Rocket Companies (NYSE:RKT) Shares Up 9% – What’s Next?

Rocket Companies, Inc. (NYSE:RKT)’s stock price was up 9% during trading on Wednesday . The stock traded as high as $14.72 and last traded at $14.6870. Approximately 4,234,032 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 28,231,365 shares. The stock had previously closed at $13.47.

Wall Street Analysts Forecast Growth

RKT has been the subject of several research reports. Zacks Research upgraded shares of Rocket Companies from a “strong sell” rating to a “hold” rating in a research report on Tuesday, May 12th. Compass Point assumed coverage on Rocket Companies in a report on Tuesday, March 10th. They set a “buy” rating and a $21.00 price target for the company. Keefe, Bruyette & Woods reduced their target price on shares of Rocket Companies from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Tuesday, May 12th. JPMorgan Chase & Co. dropped their price objective on Rocket Companies from $24.00 to $16.50 and set a “neutral” rating for the company in a report on Thursday, April 9th. Finally, Barclays upgraded Rocket Companies from an “equal weight” rating to an “overweight” rating and cut their target price for the company from $22.00 to $19.00 in a research report on Monday, April 6th. Eight equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $20.93.

Rocket Companies Stock Performance

The firm has a market capitalization of $43.25 billion, a price-to-earnings ratio of 305.56 and a beta of 2.19. The company has a current ratio of 4.37, a quick ratio of 4.37 and a debt-to-equity ratio of 1.13. The stock’s 50-day moving average is $14.28 and its 200-day moving average is $16.79.

Rocket Companies (NYSE:RKT) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.15 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.03. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The company had revenue of $2.82 billion for the quarter, compared to the consensus estimate of $2.76 billion. During the same quarter last year, the business posted $0.04 EPS. Rocket Companies’s revenue for the quarter was up 167.1% on a year-over-year basis. On average, analysts predict that Rocket Companies, Inc. will post 0.65 EPS for the current fiscal year.

Institutional Trading of Rocket Companies

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in Rocket Companies by 29.5% during the 3rd quarter. Vanguard Group Inc. now owns 22,945,500 shares of the company’s stock worth $444,684,000 after purchasing an additional 5,226,931 shares in the last quarter. Vaughan Nelson Investment Management L.P. bought a new position in shares of Rocket Companies in the fourth quarter valued at approximately $40,455,000. Baker Chad R bought a new position in shares of Rocket Companies in the fourth quarter valued at approximately $1,926,000. Hudson Bay Capital Management LP purchased a new position in shares of Rocket Companies during the third quarter valued at approximately $13,728,000. Finally, Prescott Group Capital Management L.L.C. purchased a new position in shares of Rocket Companies during the fourth quarter valued at approximately $4,259,000. Institutional investors own 4.59% of the company’s stock.

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.