Aragon Global Management LP Acquires Shares of 422,400 Rocket Companies, Inc. $RKT

Key Points

• Aragon Global Management acquired a new stake of 422,400 shares of Rocket Companies (NYSE:RKT) in Q3 valued at about $8.19 million, representing ~2.5% of its portfolio and the firm's 14th-largest holding.
• Analysts show a consensus Hold rating on RKT with an average price target of $20.67 (6 Buys, 10 Holds, 1 Sell), while several firms recently set targets in the roughly $17–$22 range.
• Rocket beat the quarter’s estimates with EPS of $0.11 versus $0.09 and revenue of $2.44 billion versus $2.24 billion, a 52.2% year-over-year revenue increase despite a negative net margin.

Aragon Global Management LP acquired a new stake in Rocket Companies, Inc. (NYSE:RKT - Free Report) in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 422,400 shares of the company's stock, valued at approximately $8,186,000. Rocket Companies comprises approximately 2.5% of Aragon Global Management LP's investment portfolio, making the stock its 14th largest position.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Wellington Management Group LLP increased its position in Rocket Companies by 30.6% during the third quarter. Wellington Management Group LLP now owns 6,298,220 shares of the company's stock valued at $122,060,000 after acquiring an additional 1,474,040 shares during the last quarter. Bank of Hawaii bought a new stake in shares of Rocket Companies in the 3rd quarter worth about $894,000. Slotnik Capital LLC purchased a new position in shares of Rocket Companies during the 3rd quarter worth about $1,507,000. Newbridge Financial Services Group Inc. boosted its stake in shares of Rocket Companies by 875.0% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 1,950 shares of the company's stock worth $38,000 after purchasing an additional 1,750 shares during the period. Finally, Pinnbrook Capital Management LP bought a new position in Rocket Companies during the 3rd quarter valued at about $5,699,000. Hedge funds and other institutional investors own 4.59% of the company's stock.

Insider Transactions at Rocket Companies

In other news, Director Matthew Rizik sold 2,500 shares of the company's stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $22.99, for a total value of $57,475.00. Following the completion of the sale, the director directly owned 1,038,536 shares in the company, valued at $23,875,942.64. This represents a 0.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last three months, insiders have sold 22,500 shares of company stock worth $453,775. 92.64% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Keefe, Bruyette & Woods upped their target price on Rocket Companies from $18.00 to $20.00 and gave the company a "market perform" rating in a research note on Thursday, December 18th. Compass Point started coverage on Rocket Companies in a report on Tuesday. They set a "buy" rating and a $21.00 price objective for the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Rocket Companies in a research report on Monday, December 29th. Barclays set a $22.00 target price on Rocket Companies and gave the stock an "equal weight" rating in a research note on Tuesday, January 6th. Finally, Wells Fargo & Company lifted their target price on Rocket Companies from $17.00 to $19.00 and gave the stock an "equal weight" rating in a research report on Friday, February 27th. Six research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Rocket Companies has a consensus rating of "Hold" and an average price target of $20.67.

Rocket Companies Price Performance

Rocket Companies stock opened at $14.14 on Friday. The company has a debt-to-equity ratio of 1.07, a quick ratio of 70.90 and a current ratio of 70.90. The company's fifty day moving average price is $19.22 and its 200 day moving average price is $18.72. The stock has a market capitalization of $29.75 billion, a P/E ratio of -108.73 and a beta of 2.30. Rocket Companies, Inc. has a 1 year low of $10.94 and a 1 year high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.02. The business had revenue of $2.44 billion for the quarter, compared to analyst estimates of $2.24 billion. Rocket Companies had a negative net margin of 1.02% and a positive return on equity of 3.04%. The company's revenue for the quarter was up 52.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.04 earnings per share. As a group, equities research analysts anticipate that Rocket Companies, Inc. will post 0.15 earnings per share for the current fiscal year.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company's core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.

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