Despite sell-offs today, Rocket Lab stock is up more than 340% this year.
Rocket Lab USA (RKLB -11.63%) stock is falling in Monday’s trading. The company’s share price was down 11% as of 2:30 p.m. ET. Meanwhile, the S&P 500 index was up 0.1%, and the Nasdaq Composite index was up 0.8%.
Rocket Lab is losing ground in today’s trading following recent filings with the Securities and Exchange Commission (SEC) showing that company insiders had recently sold stock. Even with today’s pullback, the stock is still up more than 340% across 2024’s trading.
Some Rocket Lab insiders are cashing in on the stock’s incredible run
On Nov. 27, Rocket Lab submitted a series of filings to the SEC detailing stock sales by four company insiders. Chief Operating Officer Frank Klein sold 35,968 shares on Nov. 25. The same day, CFO Adam Spice sold 62,511 shares, and general counsel Arjun Kampani sold 28,562 shares. The following day, board director Merline Saintil sold 50,000 shares. The latest round of stock sales follows selling moves made by other company insiders on the heels of explosive growth for the company’s valuation.
What’s next for Rocket Lab?
Rocket Lab has soared across this year’s trading as the company has continued to land new defense and space commercialization deals. The company’s share price has also gained ground in conjunction with expectations that the incoming Trump administration will support the space industry, create a more lax regulatory climate, and help bring about a new round of corporate tax cuts.
While the stock is seeing significant sell-offs in Monday’s trading, there was actually some significant, positive business-related news for the company over the weekend. Rocket Lab has secured $23.9 million in new contracts with the Department of Commerce to improve the production of compound semiconductors used in the operation of space-grade solar cells for satellites. So while the company is valued at roughly 28 times this year’s expected sales and has a highly growth-dependent valuation, there’s evidence that demand for its technologies is surging.
