Rocket Lab Shares Climb After Archimedes Vacuum Engine Test, While Insider Selling Tops $94 Million

Shares gain 3.7% after successful Archimedes vacuum engine test, but remain 47.6% below 52-week high amid $896M insider selling and $8B Iridium takeover uncertainty.

Rocket Lab’s stock found some relief on July 14 after the company successfully completed a long-duration burn test of its Archimedes vacuum engine (AVac) for the Neutron rocket’s upper stage. Shares traded at €70.10, a 3.7% gain from Monday’s close of €67.60, clawing back a fraction of the steep losses that had piled up over the prior week.

The bounce offered a brief reprieve from one of the sharpest downturns in recent months. The stock had fallen for five consecutive sessions, shedding roughly 19% and wiping out about $12 billion in market capitalization from its highs. On a 30-day view, the decline still stands at 25.74%, and even after the test-driven rally the share price remains 47.61% below the 52-week high of €133.80 reached on May 27.

The AVac engine test is a critical milestone for the Neutron programme. The vacuum-optimised version delivers roughly 20% more thrust than its first-stage counterpart and stands about 2.5 meters taller. To simulate high-altitude conditions, engineers used a "stub skirt" attachment during the burn. CEO Peter Beck has targeted the first Neutron launch for the fourth quarter of 2026. The 141-foot reusable rocket is designed to carry up to 13,000 kilograms to low Earth orbit and features a novel payload fairing dubbed "Hungry Hippo".

But while the engineering progress earned a cheer from the market, the same trading session was overshadowed by the scale of insider selling. Between July 6 and July 8, the Equatorial Trust — a family foundation controlled by Beck — sold 3,275,779 shares in a series of open-market transactions. Beck himself personally disposed of an additional 986,197 shares on July 6 at an average price of $95.33, generating proceeds of roughly $94 million. Over the past 90 days, total insider sales at Rocket Lab have reached approximately $896 million, with Beck as the dominant seller. The trades were executed under a Rule 10b5-1 plan established in March 2026, meaning they were predetermined, but the sheer magnitude has weighed on sentiment.

The Iridium Communications takeover, valued at $8 billion in cash and stock, adds another layer of uncertainty. The deal includes a collar mechanism: if Rocket Lab’s stock trades between $67.50 and $112.50, Iridium shareholders will receive approximately $54 per share; below $67.50, the exchange ratio locks at 0.4000. Financing comes from a $3.6 billion bridge loan arranged by Deutsche Bank and Wells Fargo, due by June 28, 2027. Iridium brings 66 low-Earth-orbit satellites, about 2.5 million subscribers, and 2025 revenue of $871.7 million with a 57% EBITDA margin. Rocket Lab’s own backlog stands at $2.2 billion, including a $816 million missile-defense contract and 18 satellites for the Space Development Agency. For the first quarter, revenue grew 63% year-over-year, while trailing twelve-month revenue growth was 45.8%. The next quarterly update is scheduled for August 6.

Despite the operational wins — including a record-breaking VICTUS-HAZE mission for the U.S. Space Force — the stock remains burdened by profitability concerns. The operating margin is negative 33.2%, and the price-to-earnings ratio stands at minus 268.7. Analysts remain cautiously bullish: 13 of 16 covering the stock rate it a buy, three say hold, and the average price target is $113, with a range of $60 to $135. Morgan Stanley has an overweight rating with a base case of $105 and a bull case of $293, while Goldman Sachs is more cautious with a hold and $76 target.

Technically, the stock is flashing oversold signals. The relative strength index sits at 37.3, and the share price is 25.85% below its 50-day moving average of €94.54, though it remains 4.22% above the 200-day line at €67.26. Rocket Lab was added to the Nasdaq 100 on June 22, a milestone that has contributed to elevated volatility — the annualised volatility stands at 95.86%. The market capitalisation is approximately €44.36 billion, reflecting both the promise of a vertically integrated space company and the risks inherent in merging a high-growth rocket builder with a satellite communications operator during a period of insider liquidation.