dropped to was $4.6100. The 52-week range on RKLB shows that it touched its highest point at $11.11 and its lowest point at $3.48 during that stretch. It currently has a 1-year price target of $9.86.

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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 down-trending over the past week, with a drop of -3.02%, but this was up by 29.57% over a month. Three-month performance surged to 14.49% while six-month performance rose 19.01%. The stock lost -50.46% in the past year, while it has gained 27.85% so far this year. A look at the trailing 12-month EPS for RKLB yields -0.21 with Next year EPS estimates of -0.26. For the next quarter, that number is -0.07. This implies an EPS growth rate of -324.20% for this year and 7.40% for next year.

Float and Shares Shorts:

At present, 469.77 million RKLB shares are outstanding with a float of 372.96 million shares on hand for trading. On Oct 13, 2022, short shares totaled 18.72 million, which was 3.99% higher than short shares on Sep 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 57.27% of RKLB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 29.34% of RKLB, in contrast to 16.08% held by mutual funds. Shares owned by individuals account for 15.16%. As the largest shareholder in RKLB with 8.95% 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 21,035,413 shares, controlling over 4.45% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in RKLB, holding 14,914,419 shares or 3.15% stake. With a 2.14% stake in RKLB, the SPDR S&P Aerospace & Defense ETF is the largest stakeholder. A total of 10,140,911 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.71% of RKLB stock, is the second-largest Mutual Fund holder. It holds 8,071,932 shares valued at 30.43 million. Vanguard Small Cap Index Fund holds 1.42% of the stake in RKLB, owning 6,707,288 shares worth 25.29 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RKLB since 10 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 1 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 $15.00 and a low target of $3.00, the average target price over the next 12 months is $9.86. Based on these targets, RKLB could surge 211.2% to reach the target high and fall by -37.76% to reach the target low. Reaching the average price target will result in a growth of 104.56% 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 02/27/2024. Analysts have provided yearly estimates in a range of -$0.14 being high and -$0.30 being low. For RKLB, this leads to a yearly average estimate of -$0.24. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rocket Lab USA Inc. surprised analysts by -$0.00 when it reported -$0.07 EPS against a consensus estimate of -$0.07. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.05 and the low estimate is -$0.09. The average estimate for the next quarter is thus -$0.06.

Summary of Insider Activity:

Insiders traded RKLB stock several times over the past three months with 1 Buys and 5 Sells. In these transactions, 50,688 shares were bought while 8,303,327 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 6,243,742 while 67,376,546 shares were sold.

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