TLDR
- Rocket Lab stock hit record high of $86.03 before falling 2.3% after CFO sold $103 million in shares
- Company won $816 million Space Force contract in December for 18 missile-defense satellites
- Stock has gained 244% over past year and 20% year-to-date, pushing market cap to $46 billion
- Q3 revenue rose 48% to $155 million but company remains unprofitable with negative margins
- Analyst average price target of $61.25 sits 27% below current trading price near $84
Rocket Lab shares reached a record high of $86.03 on Tuesday before falling 2.3% on Wednesday after company insiders sold more than $110 million in stock. CFO Adam C. Spice sold 1,365,665 shares for approximately $103 million on January 5, while insider Frank Klein sold 100,000 shares for $7.3 million on January 2.
The aerospace company’s market capitalization now stands at nearly $46 billion. Shares have climbed 244% over the past year and more than 2,200% over the last three years.
The recent rally accelerated after Rocket Lab announced an $816 million prime contract from the U.S. Space Force on December 19. The award covers design and manufacturing of 18 missile-defense satellites for the Tracking Layer Tranche 3 program.
This marks the largest contract in Rocket Lab’s history. The deal positions the company as a prime contractor for national security space missions.
What Rocket Lab Does
Rocket Lab provides launch services, spacecraft manufacturing, satellite components, and space systems for commercial and government customers. The company operates Electron, a small-lift orbital rocket that has become the second-most frequently launched U.S. rocket.
The company also builds complete spacecraft solutions including satellite design, flight software, and mission operations. Rocket Lab is developing Neutron, a medium-lift launch vehicle designed for large satellite constellations and national security missions.
In the third quarter of 2025, Rocket Lab reported revenue of $155.08 million, up 48% from the same period in 2024. The company beat analyst expectations of $152.45 million in revenue.
Rocket Lab posted a loss of $0.03 per share for the quarter, better than the expected loss of $0.05 per share. The company remains unprofitable with a negative net margin of 35.64%.
Analyst Ratings and Valuation Concerns
Analysts currently rate Rocket Lab as a “Moderate Buy” with an average price target of $61.25. That target sits about 27% below the stock’s recent trading price near $84.
The company trades at a price-to-sales ratio near 83. Rocket Lab’s next earnings report is scheduled for February 26, covering the fourth quarter of 2025.
Space and defense stocks have attracted strong investor interest in early 2026. Capital has rotated into the sector following speculation about a potential SpaceX initial public offering later this year.
Rocket Lab consolidated near the $70 level in recent weeks before breaking through to new highs. The stock cleared resistance levels from October and December.
Major institutional investors have increased their positions in recent months. Vanguard Group raised its stake by 5.4% to 41.8 million shares worth $2 billion as of the third quarter.
Baillie Gifford increased its holdings by 176.1% to 12.1 million shares. Capital World Investors added 9.4% to reach 14.5 million shares valued at $692.9 million.
The next major catalyst for Rocket Lab will be progress updates on the Neutron rocket development. A successful maiden launch would expand the company’s addressable market for commercial and government missions.
Trading volume on Wednesday reached 28.3 million shares, down 17% from the average daily volume of 34.2 million shares. The stock traded as low as $81.85 during the session before closing at $84.07.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
