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

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

Several other research analysts have also recently issued reports on the stock. Roth Capital set a $110.00 target price on shares of Rocket Lab in a report on Tuesday, August 11th. Needham & Company LLC restated a “buy” rating on shares of Rocket Lab in a research note on Tuesday, August 11th. Piper Sandler assumed coverage on Rocket Lab in a research report on Wednesday, July 15th. They set a “neutral” rating and a $83.00 price objective on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rocket Lab in a report on Friday, July 17th. Finally, Stifel Nicolaus set a $132.00 price target on shares of Rocket Lab in a research note on Thursday, June 4th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $110.65.

Rocket Lab Stock Performance

Rocket Lab stock opened at $80.25 on Friday. Rocket Lab has a 12 month low of $37.57 and a 12 month high of $151.00. The company has a market capitalization of $48.02 billion, a price-to-earnings ratio of -297.21 and a beta of 2.60. The business’s fifty day simple moving average is $85.09 and its two-hundred day simple moving average is $85.52. The company has a current ratio of 5.48, a quick ratio of 4.98 and a debt-to-equity ratio of 0.01.

Rocket Lab (NASDAQ:RKLB) last issued its quarterly earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.02). The company had revenue of $234.07 million for the quarter, compared to the consensus estimate of $231.62 million. Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. As a group, equities analysts predict that Rocket Lab will post -0.25 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rocket Lab news, CFO Adam C. Spice sold 62,744 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $142.57, for a total value of $8,945,412.08. Following the transaction, the chief financial officer directly owned 983,049 shares in the company, valued at approximately $140,153,295.93. This trade represents a 6.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Arjun Kampani sold 88,000 shares of Rocket Lab stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $107.98, for a total transaction of $9,502,240.00. Following the transaction, the senior vice president owned 264,705 shares in the company, valued at $28,582,845.90. This represents a 24.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,749,294 shares of company stock valued at $351,008,208 in the last 90 days. 8.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Rocket Lab

Hedge funds and other institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC grew its holdings in Rocket Lab by 114.0% during the first quarter. AQR Capital Management LLC now owns 174,308 shares of the rocket manufacturer’s stock valued at $3,117,000 after purchasing an additional 92,849 shares during the period. NewEdge Advisors LLC raised its stake in shares of Rocket Lab by 1,812.1% in the first quarter. NewEdge Advisors LLC now owns 36,807 shares of the rocket manufacturer’s stock worth $658,000 after buying an additional 34,882 shares during the period. Jones Financial Companies Lllp lifted its position in shares of Rocket Lab by 53.8% during the 1st quarter. Jones Financial Companies Lllp now owns 15,745 shares of the rocket manufacturer’s stock valued at $282,000 after buying an additional 5,507 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Rocket Lab by 13.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 773,548 shares of the rocket manufacturer’s stock valued at $13,831,000 after buying an additional 90,758 shares in the last quarter. Finally, Focus Partners Wealth grew its stake in shares of Rocket Lab by 1.0% during the 1st quarter. Focus Partners Wealth now owns 67,584 shares of the rocket manufacturer’s stock valued at $1,206,000 after acquiring an additional 681 shares during the period. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Lab News Roundup

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

• Positive Sentiment: Rocket Lab secured a $397 million Space Force contract to deploy Flatellite low-Earth-orbit systems for airborne threat tracking. The award lifts the company’s reported 2026 U.S. defense contract total to approximately $943 million and strengthens its government and national-security business. Rocket Lab Stock: Slightly Drop as Space Force Awards $397M Deal for Flatellites
• Positive Sentiment: The Space Force also awarded Rocket Lab approximately $12 million for an orbital data network, adding to evidence of growing defense demand for its launch and space-systems capabilities. The company’s HASTE and GHOST offerings may provide additional opportunities in hypersonic testing and defense missions. RKLB Stock Gains Overnight: Rocket Lab Advances Neutron and Wins New Space Force Deal
• Positive Sentiment: Rocket Lab reported record second-quarter revenue of $234.1 million, up 62% year over year, while next-quarter revenue guidance of about $257.5 million reportedly exceeded expectations. Its backlog reached roughly $2.4 billion, supporting the long-term growth outlook. RKLB Q2 Deep Dive: Iridium Acquisition, Neutron Progress, and Margin Pressures Shape Outlook
• Positive Sentiment: KeyBanc, Stifel and other analysts remain constructive, with recent price targets ranging from approximately $115 to $135 and a reported consensus implying substantial upside. How Much Upside Is Left in Rocket Lab Corporation?
• Neutral Sentiment: Regulatory progress on the proposed Iridium acquisition continued after the U.S. antitrust waiting period expired and required filings were submitted. However, Rocket Lab is arranging approximately $3.6 billion of financing, making the transaction’s execution and leverage important investor risks. Rocket Lab Clears a Major Hurdle on the Iridium Acquisition
• Negative Sentiment: Despite the revenue beat, Rocket Lab’s quarterly loss was wider than expected. Investors are also concerned that the highly anticipated first Neutron flight could slip into 2027, delaying a key catalyst and leaving the stock’s premium valuation vulnerable. Rocket Lab’s Highly Anticipated Neutron Flight May Be Delayed
• Negative Sentiment: The company authorized a replacement $1.94 billion at-the-market stock offering to help fund the Iridium transaction and reduce debt needs. Although the total authorization was not increased, future share issuance could dilute existing holders. Insiders have also reported extensive selling with no purchases in the past six months. Rocket Lab Announces Replacement At-the-Market Equity Program

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.