Avala Global LP Makes New $21.82 Million Investment in Rocket Companies, Inc. $RKT

Avala Global LP purchased a new position in shares of Rocket Companies, Inc. (NYSE:RKT) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 1,127,013 shares of the company’s stock, valued at approximately $21,819,000. Rocket Companies makes up about 1.0% of Avala Global LP’s holdings, making the stock its 22nd biggest position. Avala Global LP owned about 0.05% of Rocket Companies as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in shares of Rocket Companies by 280.3% during the 4th quarter. Vanguard Group Inc. now owns 87,256,540 shares of the company’s stock worth $1,689,287,000 after buying an additional 64,311,040 shares in the last quarter. Nuveen LLC raised its position in shares of Rocket Companies by 5.5% during the 4th quarter. Nuveen LLC now owns 32,538,137 shares of the company’s stock worth $629,938,000 after buying an additional 1,706,659 shares in the last quarter. Morgan Stanley raised its position in shares of Rocket Companies by 461.2% during the 4th quarter. Morgan Stanley now owns 27,009,279 shares of the company’s stock worth $522,900,000 after buying an additional 22,196,782 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Rocket Companies by 11,636.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 26,189,869 shares of the company’s stock worth $507,037,000 after buying an additional 25,966,725 shares in the last quarter. Finally, ValueAct Holdings L.P. raised its position in shares of Rocket Companies by 67.9% during the 3rd quarter. ValueAct Holdings L.P. now owns 25,395,627 shares of the company’s stock worth $492,167,000 after buying an additional 10,270,018 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors.

Rocket Companies Stock Down 5.4%

RKT stock opened at $13.17 on Thursday. Rocket Companies, Inc. has a 52-week low of $12.17 and a 52-week high of $24.36. The company’s 50 day simple moving average is $14.36 and its 200-day simple moving average is $16.96. The company has a debt-to-equity ratio of 1.13, a current ratio of 4.37 and a quick ratio of 4.37. The firm has a market capitalization of $37.27 billion, a P/E ratio of 263.48 and a beta of 2.19.

Rocket Companies (NYSE:RKT) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.03. Rocket Companies had a net margin of 2.78% and a return on equity of 4.30%. The business had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.76 billion. During the same quarter in the previous year, the business earned $0.04 earnings per share. The firm’s revenue was up 167.1% compared to the same quarter last year. As a group, equities research analysts anticipate that Rocket Companies, Inc. will post 0.65 EPS for the current year.

Analyst Ratings Changes

RKT has been the topic of a number of recent analyst reports. Citizens Jmp initiated coverage on shares of Rocket Companies in a research report on Wednesday, March 25th. They set a “market perform” rating on the stock. BTIG Research restated a “neutral” rating on shares of Rocket Companies in a research report on Tuesday. Keefe, Bruyette & Woods dropped their target price on shares of Rocket Companies from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Tuesday, May 12th. Barclays upgraded shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and dropped their target price for the stock from $22.00 to $19.00 in a report on Monday, April 6th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Rocket Companies from $24.00 to $16.50 and set a “neutral” rating on the stock in a report on Thursday, April 9th. Eight research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $20.93.

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.