Rocket Companies (NYSE:RKT) Shares Gap Up – What’s Next?

Rocket Companies, Inc. (NYSE:RKT)’s stock price gapped up prior to trading on Thursday. The stock had previously closed at $10.53, but opened at $10.97. Rocket Companies shares last traded at $11.1080, with a volume of 6,563,566 shares.

Analyst Ratings Changes

RKT has been the topic of several research reports. Keefe, Bruyette & Woods dropped their price objective on shares of Rocket Companies from $20.00 to $19.00 and set an “outperform” rating on the stock in a report on Monday, August 10th. Wells Fargo & Company set a $13.00 price objective on shares of Rocket Companies and gave the stock an “equal weight” rating in a research report on Tuesday, October 6th. JPMorgan Chase & Co. reduced their target price on Rocket Companies from $14.00 to $12.50 and set a “neutral” rating for the company in a research note on Monday, October 12th. Weiss Ratings upgraded Rocket Companies from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. Finally, Barclays decreased their target price on Rocket Companies from $17.00 to $15.00 and set an “overweight” rating for the company in a research report on Monday, October 5th. Eight equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $19.12.

Rocket Companies Trading Down 2.6%

The company has a quick ratio of 4.85, a current ratio of 4.85 and a debt-to-equity ratio of 1.16. The firm’s 50-day moving average price is $12.92 and its 200 day moving average price is $13.83. The company has a market capitalization of $30.54 billion, a P/E ratio of 77.05, a P/E/G ratio of 3.31 and a beta of 2.23.

Rocket Companies (NYSE:RKT) last announced its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting 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 for the quarter, compared to analysts’ expectations of $2.81 billion. During the same quarter in the previous year, the firm earned $0.04 earnings per share. Rocket Companies’s quarterly revenue was up 91.9% on a year-over-year basis. As a group, equities research analysts predict that Rocket Companies, Inc. will post 0.48 earnings per share for the current year.

Insider Activity at Rocket Companies

In related news, CEO Jesse Bray sold 92,300 shares of the business’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $12.39, for a total value of $1,143,597.00. Following the transaction, the chief executive officer directly owned 7,728,027 shares of the company’s stock, valued at approximately $95,750,254.53. The trade was a 1.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 450,000 shares of company stock worth $5,687,074. Insiders own 57.68% of the company’s stock.

Institutional Investors Weigh In On Rocket Companies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vontobel Holding Ltd. lifted its position in shares of Rocket Companies by 6.4% during the third quarter. Vontobel Holding Ltd. now owns 69,406 shares of the company’s stock worth $799,000 after acquiring an additional 4,202 shares in the last quarter. GFG Capital LLC purchased a new position in shares of Rocket Companies in the 3rd quarter worth about $9,545,000. Mather Group LLC. grew its holdings in shares of Rocket Companies by 102.6% during the 3rd quarter. Mather Group LLC. now owns 5,222 shares of the company’s stock valued at $60,000 after purchasing an additional 2,645 shares during the last quarter. B. Riley Wealth Advisors Inc. purchased a new position in shares of Rocket Companies in the 3rd quarter valued at approximately $254,000. Finally, Farther Finance Advisors LLC grew its stake in Rocket Companies by 12.7% during the 3rd quarter. Farther Finance Advisors LLC now owns 32,318 shares of the company’s stock valued at $372,000 after purchasing an additional 3,652 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based fintech platform that provides digital financial and real estate services primarily to consumers in the United States. Its operations are centered on helping customers obtain, manage and refinance home loans, while also offering related services across the homeownership and personal finance lifecycle.

The company’s principal businesses include Rocket Mortgage, a digital mortgage lender and originator; Rocket Homes, a real estate marketplace and agent-referral platform; Rocket Money, a personal finance application that helps users manage subscriptions, budgets and bills; and Rocket Loans, which provides personal loans.