Asset Management One Co. Ltd. Purchases New Shares in Rocket Companies, Inc. $RKT

Key Points

• Asset Management One bought a new stake of 343,410 shares (~$6.65M) in Rocket Companies during Q4, while other institutions made large moves—most notably ValueAct (25.4M shares, ~$492M) and Vanguard (22.95M shares, ~$444.7M).
• Analyst sentiment is mixed: Barclays upgraded to overweight but cut its target to $19, JPMorgan and Wells Fargo trimmed targets to $16.50 and $17, and the MarketBeat consensus remains a Hold with a $20.25 target.
• Shares opened at $15.26 and were down 4.1%; the company beat quarterly EPS and revenue estimates with revenue up 52.2% year-over-year, but still reports a negative net margin and a negative price-to-earnings ratio.

Asset Management One Co. Ltd. purchased a new stake in Rocket Companies, Inc. (NYSE:RKT - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 343,410 shares of the company's stock, valued at approximately $6,652,000.

Several other institutional investors and hedge funds have also modified their holdings of RKT. Durable Capital Partners LP acquired a new position in shares of Rocket Companies in the third quarter valued at about $213,010,000. ValueAct Holdings L.P. grew its stake in Rocket Companies by 67.9% during the third quarter. ValueAct Holdings L.P. now owns 25,395,627 shares of the company's stock worth $492,167,000 after buying an additional 10,270,018 shares in the last quarter. Fred Alger Management LLC grew its stake in Rocket Companies by 7,412.6% during the third quarter. Fred Alger Management LLC now owns 6,078,800 shares of the company's stock worth $117,807,000 after buying an additional 5,997,885 shares in the last quarter. Vanguard Group Inc. grew its stake in Rocket Companies by 29.5% during the third quarter. Vanguard Group Inc. now owns 22,945,500 shares of the company's stock worth $444,684,000 after buying an additional 5,226,931 shares in the last quarter. Finally, Alyeska Investment Group L.P. grew its stake in Rocket Companies by 229.5% during the third quarter. Alyeska Investment Group L.P. now owns 3,274,519 shares of the company's stock worth $63,460,000 after buying an additional 2,280,631 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on RKT shares. Barclays upgraded shares of Rocket Companies from an "equal weight" rating to an "overweight" rating and reduced their price target for the company from $22.00 to $19.00 in a research note on Monday, April 6th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Rocket Companies in a research report on Monday, December 29th. Wells Fargo & Company cut their target price on shares of Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. JPMorgan Chase & Co. cut their target price on shares of Rocket Companies from $24.00 to $16.50 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Finally, Compass Point started coverage on shares of Rocket Companies in a research report on Tuesday, March 10th. They set a "buy" rating and a $21.00 target price on the stock. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Rocket Companies presently has a consensus rating of "Hold" and a consensus target price of $20.25.

Rocket Companies Stock Down 4.1%

Rocket Companies stock opened at $15.26 on Thursday. The company has a debt-to-equity ratio of 1.07, a quick ratio of 70.90 and a current ratio of 70.90. Rocket Companies, Inc. has a 52-week low of $11.08 and a 52-week high of $24.36. The firm has a 50 day moving average price of $15.75 and a two-hundred day moving average price of $17.79. The firm has a market cap of $43.04 billion, a price-to-earnings ratio of -117.42 and a beta of 2.34.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.02. The firm had revenue of $2.44 billion during 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 was up 52.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.04 EPS. Equities analysts predict that Rocket Companies, Inc. will post 0.66 EPS for the current year.

Rocket Companies Company Profile

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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