Rocket Companies Target of Unusually High Options Trading (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) was the target of some unusual options trading on Tuesday. Investors acquired 72,848 call options on the stock. This is an increase of 49% compared to the typical volume of 48,729 call options.

Institutional Trading of Rocket Companies

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in shares of Rocket Companies by 280.3% during the 4th 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 in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Rocket Companies by 11,636.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 26,189,869 shares of the company’s stock valued at $507,037,000 after buying an additional 25,966,725 shares during the period. Morgan Stanley grew its position in Rocket Companies by 461.2% during the fourth quarter. Morgan Stanley now owns 27,009,279 shares of the company’s stock worth $522,900,000 after buying an additional 22,196,782 shares in the last quarter. State Street Corp grew its position in Rocket Companies by 323.9% during the fourth quarter. State Street Corp now owns 20,688,336 shares of the company’s stock worth $400,526,000 after buying an additional 15,807,776 shares in the last quarter. Finally, ValueAct Holdings L.P. increased its stake in Rocket Companies by 55.1% in the 4th quarter. ValueAct Holdings L.P. now owns 39,380,652 shares of the company’s stock worth $762,409,000 after acquiring an additional 13,985,025 shares during the last quarter. Institutional investors own 4.59% of the company’s stock.

Rocket Companies Stock Performance

RKT stock traded up $0.56 during midday trading on Tuesday, reaching $14.24. 13,906,529 shares of the company’s stock traded hands, compared to its average volume of 29,108,561. The firm has a market capitalization of $40.31 billion, a PE ratio of 286.08 and a beta of 2.19. Rocket Companies has a 52 week low of $12.17 and a 52 week high of $24.36. The company has a debt-to-equity ratio of 1.13, a quick ratio of 4.37 and a current ratio of 4.37. The company has a 50-day moving average price of $14.05 and a two-hundred day moving average price of $15.68.

Rocket Companies (NYSE:RKT) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.03. The company had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.76 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The firm’s revenue for the quarter was up 167.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.04 EPS. As a group, equities analysts anticipate that Rocket Companies will post 0.54 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Wells Fargo & Company lowered their target price on Rocket Companies from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 9th. Barclays decreased their price objective on Rocket Companies from $19.00 to $17.00 and set an “overweight” rating for the company in a report on Tuesday, July 7th. Benchmark started coverage on Rocket Companies in a research note on Monday, June 29th. They issued a “buy” rating and a $21.00 price objective on the stock. Weiss Ratings raised shares of Rocket Companies from a “sell (d)” rating to a “hold (c)” rating in a report on Wednesday, May 13th. Finally, Keefe, Bruyette & Woods cut their target price on shares of Rocket Companies from $21.00 to $20.00 and set an “outperform” rating for the company in a research report on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $20.73.

Rocket Companies Company Profile

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.