Rocket Lab (NASDAQ:RKLB) Shares Down 2.3% After Insider Selling

Rocket Lab Corporation (NASDAQ:RKLB) shares dropped 2.3% during trading on Wednesday following insider selling activity. The stock traded as low as $81.85 and last traded at $84.0660. Approximately 28,294,787 shares were traded during mid-day trading, a decline of 17% from the average daily volume of 34,213,625 shares. The stock had previously closed at $86.03.

Specifically, insider Frank Klein sold 100,000 shares of Rocket Lab stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $72.95, for a total value of $7,295,000.00. Following the completion of the transaction, the insider owned 1,169,487 shares of the company’s stock, valued at $85,314,076.65. The trade was a 7.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CFO Adam C. Spice sold 1,365,665 shares of the firm’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $75.50, for a total value of $103,107,707.50. Following the completion of the sale, the chief financial officer directly owned 1,359,568 shares in the company, valued at approximately $102,647,384. This trade represents a 50.11% decrease in their position. The disclosure for this sale is available in the SEC filing.

Wall Street Analysts Forecast Growth

Several analysts recently commented on RKLB shares. Robert W. Baird assumed coverage on Rocket Lab in a research report on Wednesday, October 15th. They issued an “outperform” rating and a $83.00 target price on the stock. Citigroup reaffirmed a “market perform” rating on shares of Rocket Lab in a research note on Wednesday, November 12th. Wall Street Zen upgraded shares of Rocket Lab from a “sell” rating to a “hold” rating in a research report on Saturday, January 3rd. Needham & Company LLC increased their price target on Rocket Lab from $63.00 to $90.00 and gave the company a “buy” rating in a research report on Tuesday, December 23rd. Finally, Roth Capital reissued a “buy” rating and set a $75.00 target price on shares of Rocket Lab in a research note on Tuesday, November 11th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Rocket Lab currently has an average rating of “Moderate Buy” and an average target price of $61.25.

Key Stories Impacting Rocket Lab

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Big government contract: Rocket Lab won an $816 million prime award to build 18 missile-defense satellites for a Space Force program — a material, credibility-boosting government win that helped spark the recent rally. Read More.
• Positive Sentiment: Record highs and sector tailwinds: RKLB hit consecutive all-time highs as investor interest in space/defense names and retail momentum accelerated, supporting market capitalization expansion and technical breakouts. Read More.
• Positive Sentiment: Revenue and execution narrative: Recent quarters showed strong top-line growth and analysts are focusing on contract pipeline and launch cadence as proof points for the growth story. Read More.
• Neutral Sentiment: Debate on timing: Several pieces weigh whether the current run makes RKLB “too late” for new buyers — useful framing for entry strategy but not a direct catalyst. Read More.
• Neutral Sentiment: Analyst/feature coverage: Coverage from Forbes, Seeking Alpha and Zacks highlights momentum and upcoming catalysts (Neutron, launches, contract flow) — these shape expectations but contain mixed valuation views. Read More.
• Negative Sentiment: Insider selling: Multiple insider sales were disclosed (including Frank Klein selling ~100k shares and other high-profile transactions noted in filings), which has increased selling pressure and raised investor scrutiny. Read More.
• Negative Sentiment: Valuation risk: Commentators warn the post-rally valuation is stretched — if Neutron timelines slip or execution disappoints, the stock could give back gains. Read More.

Rocket Lab Stock Down 1.2%

The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.83 and a current ratio of 3.18. The firm has a market capitalization of $44.38 billion, a price-to-earnings ratio of -218.63 and a beta of 2.16. The business’s 50 day moving average is $57.54 and its 200-day moving average is $51.78.

Rocket Lab (NASDAQ:RKLB) last posted its quarterly earnings data on Monday, November 10th. The rocket manufacturer reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.02. Rocket Lab had a negative return on equity of 27.26% and a negative net margin of 35.64%.The company had revenue of $155.08 million during the quarter, compared to analysts’ expectations of $152.45 million. During the same period in the prior year, the business earned ($0.10) earnings per share. Rocket Lab’s revenue for the quarter was up 48.0% compared to the same quarter last year. Equities analysts anticipate that Rocket Lab Corporation will post -0.38 EPS for the current fiscal year.

Institutional Trading of Rocket Lab

A number of hedge funds have recently modified their holdings of the company. Capital Investment Advisory Services LLC grew its holdings in shares of Rocket Lab by 2.1% during the 3rd quarter. Capital Investment Advisory Services LLC now owns 10,432 shares of the rocket manufacturer’s stock worth $500,000 after purchasing an additional 212 shares in the last quarter. Keel Point LLC boosted its stake in Rocket Lab by 0.4% during the third quarter. Keel Point LLC now owns 51,428 shares of the rocket manufacturer’s stock worth $2,464,000 after buying an additional 226 shares in the last quarter. Truist Financial Corp boosted its stake in Rocket Lab by 1.9% during the second quarter. Truist Financial Corp now owns 12,352 shares of the rocket manufacturer’s stock worth $442,000 after buying an additional 234 shares in the last quarter. ORG Partners LLC increased its holdings in Rocket Lab by 22.1% in the 3rd quarter. ORG Partners LLC now owns 1,337 shares of the rocket manufacturer’s stock valued at $64,000 after buying an additional 242 shares during the period. Finally, Parvin Asset Management LLC raised its stake in shares of Rocket Lab by 7.2% in the 2nd quarter. Parvin Asset Management LLC now owns 3,725 shares of the rocket manufacturer’s stock valued at $133,000 after buying an additional 250 shares in the last quarter. Institutional investors own 71.78% of the company’s stock.

Rocket Lab Company Profile

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company’s primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company’s propulsion capabilities.