Rocket Companies (NYSE:RKT) Stock Price Target Cut by Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Rocket Companies’ price target from $16 to $14 while maintaining a “sector perform” rating, implying roughly 12.5% upside from the stock’s $12.45 price.
• Analyst sentiment remains broadly positive, with eight Buy ratings and seven Holds; MarketBeat reports a “Moderate Buy” consensus and an average target of $18.71.
• Rocket exceeded quarterly EPS expectations and delivered 37.4% year-over-year revenue growth, but housing affordability, high mortgage rates and cautious fourth-quarter guidance remain key risks.

Rocket Companies (NYSE:RKT - Get Free Report) had its target price cut by Royal Bank Of Canada from $16.00 to $14.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price target would indicate a potential upside of 12.49% from the company's current price.

A number of other research analysts also recently commented on RKT. Morgan Stanley set a $16.00 price objective on shares of Rocket Companies and gave the company an "overweight" rating in a research report on Monday, October 12th. Wells Fargo & Company set a $13.00 target price on shares of Rocket Companies and gave the stock an "equal weight" rating in a research report on Tuesday, October 6th. Weiss Ratings raised shares of Rocket Companies from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. JPMorgan Chase & Co. lowered their price target on shares of Rocket Companies from $14.00 to $12.50 and set a "neutral" rating on the stock in a report on Monday, October 12th. Finally, Benchmark lowered their price target on shares of Rocket Companies from $21.00 to $19.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.71.

Rocket Companies Stock Up 4.4%

NYSE RKT traded up $0.53 during trading on Friday, reaching $12.45. 20,933,608 shares of the company's stock were exchanged, compared to its average volume of 30,196,475. Rocket Companies has a fifty-two week low of $10.18 and a fifty-two week high of $24.36. The firm has a market capitalization of $35.24 billion, a PE ratio of 89.18, a P/E/G ratio of 3.46 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. The company's fifty day simple moving average is $12.40 and its 200-day simple moving average is $14.81.

Rocket Companies (NYSE:RKT - Get Free Report) last issued its earnings results on Thursday, October 29th. The company reported $0.15 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.01. The company had revenue of $2.57 billion for the quarter, compared to the consensus estimate of $2.58 billion. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%. The firm's quarterly revenue was up 37.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.07 EPS. Sell-side analysts predict that Rocket Companies will post 0.48 EPS for the current year.

Insider Buying and Selling at Rocket Companies

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the business's stock in a transaction that occurred 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 completion of the sale, the insider directly owned 7,953,027 shares in the company, valued at approximately $104,264,183.97. The trade was a 2.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 450,000 shares of company stock valued at $5,687,074. 57.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rocket Companies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RKT. Amundi grew its holdings in shares of Rocket Companies by 152.1% during the 1st quarter. Amundi now owns 13,725,878 shares of the company's stock worth $195,594,000 after purchasing an additional 8,280,463 shares in the last quarter. Andra AP fonden raised its stake in shares of Rocket Companies by 48.0% in the first quarter. Andra AP fonden now owns 729,357 shares of the company's stock valued at $10,393,000 after purchasing an additional 236,632 shares in the last quarter. Swiss National Bank lifted its position in Rocket Companies by 7.2% in 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 during the period. 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. Finally, Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Rocket Companies during the second quarter worth $67,795,000. Institutional investors and hedge funds own 4.59% of the company's stock.

Rocket Companies News Roundup

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

• Positive Sentiment: Profitability exceeded expectations. Rocket reported third-quarter adjusted EPS of $0.15, ahead of the $0.14 consensus estimate and more than double the $0.07 reported a year earlier. Adjusted revenue reached $2.57 billion, while GAAP net income was $709 million and adjusted net income was $419 million. Rocket Companies Announces Third Quarter 2026 Results
• Positive Sentiment: Strong year-over-year growth reinforced the earnings reaction. Revenue increased substantially from the prior-year period, and analysts characterized the quarter as an upside earnings surprise with improving profitability despite elevated mortgage rates. Rocket Companies Q3 earnings surprise to the upside as profitability improves
• Neutral Sentiment: Analyst sentiment remains favorable. Brokerages cited an average price target of approximately $18.88, well above the recent trading level, but targets may change following the earnings release. Rocket Companies consensus price target
• Negative Sentiment: Housing affordability remains a headwind. U.S. home-sale prices recently declined for the first time in more than three years, while mortgage payments remain near record highs. These conditions could weigh on purchase activity and mortgage demand. U.S. Home-Sale Prices Just Fell for the First Time in 3 Years
• Negative Sentiment: Fourth-quarter guidance was cautious. Rocket expects Q4 revenue of $2.10 billion to $2.30 billion, implying a sequential slowdown from Q3 and keeping the stock sensitive to interest rates and housing-market conditions. Rocket Companies Q4 revenue outlook

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.

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