Rocket Lab (NASDAQ:RKLB) Rating Lowered to “Sell” at Wall Street Zen

Rocket Lab (NASDAQ:RKLB) was downgraded by equities researchers at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday.

A number of other equities analysts have also weighed in on RKLB. TD Cowen reaffirmed a “buy” rating on shares of Rocket Lab in a research note on Thursday, January 22nd. Zacks Research upgraded Rocket Lab from a “hold” rating to a “strong-buy” rating in a report on Monday, January 12th. Bank of America increased their price objective on Rocket Lab from $60.00 to $120.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. Needham & Company LLC boosted their target price on Rocket Lab from $63.00 to $90.00 and gave the company a “buy” rating in a research note on Tuesday, December 23rd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rocket Lab in a research report on Thursday, January 22nd. Two investment 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. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $72.92.

Rocket Lab Trading Down 6.5%

NASDAQ RKLB opened at $80.07 on Friday. Rocket Lab has a one year low of $14.71 and a one year high of $99.58. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.18 and a quick ratio of 2.83. The firm has a market cap of $42.77 billion, a P/E ratio of -210.71 and a beta of 2.16. The stock’s 50-day moving average is $69.91 and its 200-day moving average is $57.51.

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

Insider Activity at Rocket Lab

In other news, Director Nina Armagno sold 27,314 shares of the stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $68.21, for a total value of $1,863,087.94. Following the completion of the sale, the director owned 108,940 shares of the company’s stock, valued at approximately $7,430,797.40. This represents a 20.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Edward H. Frank sold 2,500 shares of the firm’s stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $77.39, for a total transaction of $193,475.00. Following the completion of the transaction, the director directly owned 142,504 shares of the company’s stock, valued at $11,028,384.56. This represents a 1.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 4,306,150 shares of company stock worth $271,865,732. Insiders own 11.90% of the company’s stock.

Institutional Investors Weigh In On Rocket Lab

A number of institutional investors and hedge funds have recently modified their holdings of the company. Wilmington Savings Fund Society FSB acquired a new position in Rocket Lab during the third quarter worth approximately $25,000. Hara Capital LLC acquired a new stake in shares of Rocket Lab in the third quarter valued at approximately $25,000. Aventura Private Wealth LLC bought a new position in shares of Rocket Lab during the 4th quarter worth approximately $25,000. UMB Bank n.a. increased its holdings in shares of Rocket Lab by 352.5% during the 3rd quarter. UMB Bank n.a. now owns 543 shares of the rocket manufacturer’s stock worth $26,000 after acquiring an additional 423 shares during the last quarter. Finally, Sound Income Strategies LLC acquired a new stake in Rocket Lab during the 3rd quarter valued at $27,000. 71.78% of the stock is owned by institutional investors.

Key Stories Impacting Rocket Lab

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.