Rocket Lab USA Inc. [RKLB] stock Initiated by Morgan Stanley analyst, price target now $17

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Rocket Lab USA Inc. [NASDAQ: RKLB] gained 5.43% on the last trading session, reaching $11.45 price per share at the time. The company report on January 7, 2022 that Rocket Lab Announces “Redemption Fair Market Value” in Connection With Redemption of its Outstanding Warrants.

Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today announced the “Redemption Fair Market Value” in connection with its previously announced redemption of its outstanding Warrants (as defined below). The Redemption Fair Market Value will be used to determine the number of shares of common stock, par value $0.0001 per share (the “Common Stock”), that will be issued on a “cashless” exercise of a Warrant subject to the terms of the Warrant Agreement (as defined below).


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On December 22, 2021, the Company announced that it will redeem all of its outstanding public warrants (the “Public Warrants”) to purchase shares of the Company’s common stock that were issued under the Warrant Agreement, dated as of September 24, 2020, by and among Rocket Lab USA, Inc. (f/k/a Vector Acquisition Corporation) and Continental Stock Transfer & Trust Company (“Continental”), as original warrant agent, as amended by and assigned to and assumed by the Company, pursuant to that certain Amendment to Warrant Agreement, dated August 25, 2021, by and among Rocket Lab USA, Inc. (f/k/a Vector Acquisition Corporation), Continental, and American Stock Transfer & Trust Company, LLC (“AST”), as successor warrant agent (as so amended, the “Warrant Agreement”), as part of the units sold in the Company’s initial public offering (the “IPO”) and that remain outstanding at 5:00 p.m. New York City time on January 21, 2022 (the “Redemption Date”) for a redemption price of $0.10 per Public Warrant. In addition, the Company announced that it will redeem all of its outstanding warrants to purchase Common Stock that were issued under the Warrant Agreement in a private placement simultaneously with the IPO (the “Private Placement Warrants” and, together with the Public Warrants, the “Warrants”) on the same terms as the outstanding Public Warrants. In connection with the redemption, AST previously delivered a redemption notice (the “Redemption Notice”) on the Company’s behalf, and the Company committed to inform holders of Warrants of the calculation of the Redemption Fair Market Value (as defined in the Warrant Agreement).

Rocket Lab USA Inc. represents 228.27 million in outstanding shares, while the company has a total market value of $5.04 billion with the latest information. RKLB stock price has been found in the range of $11.20 to $11.735.

If compared to the average trading volume of 3.50M shares, RKLB reached a trading volume of 3314140 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Rocket Lab USA Inc. [RKLB]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RKLB shares is $21.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RKLB stock is a recommendation set at 1.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Rocket Lab USA Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on January 12, 2022. While these analysts kept the previous recommendation, BofA Securities raised their target price to Buy. The new note on the price target was released on November 30, 2021, representing the official price target for Rocket Lab USA Inc. stock. Previously, the target price had yet another raise to $22, while Stifel analysts kept a Buy rating on RKLB stock.

The Average True Range (ATR) for Rocket Lab USA Inc. is set at 0.78, with the Price to Sales ratio for RKLB stock in the period of the last 12 months amounting to 99.88. The Price to Book ratio for the last quarter was 3.88, with the Price to Cash per share for the same quarter was set at 1.80.

Trading performance analysis for RKLB stock

Rocket Lab USA Inc. [RKLB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.01. With this latest performance, RKLB shares dropped by -2.64% in over the last four-week period, additionally plugging by 10.10% over the last 6 months – not to mention a rise of 8.84% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RKLB stock in for the last two-week period is set at 44.68, with the RSI for the last a single of trading hit 48.11, and the three-weeks RSI is set at 44.10 for Rocket Lab USA Inc. [RKLB]. The present Moving Average for the last 50 days of trading for this stock 13.35, while it was recorded at 10.86 for the last single week of trading, and 12.03 for the last 200 days.

Rocket Lab USA Inc. [RKLB]: A deeper dive into fundamental analysis

Rocket Lab USA Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 10.60 and a Current Ratio set at 11.10.

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An analysis of insider ownership at Rocket Lab USA Inc. [RKLB]

There are presently around $3,058 million, or 59.90% of RKLB stock, in the hands of institutional investors. The top three institutional holders of RKLB stocks are: VK SERVICES, LLC with ownership of 115,004,795, which is approximately New of the company’s market cap and around 24.11% of the total institutional ownership; DEER VIII & CO. LTD., holding 81,450,954 shares of the stock with an approximate value of $932.61 million in RKLB stocks shares; and STEPSTONE GROUP LP, currently with $199.65 million in RKLB stock with ownership of nearly New of the company’s market capitalization.

Positions in Rocket Lab USA Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 72 institutional holders increased their position in Rocket Lab USA Inc. [NASDAQ:RKLB] by around 262,939,667 shares. Additionally, 24 investors decreased positions by around 3,428,282 shares, while 9 investors held positions by with 675,619 shares. The mentioned changes placed institutional holdings at 267,043,568 shares, according to the latest SEC report filing. RKLB stock had 55 new institutional investments in for a total of 255,315,976 shares, while 16 institutional investors sold positions of 2,756,234 shares during the same period.