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

Rocket Companies, Inc. (NYSE:RKT) was the recipient of unusually large options trading on Thursday. Traders bought 93,026 call options on the company. This is an increase of 84% compared to the typical volume of 50,517 call options.

Institutional Investors Weigh In On Rocket Companies

A number of institutional investors and hedge funds have recently bought and sold shares of RKT. Royal Bank of Canada increased its holdings in shares of Rocket Companies by 48.9% in the 1st quarter. Royal Bank of Canada now owns 69,641 shares of the company’s stock worth $841,000 after buying an additional 22,861 shares during the last quarter. Amundi lifted its holdings in shares of Rocket Companies by 3.1% during the 1st quarter. Amundi now owns 33,416 shares of the company’s stock worth $403,000 after acquiring an additional 997 shares during the last quarter. AQR Capital Management LLC grew its position in Rocket Companies by 1,086.5% in the first quarter. AQR Capital Management LLC now owns 400,467 shares of the company’s stock worth $4,734,000 after acquiring an additional 366,716 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Rocket Companies by 12.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company’s stock worth $4,473,000 after acquiring an additional 40,326 shares in the last quarter. Finally, Creative Planning grew its position in Rocket Companies by 17.2% in the second quarter. Creative Planning now owns 18,215 shares of the company’s stock worth $258,000 after acquiring an additional 2,679 shares in the last quarter. 4.59% of the stock is owned by hedge funds and other institutional investors.

Rocket Companies Price Performance

NYSE:RKT traded up $0.28 during trading hours on Thursday, hitting $14.88. 44,986,894 shares of the company’s stock traded hands, compared to its average volume of 31,779,308. Rocket Companies has a 52 week low of $12.17 and a 52 week high of $24.36. The business’s fifty day simple moving average is $14.13 and its two-hundred day simple moving average is $16.34. The company has a quick ratio of 4.37, a current ratio of 4.37 and a debt-to-equity ratio of 1.13. The firm has a market cap of $42.10 billion, a P/E ratio of 297.62 and a beta of 2.16.

Rocket Companies (NYSE:RKT) last announced its earnings results on Thursday, May 7th. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.03. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The business had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.76 billion. During the same period in the prior year, the company earned $0.04 EPS. The company’s quarterly revenue was up 167.1% compared to the same quarter last year. On average, research analysts anticipate that Rocket Companies will post 0.59 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on RKT. JPMorgan Chase & Co. decreased their price objective on Rocket Companies from $16.00 to $15.50 and set a “neutral” rating on the stock in a research note on Monday. Weiss Ratings upgraded Rocket Companies from a “sell (d)” rating to a “hold (c)” rating in a research report on Wednesday, May 13th. Keefe, Bruyette & Woods lowered their price target on shares of Rocket Companies from $21.00 to $20.00 and set an “outperform” rating on the stock in a report on Thursday, June 25th. Zacks Research upgraded shares of Rocket Companies from a “strong sell” rating to a “hold” rating in a research report on Tuesday, May 12th. Finally, Morgan Stanley raised shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $18.00 to $19.00 in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $20.73.

Rocket Companies News Summary

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

• Positive Sentiment: Morgan Stanley upgraded Rocket Companies to a buy-equivalent rating, arguing the stock can still outperform even as mortgage demand weakens. This mortgage stock should rise even as demand for loans falls, Morgan Stanley says
• Positive Sentiment: Morgan Stanley also set a $19 price target, which reinforced the bullish case as Rocket trades near its 52-week low valuation. Rocket Companies Upgraded as Valuation Nears a 52-Week Low
• Positive Sentiment: Traders bought 93,026 call options on Rocket Companies, far above typical volume, signaling rising speculative bullish sentiment.
• Neutral Sentiment: Recent Redfin updates highlight mixed housing conditions, including fewer pending home sales and uneven pricing trends, which may create uncertainty but also underscore Rocket’s exposure to the housing market. What Rocket Companies (RKT)’s Weather-Driven Redfin Integration Means For Shareholders
• Neutral Sentiment: Redfin’s partnership with The Weather Company and related housing-market reports are product and market updates, but they do not appear to be immediate stock-moving fundamentals. Redfin Partners With The Weather Company to Bring Weather Data to Every Home Listing
• Neutral Sentiment: Redfin’s report showing better weather as a relocation driver and college towns outperforming nationwide housing trends provides context on consumer behavior, but the stock impact is indirect. Better Weather Is the Top Reason Americans Are Planning Out-of-State Moves, Outranking Affordability

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.