Clearline Capital LP Sells 600,321 Shares of Rocket Companies, Inc. $RKT

Key Points

• Clearline Capital LP cut its stake in Rocket Companies by 88.0% in Q3, selling 600,321 shares and leaving 81,955 shares valued at about $1.588 million.
• Corporate insiders hold 92.64% of RKT and have sold 22,500 shares in the past 90 days, including Director Matthew Rizik's sale of 2,500 shares at $22.99.
• Analysts' consensus is a Hold with an average price target of $20.67; RKT recently beat EPS estimates and reported 52% revenue growth but trades near $14.14 (1‑year range $10.94–$24.36).

Clearline Capital LP reduced its stake in Rocket Companies, Inc. (NYSE:RKT - Free Report) by 88.0% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 81,955 shares of the company's stock after selling 600,321 shares during the period. Clearline Capital LP's holdings in Rocket Companies were worth $1,588,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of the stock. PNC Financial Services Group Inc. boosted its holdings in shares of Rocket Companies by 18.4% during the 2nd quarter. PNC Financial Services Group Inc. now owns 3,890 shares of the company's stock worth $55,000 after buying an additional 605 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Rocket Companies by 3.5% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 18,817 shares of the company's stock valued at $365,000 after buying an additional 636 shares during the last quarter. Miller Wealth Advisors LLC raised its holdings in Rocket Companies by 65.0% in the 3rd quarter. Miller Wealth Advisors LLC now owns 1,650 shares of the company's stock valued at $32,000 after acquiring an additional 650 shares during the period. Parallel Advisors LLC raised its holdings in Rocket Companies by 26.1% in the 3rd quarter. Parallel Advisors LLC now owns 3,267 shares of the company's stock valued at $63,000 after acquiring an additional 677 shares during the period. Finally, Amundi lifted its position in Rocket Companies by 2.3% during the second quarter. Amundi now owns 34,170 shares of the company's stock worth $498,000 after acquiring an additional 754 shares during the last quarter. Institutional investors and hedge funds own 4.59% of the company's stock.

Analyst Upgrades and Downgrades

RKT has been the subject of a number of research analyst reports. BTIG Research restated a "buy" rating and set a $25.00 price objective on shares of Rocket Companies in a report on Wednesday, November 19th. Compass Point began coverage on Rocket Companies in a report on Tuesday, March 10th. They set a "buy" rating and a $21.00 price target for the company. Barclays set a $22.00 price target on Rocket Companies and gave the company an "equal weight" rating in a research note on Tuesday, January 6th. JPMorgan Chase & Co. initiated coverage on Rocket Companies in a research report on Monday, January 12th. They set a "neutral" rating and a $24.00 price objective on the stock. Finally, Jefferies Financial Group initiated coverage on Rocket Companies in a report on Friday, December 19th. They set a "buy" rating and a $25.00 target price for the company. Six research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $20.67.

Insider Buying and Selling at Rocket Companies

In other news, Director Matthew Rizik sold 2,500 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $22.99, for a total transaction of $57,475.00. Following the sale, the director directly owned 1,038,536 shares of the company's stock, valued at approximately $23,875,942.64. This represents a 0.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In the last ninety days, insiders sold 22,500 shares of company stock worth $453,775. Corporate insiders own 92.64% of the company's stock.

Rocket Companies Stock Down 3.1%

NYSE RKT opened at $14.14 on Friday. The company has a current ratio of 70.90, a quick ratio of 70.90 and a debt-to-equity ratio of 1.07. The company has a market cap of $29.75 billion, a price-to-earnings ratio of -108.73 and a beta of 2.30. The company has a 50 day moving average of $19.22 and a 200-day moving average of $18.72. 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 issued its quarterly earnings results on Thursday, February 26th. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.09 by $0.02. Rocket Companies had a positive return on equity of 3.04% and a negative net margin of 1.02%.The business had revenue of $2.44 billion for the quarter, compared to the consensus estimate of $2.24 billion. During the same quarter in the prior year, the business posted $0.04 earnings per share. The firm's quarterly revenue was up 52.2% compared to the same quarter last year. On average, equities research analysts expect 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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