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

Rocket Companies, Inc. (NYSE:RKT) was the recipient of some unusual options trading on Friday. Traders purchased 80,083 call options on the company. This is an increase of approximately 48% compared to the average daily volume of 54,209 call options.

Institutional Investors 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 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 valued at $1,689,287,000 after purchasing an additional 64,311,040 shares in the last quarter. Amundi boosted its stake in shares of Rocket Companies by 152.1% during the 1st quarter. Amundi now owns 13,725,878 shares of the company’s stock valued at $195,594,000 after buying an additional 8,280,463 shares during the last quarter. Prescott Group Capital Management L.L.C. acquired a new stake in shares of Rocket Companies during the fourth quarter worth approximately $4,259,000. Andra AP fonden increased its stake in shares of Rocket Companies by 48.0% in the first quarter. Andra AP fonden now owns 729,357 shares of the company’s stock worth $10,393,000 after buying an additional 236,632 shares during the last quarter. Finally, Strs Ohio increased its stake in shares of Rocket Companies by 1,224.3% in the fourth quarter. Strs Ohio now owns 79,552 shares of the company’s stock worth $1,540,000 after buying an additional 73,545 shares during the last quarter. 4.59% of the stock is owned by institutional investors and hedge funds.

Rocket Companies Stock Down 2.7%

NYSE:RKT traded down $0.38 during mid-day trading on Friday, hitting $13.86. The company had a trading volume of 15,926,820 shares, compared to its average volume of 28,744,939. The business has a fifty day simple moving average of $14.25 and a 200-day simple moving average of $14.82. The firm has a market capitalization of $39.25 billion, a price-to-earnings ratio of 99.00 and a beta of 2.19. Rocket Companies has a 1 year low of $12.17 and a 1 year high of $24.36. The company has a current ratio of 4.85, a quick ratio of 4.85 and a debt-to-equity ratio of 1.16.

Rocket Companies (NYSE:RKT) last issued its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share for the quarter, hitting the consensus estimate of $0.16. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%.The company had revenue of $2.76 billion during the quarter, compared to the consensus estimate of $2.81 billion. During the same quarter in the prior year, the business earned $0.04 earnings per share. The company’s revenue was up 91.9% compared to the same quarter last year. Equities analysts forecast that Rocket Companies will post 0.53 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently commented on RKT. Benchmark cut their price objective on Rocket Companies from $21.00 to $19.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Royal Bank Of Canada reissued a “sector perform” rating and set a $16.00 target price (up from $15.00) on shares of Rocket Companies in a research report on Wednesday, August 12th. Zacks Research upgraded shares of Rocket Companies from a “strong sell” rating to a “hold” rating in a report on Tuesday, May 12th. Wells Fargo & Company reduced their price target on shares of Rocket Companies from $17.00 to $15.00 and set an “equal weight” rating on the stock in a research report on Friday, August 7th. Finally, Stephens decreased their price objective on shares of Rocket Companies from $22.50 to $20.00 and set an “overweight” rating for the company in a research note on Friday, August 7th. Ten research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, Rocket Companies currently has an average rating of “Moderate Buy” and a consensus target price of $19.87.

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.