Rocket Lab (NASDAQ:RKLB) Shares Down 1.2% – Here’s Why

Rocket Lab Corporation (NASDAQ:RKLB)’s stock price was down 1.2% during trading on Thursday . The company traded as low as $82.26 and last traded at $83.08. Approximately 29,741,704 shares changed hands during mid-day trading, a decline of 11% from the average daily volume of 33,398,809 shares. The stock had previously closed at $84.08.

Key Stories Impacting Rocket Lab

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

• Positive Sentiment: Landing a large U.S. national‑security award: Rocket Lab won an $816 million prime contract to build missile‑defense satellites for the U.S. Space Force, a major revenue and credibility catalyst for the company as a government prime contractor. Why Rocket Lab (RKLB) Is Up 22.1% After Landing an $816 Million Space Force Contract
• Positive Sentiment: Momentum and breakouts: Analysts and market write‑ups point to record contract wins, a technically constructive breakout to all‑time highs, and sector rotation into space/defense names that have amplified buying pressure. Rocket Lab’s Rally Isn’t Random—Big Catalysts Are Ahead
• Positive Sentiment: Retail investor interest and execution: Coverage notes strong retail demand and operational execution (revenue growth and launch cadence) as fuel for the rally. Rocket Lab (RKLB) Stock: Space Company Reaches New All-Time High
• Neutral Sentiment: Mixed fundamentals: The company reported revenue beats and strong year‑over‑year growth but remains unprofitable; investors are watching Q4 results and Neutron program milestones for validation. Is It Too Late To Consider Rocket Lab (RKLB) After Its Recent Share Price Surge?
• Neutral Sentiment: Short‑term outperformance note: Some analyst screens highlight RKLB’s rapid one‑month surge — helpful for momentum traders but increases the need for discipline on entry and risk management. RKLB Outperforms Industry in the Past Month: Time to Buy the Stock?
• Negative Sentiment: Large insider selling by CFO: CFO Adam C. Spice sold ~1.365M shares (~50% of his holding) for roughly $103M, a high‑profile sale that can increase perceived downside risk and supply pressure. CFO Sale SEC Filing
• Negative Sentiment: Additional insider selling: Director/executive Frank Klein sold 100,000 shares (~$7.3M) in early January, adding to near‑term selling flow. Frank Klein Sale SEC Filing
• Negative Sentiment: Valuation risk and cautionary coverage: Multiple commentaries warn the post‑rally valuation is stretched (very high P/S and negative EPS) and any slippage on Neutron timelines or contract execution could pressure the stock. What’s Happening With RKLB Stock?

Wall Street Analyst Weigh In

RKLB has been the topic of a number of research reports. 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. Morgan Stanley lowered their price objective on shares of Rocket Lab from $68.00 to $67.00 and set an “equal weight” rating for the company in a research report on Wednesday, November 12th. Bank of America lifted their price objective on shares of Rocket Lab from $50.00 to $60.00 and gave the stock a “buy” rating in a research note on Wednesday, November 19th. Finally, Robert W. Baird initiated coverage on shares of Rocket Lab in a report on Wednesday, October 15th. They issued an “outperform” rating and a $83.00 price target for the company. Two equities research 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 given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $61.25.

Rocket Lab Trading Down 1.2%

The company’s 50 day simple moving average is $57.10 and its 200-day simple moving average is $51.56. The firm has a market cap of $44.38 billion, a P/E ratio of -218.63 and a beta of 2.16. 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 issued its quarterly earnings results on Monday, November 10th. The rocket manufacturer reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.02. The firm had revenue of $155.08 million during the quarter, compared to analyst estimates of $152.45 million. Rocket Lab had a negative return on equity of 27.26% and a negative net margin of 35.64%.Rocket Lab’s quarterly revenue was up 48.0% compared to the same quarter last year. During the same period last year, the company earned ($0.10) EPS. As a group, research analysts predict that Rocket Lab Corporation will post -0.38 earnings per share for the current fiscal year.

Insider Activity at Rocket Lab

In other Rocket Lab news, Director Nina Armagno sold 27,314 shares of the firm’s stock in a transaction on Friday, December 19th. The stock was sold at an average price of $68.21, for a total transaction of $1,863,087.94. Following the transaction, the director directly owned 108,940 shares in the company, valued at $7,430,797.40. This trade represents a 20.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Adam C. Spice sold 1,365,665 shares of the company’s stock in a transaction 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 owned 1,359,568 shares of the company’s stock, valued at $102,647,384. This represents a 50.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 4,197,650 shares of company stock worth $262,429,052 over the last ninety days. 11.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rocket Lab

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in Rocket Lab by 5.4% during the 3rd quarter. Vanguard Group Inc. now owns 41,809,723 shares of the rocket manufacturer’s stock worth $2,003,104,000 after acquiring an additional 2,127,565 shares in the last quarter. Capital World Investors boosted its stake in shares of Rocket Lab by 9.4% during the third quarter. Capital World Investors now owns 14,462,103 shares of the rocket manufacturer’s stock valued at $692,879,000 after purchasing an additional 1,242,547 shares in the last quarter. State Street Corp increased its holdings in Rocket Lab by 13.6% during the third quarter. State Street Corp now owns 12,399,571 shares of the rocket manufacturer’s stock valued at $594,063,000 after buying an additional 1,487,237 shares during the period. Baillie Gifford & Co. raised its stake in Rocket Lab by 176.1% in the third quarter. Baillie Gifford & Co. now owns 12,125,910 shares of the rocket manufacturer’s stock worth $580,952,000 after buying an additional 7,734,788 shares in the last quarter. Finally, Invesco Ltd. raised its stake in Rocket Lab by 67.0% in the second quarter. Invesco Ltd. now owns 6,242,304 shares of the rocket manufacturer’s stock worth $223,287,000 after buying an additional 2,504,054 shares in the last quarter. Hedge funds and other 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.