SG Americas Securities LLC has significantly reduced its investment in Rocket Lab Corporation (NASDAQ:RKLB – Free Report) by 36.5% during the third quarter, as shown in its latest filing with the Securities and Exchange Commission (SEC). Following the sale of 42,259 shares, SG Americas now holds a total of 73,384 shares valued at approximately $3.52 million.
Meanwhile, other institutional investors have adjusted their positions in Rocket Lab. AQR Capital Management LLC increased its stake by 114% in the first quarter, acquiring 92,849 additional shares for a total of 174,308 shares worth about $3.12 million. NewEdge Advisors LLC made an impressive 1,812% increase in its holdings, adding over 34,000 shares to reach a total of 36,807 shares valued at $658,000. Similarly, Jones Financial Companies Lllp expanded its ownership by 53.8%, while UBS Asset Management grew its position by 13.3%, holding nearly 774,000 shares that amount to roughly $13.83 million. Overall, institutional investors now control 71.78% of Rocket Lab’s stock.
Recent developments indicate a positive outlook for Rocket Lab. The company has secured substantial government contracts, including an $816 million prime contract with the Space Force, generating optimism among investors. Options-research firm Schaeffer has indicated that Rocket Lab is “ready to roar higher in 2026,” reflecting bullish sentiment and increased interest from active traders. Moreover, Rocket Lab has been recognized as one of the early momentum stocks for 2026, largely attributed to sector-wide trends rather than individual company fundamentals.
However, there are concerns stemming from significant insider selling. Recently, the CFO sold about $103.1 million worth of shares, followed by other insiders, leading to a market pullback. Analysts have noted the potential impact of these sales, which presents a near-term challenge for Rocket Lab’s share price. Additionally, some experts question the company’s current valuation, particularly regarding the risks associated with its profitability and contract execution.
On the performance side, Rocket Lab’s shares traded at $84.85 at the start of the week, showcasing a healthy growth trajectory after hitting a 52-week high of $89.87 earlier. The company reported third-quarter earnings of $155.08 million, exceeding analysts’ expectations, with a year-over-year revenue increase of 48%. Looking forward, analysts predict Rocket Lab will post a loss of -0.38 EPS for the fiscal year, but the ongoing developments and contract wins could signal a turnaround ahead.
Overall, while there are challenges linked to insider sales and valuation uncertainties, Rocket Lab’s strategic position within the aerospace sector and its contract successes provide a beacon of hope for future growth and increased investor confidence.