Cathie Wood’s ARK Buys $31.6M of Rocket Lab Shares

ARK Investment Management purchased 504,799 Rocket Lab shares on Tuesday across three ETFs for about $31.6 million at the $62.54 closing price. ARK added 200,303 shares on Monday, bringing two-day purchases to 705,102 shares, roughly $44 million at closing levels. Rocket Lab shares fell 2.2% on Tuesday, the ninth decline in 10 trading sessions, and slipped further in after-hours trading.

On Aug. 31, Bank of America analyst Ronald Epstein lowered his price target to $110 from $115 while keeping a Buy rating; at Tuesday’s close that target implied roughly 76% upside. Roth Capital analyst Suji Desilva reduced his target to $110 from $130 and retained a Buy rating, noting the company’s backlog provides meaningful near-term revenue coverage.

Execution of the Neutron medium-lift rocket is a central element of Rocket Lab’s outlook. Chief executive Peter Beck told investors after second-quarter results that the window for an end-of-year inaugural Neutron launch was narrowing. The company still needs to complete major testing milestones before a first flight.

Cantor Fitzgerald analyst Andres Sheppard raised his target to $122 from $96 after the quarter and described Neutron as “the most material catalyst.” He also pointed to ongoing supply constraints in the orbital launch market and Rocket Lab’s position with Electron, HASTE and the planned Neutron vehicle.

Rocket Lab finished the second quarter with a $2.36 billion backlog, up 137% year over year, and reported that about 45.5% of that backlog is expected to be recognized within 12 months. The company has more than 90 launches booked across its Electron small launcher, the HASTE rideshare service and the planned Neutron medium-lift rocket.

After Tuesday’s close, NASA awarded a firm-fixed-price contract to Blue Origin to develop a Mars Telecommunications Network. The contract has a maximum potential value of about $700 million and requires delivery of a Mars telecommunications orbiter by the end of 2028. Rocket Lab had been eligible to compete for the work.

ARK’s purchases increased its holdings in Rocket Lab during a prolonged pullback. Rocket Lab’s immediate tasks include completing remaining Neutron tests and converting backlog into recognized revenue.