Investors Buy Large Volume of Rocket Companies Call Options (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) was the target of unusually large options trading on Friday. Stock traders acquired 89,912 call options on the company. This represents an increase of approximately 48% compared to the typical daily volume of 60,824 call options.

Analyst Ratings Changes

RKT has been the subject of a number of research analyst reports. JPMorgan Chase & Co. dropped their price target on Rocket Companies from $15.50 to $14.00 and set a “neutral” rating for the company in a research report on Friday, August 7th. 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. Weiss Ratings raised shares of Rocket Companies from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday. Stephens dropped their target price on shares of Rocket Companies from $22.50 to $20.00 and set an “overweight” rating for the company in a report on Friday, August 7th. Finally, BTIG Research restated a “neutral” rating on shares of Rocket Companies in a research report on Tuesday, June 16th. Nine research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $19.46.

Rocket Companies Price Performance

Rocket Companies stock opened at $11.48 on Friday. Rocket Companies has a 12-month low of $10.99 and a 12-month high of $24.36. The stock has a market capitalization of $32.52 billion, a P/E ratio of 82.02, a P/E/G ratio of 3.32 and a beta of 2.23. The firm’s 50-day moving average is $13.21 and its two-hundred day moving average is $13.95. The company has a debt-to-equity ratio of 1.16, a current ratio of 4.85 and a quick ratio of 4.85.

Rocket Companies (NYSE:RKT) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.16 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.16. The business had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.81 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The company’s revenue was up 91.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.04 earnings per share. Equities analysts predict that Rocket Companies will post 0.51 earnings per share for the current year.

Insiders Place Their Bets

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of Rocket Companies 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 completion of the transaction, the insider directly owned 7,953,027 shares of the company’s stock, valued at approximately $104,264,183.97. The trade was a 2.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 450,000 shares of company stock valued at $5,687,074. Company insiders own 57.68% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Nuveen LLC increased its stake in Rocket Companies by 5.5% during the fourth quarter. Nuveen LLC now owns 32,538,137 shares of the company’s stock worth $629,938,000 after acquiring an additional 1,706,659 shares during the last quarter. Amundi raised its holdings in shares of Rocket Companies by 152.1% in the 1st quarter. Amundi now owns 13,725,878 shares of the company’s stock worth $195,594,000 after purchasing an additional 8,280,463 shares during the period. Fred Alger Management LLC lifted its stake in shares of Rocket Companies by 67.6% in the 4th quarter. Fred Alger Management LLC now owns 10,190,918 shares of the company’s stock valued at $197,296,000 after purchasing an additional 4,112,118 shares in the last quarter. Wellington Management Group LLP grew its holdings 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 worth $142,211,000 after purchasing an additional 3,541,916 shares during the period. Finally, Wolf Hill Capital Management LP increased its position in Rocket Companies by 186.8% during the 4th quarter. Wolf Hill Capital Management LP now owns 7,221,758 shares of the company’s stock worth $139,813,000 after purchasing an additional 4,703,760 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

Rocket Companies Company Profile

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.