Rocket Lab COO Frank Klein sells $3.18 million in stock for taxes

Rocket Lab's Chief Operations Officer Frank Klein divested $3.18 million worth of company stock on August 24, 2026. He sold 45,692 shares, with prices per share fluctuating between $69.5345 and $71.17. The current stock price is $66.18, experiencing a decline of around 9% over the past week and a significant drop of more than 56% from its 52-week high of $151.

According to InvestingPro analysis, the stock seems overvalued at its current trading level, despite Rocket Lab's lack of profitability over the last year. These sales were not random, but rather sell-to-cover transactions executed to fulfill tax withholding obligations due to vesting and settlement of restricted stock units previously granted to Klein.

Following these transactions, Klein now owns 961,295 shares of Rocket Lab common stock directly. Meanwhile, Rocket Lab has filed financial and pro forma statements with the Securities and Exchange Commission in anticipation of its pending acquisition of Iridium Communications. This merger will make Iridium an indirect wholly-owned subsidiary of Rocket Lab.

Despite recent turbulence in stock prices, Rocket Lab's second-quarter revenue exceeded consensus estimates by 1% and showed a notable 62% increase year-over-year. The company has projected third-quarter revenue to be 8% above consensus estimates. Analysts remain optimistic, with Needham raising its rating to Buy and setting a $120 price target, while KeyBanc maintains an Overweight rating with an 8% price increase target.

Cantor Fitzgerald has raised its price target from $96 to $122, highlighting Rocket Lab's record second-quarter revenue of roughly $234.1 million and progress on the Neutron rocket program, which is slated for its first launch later in the year. Citizens Investment Research has also raised its rating to Market Outperform, suggesting a $130 price target and emphasizing improved confidence in Neutron's execution and long-term margin potential.