Rocket Lab (NASDAQ:RKLB) Downgraded to “Sell” Rating by Wall Street Zen

Wall Street Zen cut shares of Rocket Lab (NASDAQ:RKLB) from a hold rating to a sell rating in a research report report published on Saturday morning.

RKLB has been the subject of several other research reports. Morgan Stanley raised shares of Rocket Lab from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $67.00 to $105.00 in a research report on Friday, January 16th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Rocket Lab in a report on Wednesday, December 3rd. Needham & Company LLC raised their price objective on Rocket Lab from $63.00 to $90.00 and gave the company a “buy” rating in a research report on Tuesday, December 23rd. Robert W. Baird raised Rocket Lab to a “strong-buy” rating in a research report on Thursday, October 16th. Finally, Stifel Nicolaus increased their price objective on shares of Rocket Lab from $75.00 to $85.00 and gave the company a “buy” rating in a research report on Monday, December 22nd. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Rocket Lab currently has a consensus rating of “Moderate Buy” and a consensus price target of $72.92.

Rocket Lab Price Performance

RKLB stock opened at $80.07 on Friday. The company has a market cap of $42.77 billion, a PE ratio of -210.71 and a beta of 2.16. The company has a current ratio of 3.18, a quick ratio of 2.83 and a debt-to-equity ratio of 0.32. The stock has a 50-day moving average price of $69.91 and a two-hundred day moving average price of $57.60. Rocket Lab has a 12-month low of $14.71 and a 12-month high of $99.58.

Rocket Lab (NASDAQ:RKLB) last released 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. The business had revenue of $155.08 million for 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%.The company’s revenue was up 48.0% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.10) EPS. As a group, research analysts predict that Rocket Lab will post -0.38 EPS for the current year.

Insider Activity at Rocket Lab

In related news, Director Merline Saintil sold 96,000 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $86.58, for a total transaction of $8,311,680.00. Following the sale, the director owned 292,529 shares in the company, valued at $25,327,160.82. This represents a 24.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Arjun Kampani sold 28,615 shares of the 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 completion of the sale, the senior vice president directly owned 461,014 shares in the company, valued at $18,740,219.10. This represents a 5.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 4,306,150 shares of company stock worth $271,865,732. 11.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rocket Lab

A number of institutional investors and hedge funds have recently bought and sold shares of RKLB. Baillie Gifford & Co. boosted its holdings in Rocket Lab by 176.1% during 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. Vanguard Group Inc. grew its position in Rocket Lab by 13.4% during the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer’s stock worth $3,308,033,000 after purchasing an additional 5,610,469 shares in the last quarter. Norges Bank acquired a new stake in shares of Rocket Lab in the second quarter worth $164,751,000. Invesco Ltd. grew its stake in Rocket Lab by 67.0% during the 2nd quarter. Invesco Ltd. now owns 6,242,304 shares of the rocket manufacturer’s stock valued at $223,287,000 after acquiring an additional 2,504,054 shares in the last quarter. Finally, Marex Group plc acquired a new position in shares of Rocket Lab in the 2nd quarter valued at about $74,359,000. Institutional investors own 71.78% of the company’s stock.

More Rocket Lab News

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)

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.