Four Rocket Lab insiders sold roughly $18 million worth of stock after the company’s shares surged amid excitement surrounding SpaceX’s planned IPO.
Rocket Lab stock has gone parabolic ahead of SpaceX’s highly anticipated initial public offering. Amid the blistering rally, four insiders including the company’s chief operating officer sold stock on the same day.
On May 28, general counsel Arjun Kampani sold 23,804 shares at prices ranging from $142.76 to $150.42 for a total of $3.5 million. The same day, Brad Clevenger, the company’s vice president of space systems, shed 3,500 shares at an average price of $146.67, or $513,345 in total.
Those two sales were overshadowed by even larger transactions. Frank Klein, Rocket Lab’s chief operations officer, sold 36,860 shares on May 28, amounting to roughly $5.4 million of stock.
Director Alex Slusky was behind the biggest sale. On May 28, Slusky unloaded 60,000 shares at prices ranging from $149 to $150, or nearly $9 million in total. Slusky heads Vector Capital, the firm behind the shell company that took Rocket Lab public in 2021.
Attention around Rocket Lab has reached a fever pitch ahead of SpaceX’s public listing, infusing volatility into the shares. After rallying in May, space stocks traded lower to kick off the new month, with Rocket Lab falling 15% to $122.39 on Monday.
Although the stock rebounded slightly in the following session, it has fallen even further since then, at one point trading below $114 on Wednesday.
The decline came as investors reassessed valuations across the space sector following a sharp run-up in shares. On Monday, Jefferies downgraded Redwire to Hold from Buy. Rocket Lab and AST SpaceMobile have also faced scrutiny for their rich valuations despite remaining unprofitable.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com