Rocket Companies (NYSE:RKT) Raised to Hold at Zacks Research

Rocket Companies (NYSE:RKT) was upgraded by Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued on Tuesday,Zacks.com reports.

RKT has been the topic of a number of other reports. Barclays upgraded Rocket Companies from an “equal weight” rating to an “overweight” rating and lowered their target price for the stock from $22.00 to $19.00 in a research note on Monday, April 6th. Royal Bank Of Canada restated a “sector perform” rating and set a $20.00 price target on shares of Rocket Companies in a research note on Monday. Keefe, Bruyette & Woods decreased their target price on Rocket Companies from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Tuesday. JPMorgan Chase & Co. cut their price target on Rocket Companies from $24.00 to $16.50 and set a “neutral” rating for the company in a research note on Thursday, April 9th. Finally, Citizens Jmp began coverage on Rocket Companies in a research note on Wednesday, March 25th. They issued a “market perform” rating on the stock. Nine investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $20.93.

Rocket Companies Trading Down 6.6%

Shares of RKT stock opened at $13.82 on Tuesday. The company has a debt-to-equity ratio of 1.13, a quick ratio of 70.90 and a current ratio of 4.37. The company has a market capitalization of $38.98 billion, a price-to-earnings ratio of 276.48 and a beta of 2.23. Rocket Companies has a 52-week low of $12.03 and a 52-week high of $24.36. The company has a 50-day simple moving average of $14.95 and a two-hundred day simple moving average of $17.63.

Rocket Companies (NYSE:RKT) last posted its earnings results on Thursday, May 7th. The company reported $0.15 EPS for the quarter, topping the consensus estimate of $0.12 by $0.03. The firm had revenue of $2.82 billion for the quarter, compared to analysts’ expectations of $2.76 billion. Rocket Companies had a net margin of 2.78% and a return on equity of 4.30%. The company’s quarterly revenue was up 167.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.04 EPS. Research analysts anticipate that Rocket Companies will post 0.63 EPS for the current fiscal year.

Institutional Investors Weigh In On Rocket Companies

A number of institutional investors have recently made changes to their positions in the business. Cloud Capital Management LLC purchased a new position in shares of Rocket Companies in the third quarter worth about $25,000. Truvestments Capital LLC purchased a new stake in shares of Rocket Companies in the 4th quarter worth about $26,000. Acumen Wealth Advisors LLC purchased a new position in shares of Rocket Companies during the fourth quarter valued at about $26,000. Pinnacle Bancorp Inc. raised its stake in Rocket Companies by 369.7% in the fourth quarter. Pinnacle Bancorp Inc. now owns 1,503 shares of the company’s stock worth $29,000 after buying an additional 1,183 shares in the last quarter. Finally, City State Bank bought a new stake in Rocket Companies during the 4th quarter valued at approximately $30,000. 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: Rocket’s Q1 call highlighted “AI-fueled momentum,” reinforcing the company’s push to use technology to improve growth, efficiency, and the customer experience. Rocket Companies Q1 Call Showcases AI-Fueled Momentum
• Positive Sentiment: In the company’s Q1 update, Rocket reported adjusted EPS of 15 cents versus 12 cents expected and revenue of $2.94 billion versus $2.78 billion expected, signaling stronger-than-expected operating performance. Is Rocket (RKT) the Best Affordable Stock to Buy According to Wall Street Analysts?
• Positive Sentiment: Redfin data showed U.S. home prices rose at the fastest pace in more than a year, which could support mortgage origination activity and Rocket’s housing-related businesses. Redfin Reports Home Prices Posted the Biggest Increase in Over a Year in April
• Positive Sentiment: Rocket Mortgage’s VA-loan awareness campaign highlights a large pool of eligible borrowers who may not be using a no-down-payment product, suggesting a potential growth opportunity. Only Half of Service Members Are Aware VA Loans Require No Down Payment
• Neutral Sentiment: Management also announced CEO Varun Krishna will speak at JPMorgan’s technology, media, and communications conference next week, a visibility event that could provide more detail on strategy but is not an immediate earnings catalyst. Rocket Companies CEO Varun Krishna to Present at JP Morgan Global Technology, Media, and Communications Conference
• Neutral Sentiment: Rocket disclosed a brief quarterly filing delay via Form 12b-25, which usually indicates an administrative issue rather than a major fundamental problem. Rocket Companies Explains Brief Quarterly Filing Delay
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target on RKT to $21 from $22, which may weigh on sentiment even though the firm kept an outperform rating. Rocket Companies (NYSE:RKT) Price Target Lowered to $21.00 at Keefe, Bruyette & Woods
• Negative Sentiment: Additional coverage from analysts and sector-watch lists suggests the stock is still being evaluated alongside other fintech names, but not all of that attention is clearly bullish. Fintech Stocks To Keep An Eye On – May 11th

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.