Rocket Companies Sees Unusually Large Options Volume (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) was the target of unusually large options trading on Thursday. Traders acquired 81,651 call options on the stock. This is an increase of approximately 38% compared to the typical daily volume of 59,141 call options.

Rocket Companies Trading Down 2.3%

Shares of Rocket Companies stock opened at $12.28 on Friday. Rocket Companies has a 52-week low of $12.17 and a 52-week high of $24.36. The stock’s 50-day simple moving average is $13.78 and its 200 day simple moving average is $14.29. The stock has a market capitalization of $34.76 billion, a P/E ratio of 87.68, a P/E/G ratio of 3.45 and a beta of 2.20. The company has a debt-to-equity ratio of 1.16, a quick ratio of 4.85 and a current ratio of 4.85.

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 analysts’ consensus estimates of $0.16. The firm had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.81 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The company’s quarterly revenue was up 91.9% on a year-over-year basis. During the same quarter last year, the business earned $0.04 earnings per share. As a group, research analysts anticipate that Rocket Companies will post 0.52 EPS for the current year.

Wall Street Analyst Weigh In

RKT has been the subject of several research reports. Wells Fargo & Company reduced their price target on shares of Rocket Companies from $17.00 to $15.00 and set an “equal weight” rating for the company in a research report on Friday, August 7th. Barclays dropped their target price on shares of Rocket Companies from $19.00 to $17.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 7th. Stephens reduced their target price on shares of Rocket Companies from $22.50 to $20.00 and set an “overweight” rating for the company in a research report on Friday, August 7th. BTIG Research restated a “neutral” rating on shares of Rocket Companies in a research note on Tuesday, June 16th. Finally, Morgan Stanley raised shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $18.00 to $19.00 in a report on Thursday, July 16th. Nine analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $19.57.

Insider Transactions at Rocket Companies

In other Rocket Companies news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $13.11, for a total value of $2,949,750.00. Following the completion of the transaction, the insider owned 7,953,027 shares in the company, valued at $104,264,183.97. This represents a 2.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 57.68% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Smithfield Trust Co bought a new stake in Rocket Companies during the 4th quarter worth approximately $32,000. Key Financial Inc bought a new position in shares of Rocket Companies in the fourth quarter worth $32,000. Cassaday & Co Wealth Management LLC bought a new position in shares of Rocket Companies in the first quarter worth $34,000. Summit Securities Group LLC purchased a new stake in shares of Rocket Companies in the first quarter worth $60,000. Finally, Leonteq Securities AG purchased a new stake in shares of Rocket Companies in the 4th quarter valued at about $71,000. Institutional investors own 4.59% of the company’s stock.

Rocket Companies News Roundup

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Barclays reiterated its Buy rating on RKT, supporting the view that Rocket Companies can benefit from a potential recovery in mortgage activity. Barclays Sticks to Their Buy Rating for Rocket Companies
• Positive Sentiment: Investors purchased about 81,651 call options, roughly 38% above typical daily volume, indicating increased speculative interest in a potential rebound.
• Positive Sentiment: Zacks identified Rocket Companies as one of the mortgage-related services stocks best positioned to navigate industry headwinds, despite high interest rates. 3 Mortgage and Related Services Stocks to Watch Amid Industry Headwinds
• Neutral Sentiment: Redfin reported that seller concessions were involved in 44.7% of U.S. home sales in August, highlighting better negotiating conditions for buyers. This could support transaction volume over time but also reflects a softer housing market. Nearly Half of Homebuyers Get Concessions From Sellers
• Negative Sentiment: Pending home sales fell 3.5% week over week to their lowest level in nearly three years. Weak purchase demand is a direct concern for Rocket Mortgage’s origination business. Redfin Reports Pending Home Sales Dip to Lowest Level in Nearly 3 Years
• Negative Sentiment: Rocket Mortgage CEO Jesse Bray sold 225,000 shares worth approximately $2.95 million. Although the sale was conducted under a pre-arranged Rule 10b5-1 plan, it may weigh on sentiment.
• Negative Sentiment: A bearish commentary cited valuation concerns and reasons to sell RKT, adding pressure while the stock trades below its 50-day and 200-day moving averages. 3 Reasons to Sell RKT and 1 Stock to Buy Instead

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based financial technology company that provides digital platforms and services for homeownership and personal finance. Its flagship business, Rocket Mortgage, originates and services residential mortgage loans through an online application and lending process, serving borrowers across the United States.

The company also operates Rocket Homes, a real estate platform that connects consumers with real estate agents and home-buying resources; Rocket Loans, which provides personal loans; and Rocket Money, a personal finance app designed to help users manage subscriptions, budgeting and other aspects of their financial lives.