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LONG BEACH, Calif. - Rocket Lab USA, Inc. (NASDAQ:RKLB), a provider of launch services and space systems, with a current market capitalization of $8.1 billion, has revealed the initiation of a new at-the-market offering program. The company may intermittently sell shares of its common stock up to an aggregate value of $500 million. This move is aimed at funding growth and potential acquisitions, including the intended purchase of Mynaric, a laser communications provider. According to InvestingPro data, the stock has shown significant momentum with a 156% gain over the past six months, despite recent volatility.
The equity distribution agreement for the stock sale involves BofA Securities, Inc., Cantor Fitzgerald & Co., Stifel, Nicolaus & Company, Incorporated, and TD Securities (USA) LLC. Sales could be executed through various methods, including on the Nasdaq Capital Market or other trading venues, over-the-counter transactions, or in privately negotiated deals. Prices will be subject to market conditions at the time of each sale.
Rocket Lab, founded in 2006 and headquartered in Long Beach, California, is known for the Electron small orbital launch vehicle and is developing the larger Neutron launch vehicle. The company has delivered 198 satellites into orbit since its first launch in January 2018, serving a range of purposes from national security to climate monitoring. It also supports NASA missions and has plans for the first private commercial mission to Venus. The company has demonstrated strong operational growth, with revenue increasing by 78% in the last twelve months to $436 million.
Investors interested in the offering can obtain the prospectus supplement and related documents from the participating financial institutions or the SEC’s website. The press release emphasizes that this announcement is not an offer to sell or a solicitation of an offer to buy the securities. For deeper insights into RKLB’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 16+ additional ProTips and detailed valuation metrics in the Pro Research Report.
The company’s future plans as outlined in this statement are forward-looking and subject to various risks and uncertainties. The actual results may differ from those projected due to factors detailed in Rocket Lab’s filings with the SEC, including its most recent Annual Report on Form 10-K. Currently, analysts maintain a bullish consensus on the stock, though InvestingPro data indicates the company operates with moderate debt levels and faces profitability challenges in the near term.
This article is based on a press release statement from Rocket Lab USA, Inc.
In other recent news, Rocket Lab USA, Inc. reported revenues at the upper end of its projected range and a smaller-than-expected adjusted EBITDA loss. However, the company’s guidance for the first quarter did not meet expectations due to lower average selling prices affecting launch revenue and mixed factors impacting space systems revenue. Stifel analysts responded by lowering their price target for Rocket Lab from $31 to $27, maintaining a Buy rating and viewing any stock price decline as an opportunity for investors. KeyBanc Capital Markets also adjusted their price target, reducing it to $28 from $32, while keeping an Overweight rating, citing a recalibration of first-quarter 2025 sales expectations.
Rocket Lab has been active with its launch schedule, planning two Electron rocket launches just three days apart from its New Zealand site. These missions include a synthetic aperture radar satellite for iQPS and a mission for Kinéis, marking the 61st and 62nd Electron launches. Additionally, Rocket Lab played a crucial role in Firefly Aerospace’s successful Moon landing with its software and hardware solutions. The Neutron rocket development timeline has been extended into the second half of 2025, with analysts highlighting it as a significant catalyst for Rocket Lab’s market expansion. Despite these challenges, analysts from both Stifel and KeyBanc express confidence in Rocket Lab’s strategic direction and long-term growth potential.
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