Rocket Companies (NYSE:RKT) Sets New 12-Month Low on Analyst Downgrade

Rocket Companies, Inc. (NYSE:RKT)’s share price reached a new 52-week low on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $14.00 to $12.50. JPMorgan Chase & Co. currently has a neutral rating on the stock. Rocket Companies traded as low as $10.78 and last traded at $10.8120, with a volume of 39,511,599 shares traded. The stock had previously closed at $11.48.

RKT has been the subject of a number of other reports. Weiss Ratings upgraded Rocket Companies from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. BTIG Research reissued a “neutral” rating on shares of Rocket Companies in a report on Tuesday, June 16th. Keefe, Bruyette & Woods dropped 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. Royal Bank Of Canada restated a “sector perform” rating and set a $16.00 price target (up from $15.00) on shares of Rocket Companies in a research note on Wednesday, August 12th. Finally, Morgan Stanley set a $16.00 price objective on shares of Rocket Companies and gave the company an “overweight” rating in a report on Monday. Eight analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $19.12.

Insider Activity

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $13.11, for a total value 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 450,000 shares of company stock valued at $5,687,074. 57.68% of the stock is owned by corporate insiders.

Institutional Trading of Rocket Companies

Several large investors have recently added to or reduced their stakes in RKT. B. Riley Wealth Advisors Inc. acquired a new position in shares of Rocket Companies in the third quarter valued at about $254,000. Farther Finance Advisors LLC lifted its holdings in shares of Rocket Companies by 12.7% during the third quarter. Farther Finance Advisors LLC now owns 32,318 shares of the company’s stock worth $372,000 after purchasing an additional 3,652 shares during the period. Envestnet Portfolio Solutions Inc. acquired a new stake in shares of Rocket Companies during the second quarter worth about $164,000. Integrated Wealth Concepts LLC lifted its holdings in shares of Rocket Companies by 32.8% during the second quarter. Integrated Wealth Concepts LLC now owns 142,805 shares of the company’s stock worth $2,249,000 after purchasing an additional 35,239 shares during the period. Finally, Nykredit A S purchased a new stake in Rocket Companies in the second quarter valued at approximately $2,980,000. Hedge funds and other institutional investors own 4.59% of the company’s stock.

Rocket Companies Trading Down 0.0%

The stock has a 50-day moving average of $13.09 and a 200 day moving average of $13.90. The stock has a market cap of $30.77 billion, a PE ratio of 77.61, a price-to-earnings-growth ratio of 3.18 and a beta of 2.23. The company has a quick ratio of 4.85, a current 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 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 for the quarter, compared to the consensus estimate of $2.81 billion. During the same quarter in the prior year, the company earned $0.04 EPS. Rocket Companies’s quarterly revenue was up 91.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Rocket Companies, Inc. will post 0.49 earnings per share for the current year.

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.