Rocket Lab Corp. (NASDAQ: RKLB) extended its losing streak for a second consecutive session on Tuesday, falling 10.40 percent to close at $83.41 per share.
Investors appeared rattled after a regulatory filing revealed that CEO Peter Beck sold 5 million shares in the company on Monday, accelerating the broader selloff.
The share sale was executed as part of Beck’s pre-arranged selling plan, which was dated March 27, 2026, according to the regulatory disclosure.
The timing of the sale drew particular scrutiny given that the stock had recently clawed back to the $100 level following a major corporate announcement.
That announcement confirmed Rocket Lab is acquiring satellite communications provider Iridium Communications Inc. (NASDAQ: IRDM) in a deal valued at $8 billion.
Rocket Lab officially signed a definitive agreement with Iridium to acquire all issued and outstanding shares through a combination of stock and cash.
Under the terms of the deal, Iridium shareholders will receive $54 per share, representing a 24 percent premium over Iridium’s closing price of $43.52 on the Friday prior to the announcement.
Rocket Lab stated that the acquisition aligns with its broader ambition to build a vertically integrated space company capable of designing, building, launching, and operating its own satellite constellations.
The transaction is expected to give Rocket Lab a meaningful foothold in the space-based applications market, significantly expanding its operational scope beyond launch services.
Beck framed the deal as a transformational step, describing the combination of the two companies as a platform for pioneering next-generation capabilities.
“By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets,” Beck said.
Beck added that the company intends to go well beyond preserving what Iridium has built, stating: “We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers.”
Despite the strategic rationale behind the Iridium acquisition, the CEO’s share disposal has unsettled investors who had been buying into the stock’s recent momentum.
The back-to-back sessions of heavy losses highlight how sensitive RKLB’s elevated valuation is to insider activity, particularly at a critical juncture in the company’s growth trajectory.
