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

Rocket Companies, Inc. (NYSE:RKT)’s share price 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.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on RKT. JPMorgan Chase & Co. decreased their price objective on shares of Rocket Companies from $14.00 to $12.50 and set a “neutral” rating for the company in a research report on Monday. Stephens dropped their price objective on Rocket Companies from $22.50 to $20.00 and set an “overweight” rating on the stock in a report on Friday, August 7th. Barclays cut their target price on Rocket Companies from $17.00 to $15.00 and set an “overweight” rating on the stock in a research report on Monday, October 5th. Royal Bank Of Canada reiterated 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. Finally, Keefe, Bruyette & Woods decreased their price target on shares of Rocket Companies from $20.00 to $19.00 and set an “outperform” rating for the company in a research report on Monday, August 10th. Eight investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $19.12.

Rocket Companies Stock Up 3.8%

The firm has a market capitalization 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 stock has a 50 day moving average of $13.02 and a 200 day moving average of $13.87. 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 announced its quarterly earnings data on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.16. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%. The firm had revenue of $2.76 billion for the quarter, compared to analysts’ expectations of $2.81 billion. During the same quarter in the prior year, the firm posted $0.04 earnings per share. Rocket Companies’s revenue for the quarter was up 91.9% compared to the same quarter last year. As a group, analysts expect that Rocket Companies, Inc. will post 0.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Rocket Companies

In related news, CEO Jesse Bray sold 92,300 shares of the company’s stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $12.39, for a total transaction of $1,143,597.00. Following the sale, the chief executive officer directly owned 7,728,027 shares of the company’s stock, valued at approximately $95,750,254.53. This represents a 1.18% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 450,000 shares of company stock valued at $5,687,074. 57.68% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rocket Companies

A number of hedge funds have recently added to or reduced their stakes in RKT. 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 valued at $195,594,000 after acquiring an additional 8,280,463 shares in the last quarter. Andra AP fonden raised its holdings in Rocket Companies by 48.0% during the first quarter. Andra AP fonden now owns 729,357 shares of the company’s stock worth $10,393,000 after purchasing an additional 236,632 shares in the last quarter. Swiss National Bank raised its holdings in Rocket Companies by 7.2% during the first quarter. Swiss National Bank now owns 2,696,000 shares of the company’s stock worth $38,418,000 after purchasing an additional 180,500 shares in the last quarter. OCO Capital Partners L.P. acquired a new stake in Rocket Companies in the fourth quarter worth approximately $68,728,000. Finally, Maple Rock Capital Partners Inc. lifted its position in Rocket Companies by 76.9% in the second quarter. Maple Rock Capital Partners Inc. now owns 5,543,600 shares of the company’s stock worth $87,312,000 after purchasing an additional 2,410,400 shares during the period. Institutional investors and hedge funds own 4.59% of the company’s stock.

Rocket Companies Company Profile

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.