Rocket Companies Target of Unusually Large Options Trading (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) was the target of some unusual options trading activity on Wednesday. Traders acquired 64,478 call options on the company. This represents an increase of approximately 348% compared to the average volume of 14,379 call options.

Rocket Companies Stock Up 11.1 %

NYSE RKT traded up $1.40 on Wednesday, reaching $14.00. 18,257,805 shares of the stock traded hands, compared to its average volume of 6,219,478. Rocket Companies has a 12 month low of $10.06 and a 12 month high of $21.38. The company has a market cap of $27.94 billion, a price-to-earnings ratio of -87.47 and a beta of 2.39. The company has a fifty day moving average price of $13.35 and a 200-day moving average price of $14.27. The company has a debt-to-equity ratio of 1.51, a quick ratio of 15.47 and a current ratio of 15.47.

Rocket Companies Cuts Dividend

The company also recently disclosed a dividend, which will be paid on Thursday, April 3rd. Investors of record on Thursday, March 20th will be issued a $0.80 dividend. The ex-dividend date is Thursday, March 20th. Rocket Companies’s payout ratio is currently 801.25%.

Institutional Trading of Rocket Companies

Hedge funds have recently added to or reduced their stakes in the business. Itau Unibanco Holding S.A. purchased a new position in Rocket Companies during the 4th quarter valued at about $47,000. KBC Group NV boosted its stake in shares of Rocket Companies by 58.1% during the fourth quarter. KBC Group NV now owns 6,056 shares of the company’s stock valued at $68,000 after purchasing an additional 2,226 shares in the last quarter. Sterling Capital Management LLC increased its holdings in Rocket Companies by 57.2% during the fourth quarter. Sterling Capital Management LLC now owns 8,295 shares of the company’s stock valued at $93,000 after buying an additional 3,019 shares during the period. Caisse Des Depots ET Consignations bought a new position in Rocket Companies in the fourth quarter worth approximately $99,000. Finally, Garner Asset Management Corp purchased a new stake in Rocket Companies during the fourth quarter worth $118,000. 4.59% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on RKT shares. The Goldman Sachs Group lowered their target price on shares of Rocket Companies from $16.00 to $14.00 and set a “neutral” rating for the company in a report on Tuesday, January 7th. Morgan Stanley dropped their target price on Rocket Companies from $16.00 to $13.00 and set an “equal weight” rating for the company in a research report on Thursday, December 19th. JPMorgan Chase & Co. cut their target price on Rocket Companies from $14.00 to $10.50 and set an “underweight” rating on the stock in a research note on Tuesday, January 14th. Wedbush reissued a “neutral” rating and set a $13.00 price target on shares of Rocket Companies in a research note on Wednesday, March 5th. Finally, Keefe, Bruyette & Woods raised Rocket Companies from an “underperform” rating to a “market perform” rating and set a $14.00 price objective on the stock in a research report on Wednesday. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $14.08.

About Rocket Companies

Rocket Companies, Inc, a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business.