DNB Asset Management AS Makes New $3.32 Million Investment in Rocket Companies, Inc. $RKT

Key Points

• DNB Asset Management AS opened a new position in Rocket Companies during the fourth quarter, buying 171,439 shares worth about $3.32 million.
• Other institutions also increased their holdings, though institutional ownership remains relatively modest at 4.59% of the stock.
• Analyst sentiment is mixed but leans constructive: Rocket Companies has a Moderate Buy consensus with an average price target of $20.93, even as several firms recently trimmed targets.

DNB Asset Management AS acquired a new stake in shares of Rocket Companies, Inc. (NYSE:RKT - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 171,439 shares of the company's stock, valued at approximately $3,319,000.

A number of other large investors have also bought and sold shares of the business. ORG Partners LLC increased its stake in Rocket Companies by 22.3% during the 4th quarter. ORG Partners LLC now owns 2,857 shares of the company's stock worth $55,000 after purchasing an additional 520 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in Rocket Companies by 3.5% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 18,817 shares of the company's stock worth $365,000 after purchasing an additional 636 shares in the last quarter. Composition Wealth LLC increased its stake in Rocket Companies by 2.7% during the 4th quarter. Composition Wealth LLC now owns 25,323 shares of the company's stock worth $490,000 after purchasing an additional 668 shares in the last quarter. Parallel Advisors LLC increased its stake in Rocket Companies by 26.1% during the 3rd quarter. Parallel Advisors LLC now owns 3,267 shares of the company's stock worth $63,000 after purchasing an additional 677 shares in the last quarter. Finally, NewEdge Wealth LLC increased its stake in Rocket Companies by 5.7% during the 4th quarter. NewEdge Wealth LLC now owns 13,204 shares of the company's stock worth $256,000 after purchasing an additional 707 shares in the last quarter. 4.59% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on RKT shares. JPMorgan Chase & Co. lowered their target price on Rocket Companies from $24.00 to $16.50 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Barclays upgraded Rocket Companies from an "equal weight" rating to an "overweight" rating and cut their target price for the company from $22.00 to $19.00 in a research note on Monday, April 6th. Wells Fargo & Company cut their target price on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 9th. Stephens assumed coverage on Rocket Companies in a research note on Thursday, April 23rd. They issued an "overweight" rating and a $22.50 target price on the stock. Finally, Compass Point assumed coverage on Rocket Companies in a research note on Tuesday, March 10th. They issued a "buy" rating and a $21.00 target price on the stock. Nine analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, Rocket Companies has a consensus rating of "Moderate Buy" and an average price target of $20.93.

More Rocket Companies News

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

• Positive Sentiment: Rocket Mortgage and Redfin launched a new homebuyer savings program that can cut costs by up to $20,000 for eligible buyers who buy, sell, and finance through the two platforms. The offer may strengthen Rocket’s funnel by making its mortgage and brokerage ecosystem more attractive to consumers. Article: Rocket and Redfin Boost Home Affordability With New Offer, Saving Buyers Up To $20,000
• Positive Sentiment: Redfin reported that U.S. pending home sales surged, which is a favorable sign for Rocket Companies because stronger housing transaction activity can translate into more mortgage demand. Article: Why Rocket Companies (RKT) Stock Is Trading Up Today
• Neutral Sentiment: Redfin also said home price cuts are becoming slightly less common as the housing market stabilizes, suggesting improving conditions, but the impact on Rocket’s earnings is indirect and depends on whether buyer demand continues to build. Article: Price Drops Are Becoming Slightly Less Common As Housing Market Stabilizes
• Neutral Sentiment: Rocket’s presentation at the J.P. Morgan technology, media, and communications conference adds no clear new operating update in the headline alone, so it is less likely to be the primary driver of the stock move without additional details from the transcript. Article: Rocket Companies, Inc. Presents at J.P. Morgan Conference Transcript
• Negative Sentiment: A Seeking Alpha downgrade argued Rocket is a “bad bet” as housing conditions tighten. While opinionated, it reflects ongoing investor concern that a softer housing backdrop could limit upside. Article: Rocket Companies: A Bad Bet As Housing Conditions Tighten (Downgrade)

Rocket Companies Trading Down 3.1%

NYSE RKT opened at $12.64 on Wednesday. The stock has a market capitalization of $35.65 billion, a price-to-earnings ratio of 252.82 and a beta of 2.23. The stock's 50 day moving average price is $14.74 and its two-hundred day moving average price is $17.51. 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 52 week low of $12.03 and a 52 week high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.15 EPS for the quarter, beating 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 for the quarter, compared to analysts' expectations of $2.76 billion. During the same quarter in the previous year, the business posted $0.04 EPS. The business's quarterly revenue was up 167.1% compared to the same quarter last year. As a group, analysts anticipate that Rocket Companies, Inc. will post 0.63 earnings per share for the current fiscal year.

Rocket Companies 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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