Rocket Companies (NYSE:RKT) Reaches New 52-Week Low – Should You Sell?

Rocket Companies, Inc. (NYSE:RKT)’s stock price hit a new 52-week low during trading on Wednesday. The stock traded as low as $10.99 and last traded at $11.2570, with a volume of 2976685 shares changing hands. The stock had previously closed at $11.59.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on RKT. Stephens reduced 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. Royal Bank Of Canada restated a “sector perform” rating and set a $16.00 target price (up from $15.00) on shares of Rocket Companies in a research note on Wednesday, August 12th. Keefe, Bruyette & Woods decreased their price target on Rocket Companies from $20.00 to $19.00 and set an “outperform” rating on the stock in a research note on Monday, August 10th. Benchmark lowered 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. Finally, JPMorgan Chase & Co. lowered their price target on shares of Rocket Companies from $15.50 to $14.00 and set a “neutral” rating for the company in a report on Friday, August 7th. Nine research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Rocket Companies currently has a consensus rating of “Moderate Buy” and an average price target of $19.29.

Rocket Companies Trading Down 2.4%

The firm has a 50-day moving average of $13.32 and a 200 day moving average of $14.00. The company has a market cap of $32.04 billion, a P/E ratio of 81.03, a price-to-earnings-growth ratio of 3.21 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.

Rocket Companies (NYSE:RKT) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.16. The firm had revenue of $2.76 billion for the quarter, compared to analyst estimates of $2.81 billion. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%.The company’s revenue was up 91.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.04 earnings per share. On average, analysts predict that Rocket Companies, Inc. will post 0.52 earnings per share for the current fiscal year.

Insider Activity

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $13.11, for a total transaction of $2,949,750.00. Following the transaction, the insider directly owned 7,953,027 shares of the company’s stock, valued at $104,264,183.97. This represents a 2.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 450,000 shares of company stock worth $5,687,074. 57.68% of the stock is owned by insiders.

Hedge Funds Weigh In On Rocket Companies

Institutional investors have recently made changes to their positions in the stock. Amundi lifted its holdings in Rocket Companies by 152.1% during the first quarter. Amundi now owns 13,725,878 shares of the company’s stock worth $195,594,000 after acquiring an additional 8,280,463 shares during the period. Basswood Capital Management L.L.C. increased its position in shares of Rocket Companies by 1,881.3% during the 4th quarter. Basswood Capital Management L.L.C. now owns 5,475,110 shares of the company’s stock valued at $105,998,000 after purchasing an additional 5,198,776 shares during the last quarter. Assenagon Asset Management S.A. bought a new stake in shares of Rocket Companies during the 2nd quarter worth $74,874,000. Wolf Hill Capital Management LP boosted its holdings in shares of Rocket Companies by 186.8% in the 4th quarter. Wolf Hill Capital Management LP now owns 7,221,758 shares of the company’s stock worth $139,813,000 after buying an additional 4,703,760 shares during the last quarter. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new position in Rocket Companies during the second quarter valued at about $67,795,000. 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.