Rocket Companies, Inc. (NYSE:RKT) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Rocket Companies has a “Moderate Buy” consensus rating from 18 analysts, split evenly between buy and hold recommendations. The average 12-month price target is $19.57, though several firms recently lowered their targets.
• RKT opened at $11.70, near its 12-month low of $11.25 and well below its high of $24.36. In its latest quarter, the company matched estimates with $0.16 EPS, while revenue rose 91.9% year over year to $2.76 billion but fell short of expectations.
• CEO Jesse Bray sold 132,700 shares under a pre-arranged plan to cover tax obligations, reducing his stake by 1.67%; insiders still own 57.68% of the company. Institutional investors have recently increased their holdings, including Amundi, which boosted its stake by 152.1%.

Shares of Rocket Companies, Inc. (NYSE:RKT - Get Free Report) have earned a consensus rating of "Moderate Buy" from the eighteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Nine analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. The average 12 month target price among analysts that have covered the stock in the last year is $19.57.

Several research firms recently commented on RKT. Benchmark cut 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. JPMorgan Chase & Co. decreased their price objective on shares of Rocket Companies from $15.50 to $14.00 and set a "neutral" rating for the company in a research note on Friday, August 7th. Stephens dropped their price objective on shares of Rocket Companies from $22.50 to $20.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Keefe, Bruyette & Woods dropped their price objective 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. Finally, Weiss Ratings downgraded shares of Rocket Companies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, August 21st.

Rocket Companies Price Performance

RKT stock opened at $11.70 on Friday. The stock has a 50-day moving average price of $13.40 and a two-hundred day moving average price of $14.05. Rocket Companies has a 12-month low of $11.25 and a 12-month high of $24.36. 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 has a market cap of $33.13 billion, a PE ratio of 83.58, a price-to-earnings-growth ratio of 3.21 and a beta of 2.23.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.16 EPS for the quarter, hitting analysts' consensus estimates of $0.16. The company had revenue of $2.76 billion for the quarter, compared to the consensus estimate of $2.81 billion. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%.The company's quarterly revenue was up 91.9% compared to the same quarter last year. During the same period last year, the business posted $0.04 EPS. As a group, research analysts predict that Rocket Companies will post 0.52 EPS for the current year.

Insider Transactions at Rocket Companies

In other Rocket Companies news, CEO Jesse Bray sold 132,700 shares of the firm's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $12.01, for a total value of $1,593,727.00. Following the transaction, the chief executive officer directly owned 7,820,327 shares of the company's stock, valued at $93,922,127.27. This trade represents a 1.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 57.68% of the company's stock.

Institutional Investors Weigh In On Rocket Companies

Institutional investors and hedge funds have recently modified their holdings of the stock. Amundi boosted its stake 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 purchasing an additional 8,280,463 shares during the period. Andra AP fonden increased its stake in Rocket Companies by 48.0% during the 1st quarter. Andra AP fonden now owns 729,357 shares of the company's stock worth $10,393,000 after buying an additional 236,632 shares during the period. Swiss National Bank increased its stake in Rocket Companies by 7.2% during the 1st quarter. Swiss National Bank now owns 2,696,000 shares of the company's stock worth $38,418,000 after buying an additional 180,500 shares during the period. OCO Capital Partners L.P. acquired a new position in Rocket Companies in the 4th quarter worth $68,728,000. Finally, Maple Rock Capital Partners Inc. lifted its holdings in Rocket Companies by 76.9% in the 2nd quarter. Maple Rock Capital Partners Inc. now owns 5,543,600 shares of the company's stock worth $87,312,000 after buying an additional 2,410,400 shares in the last quarter. Hedge funds and other institutional investors 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.

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