Rocket Companies (NYSE:RKT) Shares Gap Up – Here’s Why

Shares of Rocket Companies, Inc. (NYSE:RKT) gapped up before the market opened on Thursday. The stock had previously closed at $10.53, but opened at $10.97. Rocket Companies shares last traded at $11.1080, with a volume of 6,563,566 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms have recently commented on RKT. Wells Fargo & Company set a $13.00 price objective on Rocket Companies and gave the stock an “equal weight” rating in a research note on Tuesday, October 6th. Barclays decreased their target price on Rocket Companies from $17.00 to $15.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $16.00 target price (up from $15.00) on shares of Rocket Companies in a report on Wednesday, August 12th. Keefe, Bruyette & Woods lowered their target price on Rocket Companies from $20.00 to $19.00 and set an “outperform” rating on the stock in a report on Monday, August 10th. Finally, Stephens dropped 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. Eight equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $19.12.

Rocket Companies Price Performance

The company has a market cap of $30.96 billion, a price-to-earnings ratio of 77.96, a P/E/G ratio of 3.17 and a beta of 2.23. The company has a current ratio of 4.85, a quick ratio of 4.85 and a debt-to-equity ratio of 1.16. The business has a 50-day moving average price of $13.02 and a 200 day moving average price of $13.87.

Rocket Companies (NYSE:RKT) last issued its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates 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 return on equity of 5.13% and a net margin of 4.70%. The company’s quarterly revenue was up 91.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.04 EPS. As a group, research analysts expect that Rocket Companies, Inc. will post 0.49 earnings per share for the current fiscal year.

Insider Activity at Rocket Companies

In related news, CEO Jesse Bray sold 92,300 shares of the stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $12.39, for a total value of $1,143,597.00. Following the completion of the transaction, the chief executive officer owned 7,728,027 shares in the company, valued at $95,750,254.53. This trade represents a 1.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 450,000 shares of company stock worth $5,687,074 over the last three months. Corporate insiders own 57.68% of the company’s stock.

Institutional Trading of Rocket Companies

Institutional investors and hedge funds have recently bought and sold shares of the stock. Amundi boosted its holdings in shares of Rocket Companies by 152.1% in the first quarter. Amundi now owns 13,725,878 shares of the company’s stock worth $195,594,000 after buying an additional 8,280,463 shares during the period. Andra AP fonden increased its position in shares of Rocket Companies by 48.0% in the first quarter. Andra AP fonden now owns 729,357 shares of the company’s stock worth $10,393,000 after acquiring an additional 236,632 shares in the last quarter. Swiss National Bank increased its position in shares of Rocket Companies by 7.2% in the first quarter. Swiss National Bank now owns 2,696,000 shares of the company’s stock worth $38,418,000 after acquiring an additional 180,500 shares in the last quarter. OCO Capital Partners L.P. purchased a new position in shares of Rocket Companies in the fourth quarter worth approximately $68,728,000. Finally, Maple Rock Capital Partners Inc. raised its holdings in shares of Rocket Companies by 76.9% during the second quarter. Maple Rock Capital Partners Inc. now owns 5,543,600 shares of the company’s stock valued at $87,312,000 after acquiring an additional 2,410,400 shares during the period. Institutional investors and hedge funds own 4.59% of the company’s stock.

About Rocket Companies

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.