Rocket Companies (NYSE:RKT) Stock Sees Unusually High Call Option Buying

Rocket Companies, Inc. (NYSE:RKT) was the recipient of unusually large options trading activity on Monday. Investors acquired 90,488 call options on the company. This is an increase of 38% compared to the typical volume of 65,427 call options.

Analysts Set New Price Targets

Several brokerages have recently weighed in on RKT. Benchmark decreased their target price on Rocket Companies from $21.00 to $19.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Keefe, Bruyette & Woods reduced their price target on Rocket Companies from $20.00 to $19.00 and set an “outperform” rating on the stock in a research report on Monday, August 10th. Stephens decreased their price target on Rocket Companies from $22.50 to $20.00 and set an “overweight” rating for the company in a report on Friday, August 7th. Barclays decreased their price target on Rocket Companies from $17.00 to $15.00 and set an “overweight” rating for the company in a report on Monday, October 5th. Finally, Wells Fargo & Company set a $13.00 price objective on shares of Rocket Companies and gave the company an “equal weight” rating in a research report on Tuesday, October 6th. Eight analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $18.75.

Rocket Companies Stock Up 7.4%

Shares of NYSE RKT traded up $0.95 during midday trading on Monday, reaching $13.75. 47,010,573 shares of the company’s stock were exchanged, compared to its average volume of 30,406,688. The company has a debt-to-equity ratio of 1.02, a quick ratio of 4.85 and a current ratio of 3.77. Rocket Companies has a 52-week low of $10.18 and a 52-week high of $24.36. The business’s fifty day moving average price is $12.38 and its two-hundred day moving average price is $14.76. The stock has a market capitalization of $38.93 billion, a PE ratio of 30.55, a price-to-earnings-growth ratio of 3.85 and a beta of 2.26.

Rocket Companies (NYSE:RKT) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.15 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.01. Rocket Companies had a return on equity of 5.33% and a net margin of 11.14%. The firm had revenue of $2.57 billion during the quarter, compared to the consensus estimate of $2.58 billion. During the same quarter in the prior year, the business posted $0.07 earnings per share. Rocket Companies’s revenue for the quarter was up 37.4% on a year-over-year basis. Analysts forecast that Rocket Companies will post 0.47 EPS for the current year.

Insiders Place Their Bets

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 sale, the chief executive officer directly owned 7,728,027 shares in the company, valued at approximately $95,750,254.53. This represents a 1.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 450,000 shares of company stock worth $5,687,074. 57.68% of the stock is currently owned by corporate insiders.

Institutional Trading of Rocket Companies

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Commonwealth Equity Services LLC raised its stake in Rocket Companies by 3.0% during the third quarter. Commonwealth Equity Services LLC now owns 363,525 shares of the company’s stock valued at $4,184,000 after buying an additional 10,558 shares in the last quarter. Rakuten Investment Management Inc. grew its position in shares of Rocket Companies by 14.1% in the 3rd quarter. Rakuten Investment Management Inc. now owns 58,973 shares of the company’s stock worth $689,000 after acquiring an additional 7,297 shares in the last quarter. Landaas & Co. WI ADV acquired a new position in shares of Rocket Companies in the 3rd quarter worth approximately $140,000. Sumitomo Mitsui Trust Group Inc. grew its position in shares of Rocket Companies by 2.9% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,722,712 shares of the company’s stock worth $19,828,000 after acquiring an additional 49,049 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Rocket Companies in the 3rd quarter valued at approximately $27,000. Institutional investors own 4.59% of the company’s stock.

Key Stories Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Lower Treasury yields boosted housing stocks. Rocket led a broader rally among mortgage and real-estate platforms as retreating bond yields improved expectations for borrowing costs and refinancing activity. Rocket Companies Jumps 9%, Compass and Zillow Surge as Treasury Yields Retreat
• Positive Sentiment: Recent earnings provided fundamental support. Coverage highlighted third-quarter adjusted EPS of $0.15, revenue of $3.28 billion and a 29% adjusted EBITDA margin, along with management’s $2.1 billion–$2.3 billion fourth-quarter adjusted-revenue outlook and expected Mr. Cooper acquisition synergies. Rocket Companies: Stunning Growth In A Terrible Housing Market
• Positive Sentiment: Options activity suggested increased bullish interest. Traders purchased 90,488 call options, about 38% above typical call volume, indicating heightened speculation or demand for upside exposure.
• Positive Sentiment: Some analysts see substantial upside. JPMorgan reportedly forecast strong price appreciation, supporting the bullish case tied to Rocket’s profitability and strategic scale. JPMorgan Forecasts Strong Price Appreciation for Rocket Companies
• Neutral Sentiment: Analyst opinion remains mixed. Royal Bank of Canada lowered its price target, while other coverage described the stock as potentially overvalued despite improving profits. Royal Bank of Canada Reduces Rocket Companies Price Target
• Negative Sentiment: New mortgage originations remain a concern. Analysts cautioned that Rocket continues to operate in a depressed mortgage market, making sustained growth dependent on lower rates, stronger housing activity and successful integration-related cost savings. Rocket Companies: Struggling With New Originations

About Rocket Companies

Rocket Companies, Inc is a Detroit-based financial technology company that operates a portfolio of consumer finance and real estate businesses. Its platform is designed to simplify the homeownership process through digital applications, automated workflows and online customer support.

The company’s principal business is Rocket Mortgage, a residential mortgage lender and servicer offering home purchase, refinance and home equity products. Its broader portfolio includes Rocket Homes, a real estate services platform; Rocket Money, a personal finance app that helps consumers manage subscriptions, budgets and bills; Rocket Loans, which provides personal loans; and Rocket Pro, which supports mortgage brokers and other partners.

Rocket Companies traces its history to 1985, when Dan Gilbert founded Rock Financial.