Rocket Lab USA, Inc. RKLB shares are blasting higher Friday after the company announced it has entered into a $515 million agreement with a U.S. government customer to design, manufacture, deliver and operate 18 space vehicles.
The Details:
According to an SEC filing, the contract has a total value of $515 million, which includes a base amount of $489 million and incentives and options totaling $26 million. Work under the agreement will begin immediately with the delivery of the space vehicles slated for 2027, operation of the satellites through 2030, and an option to operate the satellites through 2033.
More than 20.4 million Rocket Lab shares have already been traded following the announcement, far exceeding the stock's 100-day average of 4.085 million shares.
Earlier in the week, Rocket Lab launched its tenth mission for the year. "Congratulations to our team for hitting a new annual launch record of ten missions, further cementing Electron's position as the leading small launch vehicle globally. Once again, for the fifth year running, Electron is the second most frequently launched U.S. rocket annually and we look forward to building on that record with an even busier year of launches in 2024," said Rocket Lab CEO, Peter Beck.
Rocket Lab shares have outsized short-interest with 47.28% of available shares being sold short, according to the latest data from Benzinga Pro.
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RKLB Price Action: According to Benzinga Pro, Rocket Lab USA shares are up by 26% at $5.60 at the time of publication.
Image: Karsten Bergmann from Pixabay
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