Rocket Companies (NYSE:RKT) Stock Price Up 7% – Here’s Why

Rocket Companies, Inc. (NYSE:RKT)’s share price rose 7% on Thursday . The stock traded as high as $15.08 and last traded at $15.0350. Approximately 17,680,802 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 29,239,139 shares. The stock had previously closed at $14.05.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on RKT. Zacks Research raised Rocket Companies from a “strong sell” rating to a “hold” rating in a research report on Tuesday, May 12th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $16.00 price target (up from $15.00) on shares of Rocket Companies in a research report on Wednesday. Wells Fargo & Company decreased their price target on Rocket Companies from $17.00 to $15.00 and set an “equal weight” rating for the company in a research note on Friday, August 7th. BTIG Research restated a “neutral” rating on shares of Rocket Companies in a research report on Tuesday, June 16th. Finally, Stephens cut their price objective on Rocket Companies from $22.50 to $20.00 and set an “overweight” rating on the stock in a research note on Friday, August 7th. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $19.87.

Rocket Companies Stock Down 1.7%

The company has a current ratio of 4.85, a quick ratio of 4.37 and a debt-to-equity ratio of 1.16. The stock’s 50-day moving average is $14.10 and its 200-day moving average is $15.21. The company has a market cap of $41.83 billion, a price-to-earnings ratio of 105.61 and a beta of 2.19.

Rocket Companies (NYSE:RKT) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.16 EPS for the quarter, hitting analysts’ consensus estimates of $0.16. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The business had revenue of $2.76 billion during the quarter, compared to analysts’ expectations of $2.81 billion. During the same period last year, the company posted $0.04 earnings per share. The business’s quarterly revenue was up 91.9% on a year-over-year basis. On average, analysts anticipate that Rocket Companies, Inc. will post 0.54 earnings per share for the current fiscal year.

Institutional Trading of Rocket Companies

Several large investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in Rocket Companies by 280.3% during the 4th quarter. Vanguard Group Inc. now owns 87,256,540 shares of the company’s stock worth $1,689,287,000 after buying an additional 64,311,040 shares during the period. Price T Rowe Associates Inc. MD grew its stake in Rocket Companies by 11,636.8% in 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 acquiring an additional 25,966,725 shares during the period. Morgan Stanley grew its stake in Rocket Companies by 461.2% in the fourth quarter. Morgan Stanley now owns 27,009,279 shares of the company’s stock valued at $522,900,000 after acquiring an additional 22,196,782 shares during the period. State Street Corp increased its holdings in shares of Rocket Companies by 323.9% during the fourth quarter. State Street Corp now owns 20,688,336 shares of the company’s stock valued at $400,526,000 after acquiring an additional 15,807,776 shares in the last quarter. Finally, ValueAct Holdings L.P. increased its holdings in shares of Rocket Companies by 55.1% during the fourth quarter. ValueAct Holdings L.P. now owns 39,380,652 shares of the company’s stock valued at $762,409,000 after acquiring an additional 13,985,025 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

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.