Rocket Lab USA’s (RKLB) Director, Matthew Ocko, recently sold shares worth nearly $96.7 million. It should be noted that the stock sale came after the company’s share price skyrocketed 248.8% so far in 2024. RKLB is an aerospace company specializing in small satellite launch services and space systems.
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Several reasons contributed to RKLB’s impressive share price growth. These include successful launches of its Electron rocket and strong contract backlogs. Also, the company expanded its mission capabilities, such as deploying satellites to higher orbits, which raised optimism about Rocket Lab’s prospects.
A Closer Look at the Insider’s Transaction
According to the most recent SEC filing, Ocko divested 5.37 million shares of RKLB at prices ranging from $16.88 to $19.66 per share. The shares were sold in multiple transactions on November 14 and November 15. Following the latest divestment, the insider still owns Rocket Labs stock worth about $65.36 million.
On TipRanks, Rocket Labs currently has a Very Negative insider confidence signal, based on informative sell transactions worth $906,100 undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Top-Rated TD Cowen Analyst Bullish on RKLB
While insiders are bearish on the stock, Top-rated TD Cowen analyst Cai von Rumohr assigned a Buy rating on RKLB with a price target of $25 per share (to see Rumohr’s track record, click here).
The analyst is optimistic about the company’s progress with the Electron rocket, improved execution, and a robust launch schedule. Further, he expects the company’s gross margins and revenues to improve going forward.
Is RKLB a Good Stock to Buy?
Turning to Wall Street, RKLB stock has a Moderate Buy consensus rating based on seven Buys and three Holds assigned in the last three months. At $20.56, the average Rocket Labs price target implies a 6.58% upside potential.
