Rocket Lab USA (RKLB) Stock: Shares Reach Record High on $816M Pentagon Deal

TLDR

• Rocket Lab stock jumped over 6% on Wednesday, reaching a new record high of $91.80 as satellite stocks rallied
• The company secured an $816 million contract from the U.S. Space Development Agency, the largest in its history
• Cantor Fitzgerald analyst reaffirmed a Buy rating, calling Rocket Lab the top alternative to SpaceX
• The upcoming Neutron launch in early 2026 is seen as the most important catalyst for the stock
• Insiders sold roughly $262 million worth of shares over the past 90 days, including a major CFO sale

Rocket Lab shares climbed over 6% during Wednesday’s trading session, pushing the stock to a fresh all-time high of $91.80. The rally came as satellite-related stocks gained ground across the board.

Rocket Lab USA, Inc., RKLB

The surge followed rising geopolitical tensions tied to recent White House policy moves. Other satellite companies like Planet Labs and EchoStar also posted gains of around 6% during the same session.

Cantor Fitzgerald analyst Andres Sheppard maintained his Buy rating on Rocket Lab. He called the company the top commercial alternative to SpaceX.

Sheppard pointed to Rocket Lab’s strong execution and recent contract wins. The company posted a record third quarter and landed its biggest deal to date.

Major Contract Win Doubles Backlog

The U.S. Space Development Agency awarded Rocket Lab an $816 million contract. The deal effectively doubled the company’s total backlog.

Under the agreement, Rocket Lab will design and manufacture 18 satellites. These satellites will provide missile-warning, tracking, and defense capabilities in low Earth orbit.

The contract marks a major expansion of Rocket Lab’s business. The company continues to evolve beyond launch services into full-scale space infrastructure.

Rocket Lab completed 21 Electron launches in fiscal 2025. This represented the company’s highest annual total and brought its successful mission count to 79.

Neutron Launch Takes Center Stage

The first Neutron launch is expected in the first half of 2026. Sheppard identified this as the single most important catalyst for the stock.

Neutron is Rocket Lab’s medium-lift, reusable launch vehicle. Management expects the vehicle to reach the launchpad in Q1 2026, with its first flight following shortly after.

A successful Neutron launch could improve Rocket Lab’s unit economics. The vehicle would position the company as the only credible commercial alternative to SpaceX’s Falcon 9.

Sheppard noted potential risks including possible Neutron delays. Regulatory challenges and supply-chain disruptions also remain concerns.

Despite these risks, he expressed strong confidence in Rocket Lab’s proven track record. The company ranks as the third-most active launch provider globally and second in the U.S. behind SpaceX.

Rocket Lab reported revenue up 48% year-over-year in its most recent quarter. The company posted an EPS of -$0.03, beating analyst expectations of -$0.05.

The stock currently trades well above analyst consensus targets. The average price target sits at $61.25, suggesting a potential downside of over 20% from current levels.

Several analysts have recently upgraded the stock. KeyCorp raised its target to $75, while Baird set a target of $83 and Bank of America lifted its target to $60.

Corporate insiders sold approximately 4.2 million shares over the past 90 days. These sales totaled around $262 million.

CFO Adam Spice sold 1.365 million shares worth roughly $103 million. Director Nina Armagno sold 27,314 shares for about $1.86 million.

Rocket Lab has surged more than 250% over the past 12 months. The stock pulled back 2% in after-hours trading following Wednesday’s record high.

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