Rocket Lab (NASDAQ:RKLB) Shares Up 17.7% – Still a Buy?

Rocket Lab Corporation (NASDAQ:RKLB) shot up 17.7% on Friday . The company traded as high as $70.56 and last traded at $70.52. 51,210,244 shares traded hands during trading, an increase of 145% from the average session volume of 20,936,615 shares. The stock had previously closed at $59.92.

Key Headlines Impacting Rocket Lab

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

• Positive Sentiment: A landmark SDA prime contract worth $816 million to design and build 18 TRKT3 tracking satellites — Rocket Lab’s largest single award to date. The deal uses Rocket Lab’s vertically integrated Lightning platform, includes the Phoenix infrared sensor and StarLite protection sensors, and could add subsystem revenue that brings total capture value toward ~$1B; it builds on a prior $515M SDA award and meaningfully boosts the company’s government backlog and prime-contractor credentials. Rocket Lab Awarded $816M Prime Contract (GlobeNewswire)
• Positive Sentiment: Operational execution: Rocket Lab completed the STP‑S30 launch for the U.S. Space Force five months ahead of schedule and logged its 20th Electron launch of 2025 — a proof point for reliability, responsiveness and government customer trust that supports higher valuation multiples for launch & space-systems providers. Rocket Lab Executes Successful STP-S30 Launch (GlobeNewswire)
• Positive Sentiment: Sector tailwinds: renewed optimism in the space sector (including high-profile SpaceX IPO talk and renewed U.S. lunar policy) has repriced peers and benefited RKLB as one of the few scaled, public space names. That broader sentiment boost helps explain a rally beyond company-specific news. Rocket Lab’s Sharp Rebound (MarketBeat)
• Neutral Sentiment: Analyst coverage and price targets remain mixed-but-leaning-positive (multiple recent Buys/Overweights; median target noted around the low $60s), supporting demand but leaving room for divergence vs. the current market price. MarketBeat analyst coverage summary
• Neutral Sentiment: Major upcoming catalyst: Neutron (medium‑lift vehicle) remains the key longer-term growth and valuation inflection — a high-upside but execution‑sensitive event (maiden flight expected in 2026). Success would expand addressable market; failure or delays would weigh on expectations. Rocket Lab catalysts and Neutron (MarketBeat)
• Negative Sentiment: Insider selling: significant recent insider stock sales (including CEO and other executives) have been reported and could raise short‑term concern about share supply or management liquidity needs — a watch item for investors. Insider Selling Reports (American Banking News)
• Negative Sentiment: Program and concentration risks: large government awards concentrate revenue and carry schedule, performance and compliance risks; analysts and coverage note that delays or contract issues could materially affect near-term financials and stock performance. Quiver / SDA contract analysis

Analyst Upgrades and Downgrades

Several brokerages have recently commented on RKLB. Morgan Stanley reduced their target price on Rocket Lab from $68.00 to $67.00 and set an “equal weight” rating for the company in a research note on Wednesday, November 12th. Wall Street Zen cut shares of Rocket Lab from a “hold” rating to a “sell” rating in a research report on Saturday, December 13th. Baird R W upgraded shares of Rocket Lab to a “strong-buy” rating in a report on Thursday, October 16th. Cantor Fitzgerald reissued an “overweight” rating on shares of Rocket Lab in a research report on Wednesday, December 3rd. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $63.00 target price on shares of Rocket Lab in a report on Tuesday, November 25th. 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 company’s stock. According to data from MarketBeat.com, Rocket Lab has a consensus rating of “Moderate Buy” and an average target price of $58.17.

Rocket Lab Stock Up 17.7%

The stock has a fifty day moving average price of $54.50 and a two-hundred day moving average price of $47.19. The company has a market cap of $37.67 billion, a price-to-earnings ratio of -185.58 and a beta of 2.20. 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 released its quarterly 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. Rocket Lab had a negative net margin of 35.64% and a negative return on equity of 27.26%. The business had revenue of $155.08 million for the quarter, compared to the consensus estimate of $152.45 million. During the same period in the prior year, the company posted ($0.10) earnings per share. Rocket Lab’s revenue was up 48.0% compared to the same quarter last year. As a group, sell-side analysts expect that Rocket Lab Corporation will post -0.38 EPS for the current year.

Insider Activity at Rocket Lab

In other news, Director Merline Saintil sold 15,000 shares of Rocket Lab stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $65.00, for a total value of $975,000.00. Following the completion of the sale, the director directly owned 398,529 shares in the company, valued at approximately $25,904,385. The trade was a 3.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Peter Beck sold 1,560,254 shares of the business’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $57.47, for a total value of $89,667,797.38. Following the completion of the sale, the chief executive officer owned 939,746 shares of the company’s stock, valued at approximately $54,007,202.62. This trade represents a 62.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 2,697,171 shares of company stock valued at $149,644,782. 11.90% of the stock is currently owned by company insiders.

Institutional Trading of Rocket Lab

Several large investors have recently modified their holdings of the stock. Wilmington Savings Fund Society FSB acquired a new position in Rocket Lab in the third quarter valued at about $25,000. Hara Capital LLC bought a new position in Rocket Lab in the 3rd quarter valued at about $25,000. UMB Bank n.a. raised its position in shares of Rocket Lab by 352.5% in the 3rd quarter. UMB Bank n.a. now owns 543 shares of the rocket manufacturer’s stock valued at $26,000 after buying an additional 423 shares in the last quarter. Sound Income Strategies LLC bought a new stake in shares of Rocket Lab during the 3rd quarter worth approximately $27,000. Finally, Financial Consulate Inc. acquired a new stake in shares of Rocket Lab during the 3rd quarter worth approximately $35,000. 71.78% of the stock is owned by institutional investors and hedge funds.

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.