Rocket Companies (NYSE:RKT) Trading 7% Higher – Still a Buy?

Shares of Rocket Companies, Inc. (NYSE:RKT) traded up 7% during mid-day trading on Thursday . The stock traded as high as $15.08 and last traded at $15.0350. 17,680,802 shares changed hands during trading, a decline of 40% from the average daily volume of 29,239,139 shares. The stock had previously closed at $14.05.

Analyst Ratings Changes

Several research firms recently commented on RKT. Benchmark dropped their target price on Rocket Companies from $21.00 to $19.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Morgan Stanley raised Rocket Companies from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $18.00 to $19.00 in a research note on Thursday, July 16th. 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 report on Monday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Rocket Companies in a research note on Friday, August 7th. Finally, BTIG Research reiterated a “neutral” rating on shares of Rocket Companies in a report on Tuesday, June 16th. Ten equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $19.87.

Rocket Companies Trading Up 7.8%

The company has a debt-to-equity ratio of 1.16, a current ratio of 4.85 and a quick ratio of 4.37. The business’s 50-day simple moving average is $14.02 and its two-hundred day simple moving average is $15.26. The stock has a market capitalization of $42.86 billion, a price-to-earnings ratio of 108.04 and a beta of 2.19.

Rocket Companies (NYSE:RKT) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.16. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The company had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.81 billion. During the same quarter in the prior year, the business earned $0.04 earnings per share. The business’s quarterly revenue was up 91.9% compared to the same quarter last year. On average, research analysts anticipate that Rocket Companies, Inc. will post 0.54 earnings per share for the current fiscal year.

Institutional Trading of Rocket Companies

Large investors have recently added to or reduced their stakes in the stock. Manchester Capital Management LLC raised its position in shares of Rocket Companies by 0.5% during the 4th quarter. Manchester Capital Management LLC now owns 116,466 shares of the company’s stock worth $2,255,000 after buying an additional 618 shares in the last quarter. Composition Wealth LLC increased its stake in shares of Rocket Companies by 2.7% during the fourth quarter. Composition Wealth LLC now owns 25,323 shares of the company’s stock valued at $490,000 after acquiring an additional 668 shares during the period. Parallel Advisors LLC lifted its position in Rocket Companies by 26.1% in the third quarter. Parallel Advisors LLC now owns 3,267 shares of the company’s stock worth $63,000 after purchasing an additional 677 shares during the period. Red Door Wealth Management LLC lifted its position in Rocket Companies by 6.7% in the first quarter. Red Door Wealth Management LLC now owns 11,138 shares of the company’s stock worth $159,000 after purchasing an additional 698 shares during the period. Finally, NewEdge Wealth LLC boosted its stake in Rocket Companies by 5.7% during the 4th quarter. NewEdge Wealth LLC now owns 13,204 shares of the company’s stock valued at $256,000 after purchasing an additional 707 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

About Rocket Companies

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.