Stock Traders Purchase Large Volume of Rocket Companies Call Options (NYSE:RKT)

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

Key Stories Impacting Rocket Companies

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

• Positive Sentiment: Options traders bought 81,651 RKT call contracts, 38% above the typical daily volume of 59,141. The activity may indicate increased speculative interest or expectations for a rebound. Unusual RKT options trading
• Positive Sentiment: Analysts’ consensus remains “Moderate Buy,” with an average price target of $19.57, well above recent trading levels. Morgan Stanley previously upgraded the stock to overweight, although other firms have maintained neutral ratings or reduced targets. Rocket Companies analyst ratings
• Neutral Sentiment: Redfin, which is powered by Rocket, reported that U.S. pending home sales fell 3.5% week over week to their lowest level in nearly three years. Fewer transactions could pressure mortgage originations, but buyers who remain active have more inventory and negotiating power. Redfin pending home sales report
• Negative Sentiment: CEO Jesse Bray sold 225,000 shares worth approximately $2.95 million, reducing his direct ownership by 2.75%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which makes it less informative about current management views but can still weigh on sentiment. Rocket Companies CEO stock sale filing
• Negative Sentiment: A recent investment article titled “3 Reasons to Sell RKT and 1 Stock to Buy Instead” adds to the bearish narrative surrounding the shares, which remain below their 50-day and 200-day moving averages. Reasons to sell RKT article

Insider Activity at Rocket Companies

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the company’s stock in a transaction that occurred 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 sale, the insider directly owned 7,953,027 shares in the company, valued at $104,264,183.97. This represents a 2.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 57.68% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Companies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Smithfield Trust Co bought a new position in Rocket Companies in the 4th quarter worth about $32,000. Key Financial Inc bought a new stake in shares of Rocket Companies during the 4th quarter valued at about $32,000. Cassaday & Co Wealth Management LLC purchased a new position in shares of Rocket Companies during the first quarter worth about $34,000. Summit Securities Group LLC bought a new position in shares of Rocket Companies in the first quarter worth approximately $60,000. Finally, Leonteq Securities AG bought a new position in shares of Rocket Companies in the fourth quarter worth approximately $71,000. 4.59% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Companies Price Performance

RKT stock traded down $0.38 during mid-day trading on Thursday, reaching $12.57. 34,647,921 shares of the company traded hands, compared to its average volume of 28,693,813. The company has a fifty day moving average price of $13.87 and a 200-day moving average price of $14.35. The company has a debt-to-equity ratio of 1.16, a current ratio of 4.85 and a quick ratio of 4.85. The company has a market capitalization of $35.61 billion, a P/E ratio of 89.74, a P/E/G ratio of 3.62 and a beta of 2.20. Rocket Companies has a 52-week low of $12.17 and a 52-week high of $24.36.

Rocket Companies (NYSE:RKT) last posted its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.16. The business had revenue of $2.76 billion for the quarter, compared to analysts’ expectations of $2.81 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The business’s revenue for the quarter was up 91.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.04 EPS. As a group, analysts anticipate that Rocket Companies will post 0.52 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have commented on RKT shares. Stephens cut their price target on shares of Rocket Companies from $22.50 to $20.00 and set an “overweight” rating on the stock in a research report on Friday, August 7th. Barclays reduced their price objective on shares of Rocket Companies from $19.00 to $17.00 and set an “overweight” rating for the company in a report on Tuesday, July 7th. Keefe, Bruyette & Woods lowered their price target on Rocket Companies from $20.00 to $19.00 and set an “outperform” rating for the company in a research report on Monday, August 10th. Benchmark dropped their target price on shares of Rocket Companies from $21.00 to $19.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Finally, JPMorgan Chase & Co. cut their price target on shares of Rocket Companies from $15.50 to $14.00 and set a “neutral” rating on the stock in a report on Friday, August 7th. Nine investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $19.57.

About Rocket Companies

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.