Bank of New York Mellon Corp Grows Position in Rocket Companies, Inc. $RKT

Key Points

• Bank of New York Mellon boosted its stake in Rocket Companies by 46.3% in the fourth quarter, ending with 3.9 million shares valued at about $75.5 million. Other institutional investors also increased or initiated positions, though hedge funds and institutions still own only 4.59% of the stock.
• Wall Street sentiment is mixed but constructive: analysts currently have a consensus rating of Moderate Buy with a target price of $20.93. Recent calls included both upgrades and price-target cuts, reflecting uncertainty around the stock.
• Rocket Companies reported solid quarterly results, with EPS of $0.15 versus $0.12 expected and revenue of $2.82 billion, up 167.1% year over year. The company also priced an upsized debt offering of $1.5 billion, while trading remained under pressure from high mortgage rates and weak housing-market visibility.

Bank of New York Mellon Corp increased its position in shares of Rocket Companies, Inc. (NYSE:RKT - Free Report) by 46.3% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 3,901,730 shares of the company's stock after buying an additional 1,234,278 shares during the period. Bank of New York Mellon Corp owned about 0.19% of Rocket Companies worth $75,537,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. Bridges Investment Management Inc. boosted its holdings in Rocket Companies by 8.5% in the fourth quarter. Bridges Investment Management Inc. now owns 11,045 shares of the company's stock valued at $214,000 after purchasing an additional 869 shares in the last quarter. Natixis Advisors LLC boosted its holdings in Rocket Companies by 1,213.2% in the fourth quarter. Natixis Advisors LLC now owns 267,031 shares of the company's stock valued at $5,170,000 after purchasing an additional 246,696 shares in the last quarter. AXQ Capital LP boosted its holdings in Rocket Companies by 701.3% in the fourth quarter. AXQ Capital LP now owns 163,842 shares of the company's stock valued at $3,172,000 after purchasing an additional 143,396 shares in the last quarter. Lingotto Investment Management LLP acquired a new position in Rocket Companies in the fourth quarter valued at approximately $5,806,000. Finally, BW Gestao de Investimentos Ltda. acquired a new position in Rocket Companies in the fourth quarter valued at approximately $475,000. 4.59% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

RKT has been the subject of a number of research analyst reports. Barclays raised Rocket Companies from an "equal weight" rating to an "overweight" rating and lowered their price target for the company from $22.00 to $19.00 in a report on Monday, April 6th. Zacks Research raised Rocket Companies from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 12th. Wells Fargo & Company decreased their price objective on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating for the company in a report on Thursday, April 9th. Keefe, Bruyette & Woods decreased their price objective on Rocket Companies from $22.00 to $21.00 and set an "outperform" rating for the company in a report on Tuesday, May 12th. Finally, Citizens Jmp assumed coverage on Rocket Companies in a report on Wednesday, March 25th. They issued a "market perform" rating for the company. Nine equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $20.93.

Trending Headlines about Rocket Companies

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

• Positive Sentiment: Rocket Companies priced an upsized private debt offering, raising $1.5 billion instead of the initially planned $1.2 billion, which provides additional liquidity and financial flexibility. Rocket Companies Announces Upsizing and Pricing of Senior Notes due 2031 and Senior Notes due 2034
• Positive Sentiment: Redfin, which is powered by Rocket, reported that U.S. home sales reached their highest level since late 2022, suggesting some improvement in housing-market activity that could support Rocket’s broader real-estate platform. Rising Rates Stall Housing Market Momentum Just After Closed Home Sales Hit Highest Level Since 2022
• Neutral Sentiment: Rocket also announced a separate $1.2 billion senior notes offering earlier in the day, reinforcing that the company is actively refinancing or funding its balance sheet, but the announcement itself does not clearly signal operating strength or weakness. Rocket Companies Announces Offering of Senior Notes due 2031 and Senior Notes due 2034
• Neutral Sentiment: Market commentary highlights Rocket as a fintech name to watch, but this is more of a sector mention than a company-specific catalyst. Fintech Stocks To Add to Your Watchlist - June 6th
• Negative Sentiment: Recent coverage says Rocket stock has fallen sharply over the past week amid high mortgage rates, weak home sales, and limited refinancing visibility, which remains a key headwind for the business. RKT Falls Sharply in a Week: What's Keeping Investors on the Sidelines?

Rocket Companies Trading Up 6.9%

NYSE:RKT opened at $13.20 on Wednesday. The stock has a fifty day moving average price of $14.49 and a two-hundred day moving average price of $17.18. The stock has a market capitalization of $37.36 billion, a price-to-earnings ratio of 264.08 and a beta of 2.19. The company has a debt-to-equity ratio of 1.13, a quick ratio of 4.37 and a current ratio of 4.37. Rocket Companies, Inc. has a 1 year low of $12.17 and a 1 year high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.03. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The firm had revenue of $2.82 billion during the quarter, compared to analysts' expectations of $2.76 billion. During the same quarter in the prior year, the business posted $0.04 earnings per share. Rocket Companies's revenue was up 167.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Rocket Companies, Inc. will post 0.65 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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