Rocket Lab Corporation (NASDAQ:RKLB) stock rose more than 2% in Wednesday premarket trading. Investors reacted to the launch of a new high-efficiency solar cell and fresh buying by Cathie Wood’s ARK Invest.
The gains came despite weakness in the broader market. Nasdaq futures fell 0.46%, while S&P 500 futures declined 0.36%.
New Solar Cell, Fresh ARK Buying
Rocket Lab on Tuesday launched IMM Apex, a new high-efficiency solar cell for space applications. The company said the cell offers 31.5% beginning-of-life conversion efficiency and 40% lower mass.
IMM Apex also eliminates the germanium substrates commonly used in multi-junction solar cells. Rocket Lab said the design could reduce exposure to rising material costs and supply constraints. The product is available immediately, with manufacturing capacity in the multi-100-kilowatt range.
Meanwhile, Cathie Wood’s ARK Invest added to its Rocket Lab position. The ARK Space Exploration & Innovation ETF (BATS:ARKX) bought 2,341 shares on Tuesday, worth about $154,000. That followed ARK’s purchase of 705,102 Rocket Lab shares across three ETFs over two trading days earlier this month.
The combination of the new product launch and continued ARK buying likely helped support Wednesday’s premarket gains.
Technical Analysis
Despite Wednesday’s rebound, Rocket Lab remains below its major moving averages. The stock is 4.9% below its 20-day simple moving average, or SMA, and 9.4% below its 50-day SMA. It is also 25.1% below its 100-day SMA and 15.1% below its 200-day SMA.
The 20-day SMA remains below the 50-day SMA, signaling near-term weakness. In addition, the 50-day SMA crossed below the 200-day SMA in August. This “death cross” points to pressure on the longer-term trend.
Momentum also remains weak. The MACD is below its signal line, while the histogram is negative. That suggests buying momentum has yet to recover fully.
Rocket Lab faces resistance near $78.50, while support sits around $58.50.
Still, the stock has gained 40.06% over the past 12 months. However, its distance from the 52-week high shows the extent of the pullback since May.
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Analyst Outlook
The stock carries a Buy consensus rating with an average price forecast of $110.71.
Bank of America Securities maintained a Buy rating and lowered its price forecast to $110 on Aug. 31. Citizens maintained a Market Outperform rating with a $130 forecast on Aug. 11. Cantor Fitzgerald maintained an Overweight rating and raised its forecast to $122 on Aug. 11.
Benzinga Edge Rankings
Rocket Lab has a Momentum score of 32.04 on the Benzinga Edge scorecard, putting the stock in neutral territory.
The reading fits a stock attempting to rebound while remaining below its major moving averages. A sustained move above resistance could strengthen the technical picture.
Top ETF Exposure
Rocket Lab has a 5.70% weighting in the ARK Space & Defense Innovation ETF (NASDAQ:ARKX). It also accounts for 4.07% of the ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and 4.04% of the Defiance Space and Connective Tech ETF (NASDAQ:UFOX).
Because Rocket Lab has sizable weightings in these funds, ETF inflows and outflows can contribute to buying or selling pressure in the stock.
Price Action
Rocket Lab shares rose 2.43% to $67.47 in Wednesday premarket trading, according to Benzinga Pro data.
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