Rocket Companies (NYSE:RKT) Stock Price Down 15.7% – Should You Sell?

Rocket Companies, Inc. (NYSE:RKT) shares dropped 15.7% on Friday . The stock traded as low as $17.91 and last traded at $17.5140. Approximately 5,998,691 shares were traded during mid-day trading, a decline of 80% from the average daily volume of 30,434,291 shares. The stock had previously closed at $20.77.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Wall Street Zen cut Rocket Companies from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th. Oppenheimer began coverage on shares of Rocket Companies in a report on Thursday, November 13th. They set an “outperform” rating and a $25.00 price objective on the stock. Royal Bank Of Canada boosted their target price on shares of Rocket Companies from $17.00 to $20.00 and gave the stock a “sector perform” rating in a research report on Wednesday, October 8th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Rocket Companies in a report on Monday, October 13th. Finally, The Goldman Sachs Group reissued a “neutral” rating and set a $22.00 price objective (up from $16.00) on shares of Rocket Companies in a report on Wednesday, October 29th. Five analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Rocket Companies currently has a consensus rating of “Hold” and an average price target of $20.50.

Rocket Companies Stock Down 16.5%

The company has a debt-to-equity ratio of 2.16, a quick ratio of 19.68 and a current ratio of 19.68. The business’s 50 day moving average price is $20.22 and its 200 day moving average price is $18.49. The firm has a market cap of $36.52 billion, a price-to-earnings ratio of 217.06 and a beta of 2.29.

Rocket Companies (NYSE:RKT) last issued its quarterly earnings data on Thursday, October 30th. The company reported $0.07 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.07. Rocket Companies had a negative net margin of 1.77% and a positive return on equity of 2.83%. The business had revenue of $1.78 billion during the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter in the prior year, the firm posted $0.08 earnings per share. The company’s revenue was up 148.1% compared to the same quarter last year. On average, equities analysts forecast that Rocket Companies, Inc. will post 0.15 EPS for the current year.

Insider Buying and Selling

In other news, Director Matthew Rizik sold 2,500 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $22.99, for a total value of $57,475.00. Following the completion of the sale, the director directly owned 1,038,536 shares in the company, valued at $23,875,942.64. The trade was a 0.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders sold 40,000 shares of company stock valued at $779,425 over the last quarter. 92.64% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rocket Companies

A number of large investors have recently added to or reduced their stakes in RKT. Vanguard Group Inc. grew its position in shares of Rocket Companies by 280.3% in the fourth quarter. Vanguard Group Inc. now owns 87,256,540 shares of the company’s stock valued at $1,689,287,000 after purchasing an additional 64,311,040 shares during the period. ValueAct Holdings L.P. boosted its holdings in Rocket Companies by 67.9% in the 3rd quarter. ValueAct Holdings L.P. now owns 25,395,627 shares of the company’s stock worth $492,167,000 after buying an additional 10,270,018 shares during the last quarter. Boston Partners increased its stake in Rocket Companies by 6.2% during the 2nd quarter. Boston Partners now owns 14,560,706 shares of the company’s stock worth $206,610,000 after buying an additional 856,367 shares in the last quarter. Durable Capital Partners LP acquired a new position in shares of Rocket Companies during the third quarter valued at approximately $213,010,000. Finally, Wellington Management Group LLP lifted its position in shares of Rocket Companies by 30.6% in the third quarter. Wellington Management Group LLP now owns 6,298,220 shares of the company’s stock valued at $122,060,000 after acquiring an additional 1,474,040 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company’s core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.