Rocket Companies, Inc. (NYSE:RKT) Stock Has Average Price Target of $18.88

Shares of Rocket Companies, Inc. (NYSE:RKT) have been given a consensus recommendation of “Moderate Buy” by the fifteen research firms that are covering the firm, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 1 year target price among analysts that have covered the stock in the last year is $18.75.

Several equities research analysts have weighed in on RKT shares. Keefe, Bruyette & Woods dropped their price objective on Rocket Companies from $20.00 to $19.00 and set an “outperform” rating for the company in a report on Monday, August 10th. Benchmark decreased their price target on shares of Rocket Companies from $21.00 to $19.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Royal Bank Of Canada dropped their target price on Rocket Companies from $16.00 to $14.00 and set a “sector perform” rating on the stock in a report on Friday. Barclays cut their price target on shares of Rocket Companies from $17.00 to $15.00 and set an “overweight” rating on the stock in a report on Monday, October 5th. Finally, Weiss Ratings raised Rocket Companies from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, October 8th.

Insider Activity

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $13.11, for a total transaction of $2,949,750.00. Following the sale, the insider directly owned 7,953,027 shares of the company’s stock, valued at $104,264,183.97. This trade represents a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 450,000 shares of company stock worth $5,687,074 over the last 90 days. Corporate insiders own 57.68% of the company’s stock.

Hedge Funds Weigh In On Rocket Companies

A number of hedge funds have recently bought and sold shares of RKT. Amundi grew 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 acquiring an additional 8,280,463 shares during the period. Wellington Management Group LLP raised its position in shares of Rocket Companies by 64.5% during the 2nd quarter. Wellington Management Group LLP now owns 9,029,295 shares of the company’s stock valued at $142,211,000 after purchasing an additional 3,541,916 shares during the period. Atreides Management LP raised its position in shares of Rocket Companies by 69.7% during the 1st quarter. Atreides Management LP now owns 6,114,947 shares of the company’s stock valued at $87,138,000 after purchasing an additional 2,512,384 shares during the period. Maple Rock Capital Partners Inc. lifted its stake in shares of Rocket Companies by 76.9% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 5,543,600 shares of the company’s stock valued at $87,312,000 after buying an additional 2,410,400 shares in the last quarter. Finally, Assenagon Asset Management S.A. purchased a new position in shares of Rocket Companies during the 2nd quarter valued at $74,874,000. Hedge funds and other institutional investors own 4.59% of the company’s stock.

Key Headlines Impacting Rocket Companies

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

• Positive Sentiment: Falling Treasury yields supported housing stocks. Retreating bond yields improved the outlook for rate-sensitive mortgage and housing companies, helping Rocket outperform peers such as Compass and Zillow. Rocket Companies Jumps 9%, Compass and Zillow Surge 8 as Treasury Yields Retreat
• Positive Sentiment: Third-quarter earnings exceeded expectations. Rocket reported adjusted earnings per share of $0.15, ahead of estimates, while revenue growth and profitability remained resilient despite a weak mortgage market. Management also expects $2.1 billion–$2.3 billion of fourth-quarter adjusted revenue and further expense synergies from the Mr. Cooper acquisition. Rocket Companies: Stunning Growth In A Terrible Housing Market
• Positive Sentiment: Options activity suggested increased bullish interest. Investors purchased 90,488 call options, approximately 38% above the average daily call volume, potentially amplifying upward momentum and signaling expectations for further gains.
• Positive Sentiment: Some analysts see additional appreciation potential. JPMorgan reportedly forecast strong price appreciation for Rocket, adding to the positive reaction following the earnings report. JPMorgan Chase Forecasts Strong Price Appreciation for Rocket Companies
• Neutral Sentiment: Technical momentum improved. The stock moved above its 50-day moving average after the earnings-driven gap higher, although it remained below its 200-day average, leaving the broader trend mixed. Rocket Companies Share Price Crosses Above Fifty Day Moving Average
• Negative Sentiment: Analysts raised valuation concerns. Coverage characterized RKT as potentially overvalued even after its profitability improvement, while Royal Bank of Canada reduced its price target. Rocket Companies Stock Looks Overvalued Even After Strong Profitability
• Negative Sentiment: New mortgage originations remain a concern. Weak housing activity and challenging origination trends could limit revenue growth, particularly if mortgage rates remain elevated. Rocket Companies: Struggling With New Originations

Rocket Companies Price Performance

RKT stock opened at $13.75 on Thursday. The stock has a market capitalization of $38.93 billion, a price-to-earnings ratio of 30.55, a PEG ratio of 3.46 and a beta of 2.23. The firm’s 50-day moving average price is $12.37 and its two-hundred day moving average price is $14.71. 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 has a 12-month low of $10.18 and a 12-month high of $24.36.

Rocket Companies (NYSE:RKT) last posted its earnings results on Thursday, October 29th. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.01. The company had revenue of $2.57 billion during the quarter, compared to analyst estimates of $2.58 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. Rocket Companies’s revenue for the quarter was up 37.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.07 earnings per share. As a group, equities analysts predict that Rocket Companies will post 0.47 earnings per share for the current year.

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based financial technology company that operates a portfolio of consumer finance and real estate businesses. Its platform is designed to simplify the homeownership process through digital applications, automated workflows and online customer support.

The company’s principal business is Rocket Mortgage, a residential mortgage lender and servicer offering home purchase, refinance and home equity products. Its broader portfolio includes Rocket Homes, a real estate services platform; Rocket Money, a personal finance app that helps consumers manage subscriptions, budgets and bills; Rocket Loans, which provides personal loans; and Rocket Pro, which supports mortgage brokers and other partners.

Rocket Companies traces its history to 1985, when Dan Gilbert founded Rock Financial.