Wall Street Zen Downgrades Rocket Lab (NASDAQ:RKLB) to Sell

Rocket Lab (NASDAQ:RKLB) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

RKLB has been the subject of a number of other research reports. Zacks Research raised Rocket Lab from a “hold” rating to a “strong-buy” rating in a report on Monday, January 12th. Morgan Stanley raised shares of Rocket Lab from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $67.00 to $105.00 in a research report on Friday, January 16th. KeyCorp cut shares of Rocket Lab from an “overweight” rating to a “sector weight” rating in a research note on Thursday, January 15th. Weiss Ratings restated a “sell (d-)” rating on shares of Rocket Lab in a research report on Thursday, January 22nd. Finally, TD Cowen reiterated a “buy” rating on shares of Rocket Lab in a research report on Thursday, January 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Rocket Lab currently has an average rating of “Moderate Buy” and an average target price of $72.92.

Rocket Lab Stock Down 6.5%

Rocket Lab stock opened at $80.07 on Friday. Rocket Lab has a twelve month low of $14.71 and a twelve month high of $99.58. The stock has a market cap of $42.77 billion, a P/E ratio of -210.71 and a beta of 2.16. The company’s 50-day moving average price is $69.91 and its two-hundred day moving average price is $57.51. The company has a quick ratio of 2.83, a current ratio of 3.18 and a debt-to-equity ratio of 0.32.

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

Insider Buying and Selling at Rocket Lab

In other news, Director Merline Saintil sold 96,000 shares of the business’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $86.58, for a total transaction of $8,311,680.00. Following the completion of the transaction, the director owned 292,529 shares of the company’s stock, valued at approximately $25,327,160.82. The trade was a 24.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Arjun Kampani sold 28,615 shares of the company’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $40.65, for a total value of $1,163,199.75. Following the sale, the senior vice president owned 461,014 shares of the company’s stock, valued at approximately $18,740,219.10. This represents a 5.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 4,306,150 shares of company stock valued at $271,865,732. 11.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RKLB. Aventura Private Wealth LLC acquired a new stake in shares of Rocket Lab in the 4th quarter valued at approximately $25,000. V Square Quantitative Management LLC bought a new position in Rocket Lab in the 4th quarter valued at approximately $32,000. DecisionPoint Financial LLC boosted its position in Rocket Lab by 91.1% in the fourth quarter. DecisionPoint Financial LLC now owns 472 shares of the rocket manufacturer’s stock valued at $33,000 after buying an additional 225 shares in the last quarter. Asset Dedication LLC bought a new stake in shares of Rocket Lab during the fourth quarter worth $33,000. Finally, Eagle Bay Advisors LLC bought a new stake in shares of Rocket Lab during the fourth quarter worth $35,000. Institutional investors and hedge funds own 71.78% of the company’s stock.

Rocket Lab News Roundup

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

• Positive Sentiment: Successful launches: Rocket Lab completed its 81st Electron mission and its second launch in eight days, deploying KAIST’s NEONSAT‑1A — a clear signal of continued commercial and government demand and operational cadence that supports revenue visibility and launch backlog. Mission Success: Rocket Lab Launches Korean Earth-Imaging Satellite
• Positive Sentiment: Operational momentum: Management highlighted a busy 2026 launch cadence (commercial, government, national security and hypersonics), reinforcing the company’s positioning as a frequent small‑sat launcher and potential revenue growth from recurring missions. Rocket Lab Successfully Launches 81st Electron Rocket for KAIST
• Neutral Sentiment: Options/volatility interest: Several recent articles outline bullish options strategies (bull put spreads, other plays) that indicate elevated implied volatility and traders positioning for large moves — this increases short‑term trading activity even if it doesn’t change fundamentals. Rocket Lab Stock: This Options Play Takes Advantage Of Higher Gains
• Neutral Sentiment: Market backdrop: Broad market volatility (Fed chair news, hotter inflation) is pressuring growth/high‑beta names; some coverage frames RKLB’s pullback as a sell‑the‑news reaction rather than a change to long‑term thesis. MarketBeat Week in Review – 01/26 – 01/30
• Negative Sentiment: Analyst downgrade / bearish trade idea: A Seeking Alpha piece recommends avoiding outright buys and instead selling puts (rating downgrade), which can amplify downside pressure by encouraging cautious positioning and reducing demand for shares. Don’t Buy Rocket Lab, Sell Puts Instead (Rating Downgrade)
• Negative Sentiment: Insider selling and past technical shock: Public data referenced in recent coverage shows heavy insider sales over the past six months, and the stock still bears the scar from the prior Neutron test failure — both factors weigh on investor confidence and can exacerbate short‑term declines. Insider activity & company notes (Quiver summary)

About Rocket Lab

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.