Rocket Lab (NASDAQ:RKLB) Shares Down 7.5% – Here’s What Happened

Rocket Lab Corporation (NASDAQ:RKLB)’s share price dropped 7.5% during mid-day trading on Friday . The company traded as low as $69.40 and last traded at $70.86. Approximately 18,133,974 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 23,029,789 shares. The stock had previously closed at $76.58.

Key Headlines Impacting Rocket Lab

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

• Positive Sentiment: Solid commercial backlog and margin targets — Rocket Lab reports over $1.1 billion in contracted backlog and continues to grow Electron launch cadence, which supports its near-term revenue conversion and targeted non-GAAP margins (45%–50%). Rocket Lab Earnings Loom as Neutron Timeline Takes Center Stage
• Positive Sentiment: Government/defense demand rising — recent dedicated HASTE mission for the Defense Innovation Unit and an accelerating cadence of hypersonic test launches highlight growing defense revenues that can provide stable, high-margin work. Rocket Lab Earnings Loom as Neutron Timeline Takes Center Stage
• Neutral Sentiment: Pivotal earnings event next week — the Feb. 26 Q4 report and conference call are the key catalysts; management’s update on Neutron timing and Q4 versus guidance execution will likely determine near-term direction. Rocket Lab Earnings Loom as Neutron Timeline Takes Center Stage
• Neutral Sentiment: Long-term bull case remains debated — some commentators see the recent development hurdle as a buying opportunity for long-term upside, but outcomes hinge on execution and Neutron progress. Should You Buy Rocket Lab Before Feb. 26
• Negative Sentiment: Neutron development setback — a Stage 1 tank rupture during qualification testing has injected timing uncertainty into the Neutron maiden flight schedule and is a primary reason for recent selling pressure. Rocket Lab Earnings Loom as Neutron Timeline Takes Center Stage
• Negative Sentiment: Analysts revising models and targets — several analysts have updated coverage and price targets after the Neutron news, increasing near-term headline risk and contributing to volatility. Why Analysts Are Rewriting The Rocket Lab (RKLB) Story After New Targets And Neutron Setbacks
• Negative Sentiment: Sector headwinds and capital rotation — traders cite tech/space sector rotation and risk-off flows as amplifying the pullback; this broader market context is pressuring RKLB alongside company-specific concerns. Why Are Rocket Lab Shares Sliding On Friday?

Analyst Upgrades and Downgrades

RKLB has been the subject of several research analyst reports. Citigroup reissued a “market perform” rating on shares of Rocket Lab in a report on Wednesday, November 12th. Wall Street Zen upgraded Rocket Lab from a “sell” rating to a “hold” rating in a report on Sunday, February 8th. The Goldman Sachs Group raised their price objective on Rocket Lab from $47.00 to $69.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 20th. Zacks Research lowered shares of Rocket Lab from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 10th. Finally, TD Cowen reissued a “buy” rating on shares of Rocket Lab in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $72.92.

Rocket Lab Stock Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.83 and a current ratio of 3.18. The stock has a 50 day moving average of $76.97 and a 200 day moving average of $60.21. The stock has a market capitalization of $37.85 billion, a P/E ratio of -186.47 and a beta of 2.16.

Insider Buying and Selling at Rocket Lab

In related news, insider Frank Klein sold 100,000 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $72.95, for a total value of $7,295,000.00. Following the sale, the insider owned 1,169,487 shares of the company’s stock, valued at $85,314,076.65. This trade represents a 7.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Adam C. Spice sold 1,365,665 shares of Rocket Lab stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $75.50, for a total transaction of $103,107,707.50. Following the completion of the sale, the chief financial officer owned 1,359,568 shares in the company, valued at approximately $102,647,384. This represents a 50.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 4,290,517 shares of company stock valued at $271,240,100. Corporate insiders own 11.90% of the company’s stock.

Hedge Funds Weigh In On Rocket Lab

Several hedge funds and other institutional investors have recently made changes to their positions in RKLB. Arizona State Retirement System boosted its holdings in shares of Rocket Lab by 13.6% in the third quarter. Arizona State Retirement System now owns 127,794 shares of the rocket manufacturer’s stock valued at $6,123,000 after acquiring an additional 15,307 shares in the last quarter. Cadent Capital Advisors LLC bought a new stake in Rocket Lab during the third quarter worth approximately $668,000. Connor Clark & Lunn Investment Management Ltd. lifted its position in Rocket Lab by 44.7% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 992,777 shares of the rocket manufacturer’s stock worth $35,512,000 after purchasing an additional 306,713 shares during the period. Orion Porfolio Solutions LLC bought a new position in Rocket Lab during the 2nd quarter valued at $1,009,000. Finally, Norges Bank bought a new position in Rocket Lab during the 2nd quarter valued at $164,751,000. 71.78% of the stock is currently owned by institutional investors and hedge funds.

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.