Rocket Lab USA Stock: Record Rally Continues in 2026 – What’s Driving the Surge?
- Why Is Rocket Lab USA’s Stock Skyrocketing?
- Analysts Go Bullish: Price Targets Soar
- The Elephant in the Room: Insider Selling Spree
- Rocket Lab’s Valuation: Too Hot to Handle?
- Institutional vs. Retail: Who’s Buying Now?
- FAQ: Your Burning Questions Answered
Rocket Lab USA’s stock is on a tear in 2026, fueled by a historic $1 billion U.S. Space Force contract that cements its role in defense. Analysts are bullish, with targets as high as $90, but insider sales raise eyebrows. Is this high-flying stock still a buy, or is it time to cash out? Let’s break it down.
Why Is Rocket Lab USA’s Stock Skyrocketing?
The company’s meteoric rise isn’t just hype—it’s backed by cold, hard contracts. In December 2025, Rocket Lab secured an $806 million base deal (with expansion options up to $1 billion) to build 18 missile-defense satellites for the U.S. Space Development Agency. This isn’t just pocket change; it’s a watershed moment that shifts Rocket Lab from "niche launch provider" to "national security heavyweight." Pair that with a flawless 2025 launch record (21/21 successful Electron missions), and you’ve got a stock that’s firing on all cylinders.
Analysts Go Bullish: Price Targets Soar
Wall Street’s playing catch-up. Needham just jacked its target from $63 to $90, while Stifel bumped theirs to $85. As of Friday’s close at $84.85, the stock’s up 211% YoY—leaving the average analyst target ($61.25) in the dust. "This isn’t your grandpa’s small-sat launcher anymore," quips a BTCC market strategist. "Their defense pivot changes the valuation game entirely."
The Elephant in the Room: Insider Selling Spree
While institutions like Invesco pile in, execs are cashing out. Over 90 days, insiders dumped $262.4 million worth of shares—including CCO Frank Klein’s $7.3 million January sale. Sure, revenue grew 48% last quarter, but with a forward P/S ratio of 34 for 2027, some wonder if the growth can justify the premium. "Insiders often sell for personal reasons," cautions an industry vet, "but when it’s this concentrated, it’s a yellow flag."
Rocket Lab’s Valuation: Too Hot to Handle?
Let’s crunch numbers. At 34x forward sales, Rocket Lab trades like a hypergrowth tech stock—not a aerospace/defense hybrid. For context, legacy players like Lockheed hover around 2x. The bet here? That Rocket Lab’s vertical integration (it builds satelliteslaunches them) justifies the multiple. "They’re the SpaceX of small-sat defense," argues a fund manager holding shares. "But execution risks remain."
Institutional vs. Retail: Who’s Buying Now?
Big money’s all in. Institutional ownership jumped 12% last quarter, while retail investors chase momentum. The twist? Options volume suggests pros are hedging bets. "The smart money’s playing both sides," notes a BTCC derivatives trader. "Calls for upside, puts as insurance."
FAQ: Your Burning Questions Answered
Is Rocket Lab profitable?
Not yet. They’re reinvesting heavily in capacity (see their new Virginia factory). EBITDA should turn positive by late 2027 per company guidance.
What’s the biggest risk?
Contract delays. Defense deals MOVE glacially—one slip could crater that premium valuation.
Should I buy at these levels?
This article does not constitute investment advice. That said, if you believe in their defense thesis and have a 5-year horizon, dips might appeal.
