Rocket Lab USA Inc [NASDAQ: RKLB] loss -1.12% on the last trading session, reaching $3.97 price per share at the time. The company report on February 1, 2024 at 10:08 PM that Rocket Lab Announces Pricing of Upsized Offering of $300 Million Convertible Senior Notes.
Rocket Lab USA, Inc. (“Rocket Lab”, “we”, “us” or “our”) (Nasdaq: RKLB), a global leader in launch services and space systems, announced today the pricing of its previously announced private offering of $300.0 million aggregate principal amount of 4.250% convertible senior notes due 2029 (the “notes”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering was upsized from the previously announced offering size of $275.0 million aggregate principal amount of notes. In connection with this offering, Rocket Lab granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including the date the notes are first issued, up to an additional $55.0 million aggregate principal amount of the notes. The offering of the notes is expected to close on February 6, 2024, subject to customary closing conditions.
The notes will be senior, unsecured obligations of Rocket Lab and will accrue interest at a rate of 4.250% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on August 1, 2024. The notes will mature on February 1, 2029, unless earlier converted, redeemed or repurchased. Before November 1, 2028, noteholders will have the right to convert their notes in certain circumstances and during specified periods. From and after November 1, 2028, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Rocket Lab will settle conversions by paying or delivering, as applicable, cash, shares of its common stock, par value $0.0001 per share (“common stock”), or a combination of cash and shares of its common stock, at Rocket Lab’s election. The initial conversion rate is 195.1029 shares of common stock per $1,000 principal amount of the notes, which represents an initial conversion price of approximately $5.13 per share of common stock. The initial conversion price represents a premium of approximately 27.5% above the last reported sale price of the common stock on The Nasdaq Capital Market on February 1, 2024, which was $4.02 per share. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.
If compared to the average trading volume of 7.08M shares, RKLB reached a trading volume of 44050915 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 $8.12 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 1.33. 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.
KeyBanc Capital Markets 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 17, 2024.
The Average True Range (ATR) for Rocket Lab USA Inc is set at 0.31, with the Price to Sales ratio for RKLB stock in the period of the last 12 months amounting to 8.17. The Price to Book ratio for the last quarter was 3.30, with the Price to Cash per share for the same quarter was set at 0.59.
Trading performance analysis for RKLB stock
Rocket Lab USA Inc [RKLB] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -18.55. With this latest performance, RKLB shares dropped by -22.06% in over the last four-week period, additionally sinking by -43.46% over the last 6 months – not to mention a drop of -20.18% 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 30.49, with the RSI for the last a single of trading hit 22.48, and the three-weeks RSI is set at 36.06 for Rocket Lab USA Inc [RKLB]. The present Moving Average for the last 50 days of trading for this stock 4.87, while it was recorded at 4.59 for the last single week of trading, and 5.12 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 1.33 and a Current Ratio set at 1.67.
Rocket Lab USA Inc [RKLB]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Rocket Lab USA Inc posted -0.08/share EPS, while the average EPS was predicted by analysts to be reported at -0.07/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -14.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RKLB.
An analysis of Institutional ownership at Rocket Lab USA Inc [RKLB]
The top three institutional holders of RKLB stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in RKLB stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in RKLB stock with ownership which is approximately 5.8325%.
