Empowered Funds LLC Increases Stock Holdings in Rocket Companies, Inc. $RKT

Key Points

• Empowered Funds LLC increased its Rocket Companies stake by 160.6% in the first quarter, ending with 173,262 shares valued at approximately $2.47 million. Other major institutions, including Vanguard, Morgan Stanley and State Street, also significantly increased their holdings.
• Analyst sentiment is cautiously positive, with Rocket receiving a “Moderate Buy” consensus rating and an average price target of $20.73, although several firms recently lowered their targets or maintained neutral ratings.
• Rocket shares opened at $13.87, near the lower end of their $12.17–$24.36 12-month range. Investors are focused on upcoming quarterly results, particularly mortgage production, margins, operating metrics and management’s outlook, amid continued broader housing-affordability pressures.

Empowered Funds LLC increased its stake in shares of Rocket Companies, Inc. (NYSE:RKT - Free Report) by 160.6% during the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 173,262 shares of the company's stock after acquiring an additional 106,779 shares during the period. Empowered Funds LLC's holdings in Rocket Companies were worth $2,469,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in shares of Rocket Companies by 280.3% during the fourth quarter. Vanguard Group Inc. now owns 87,256,540 shares of the company's stock worth $1,689,287,000 after purchasing an additional 64,311,040 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Rocket Companies by 11,636.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 26,189,869 shares of the company's stock valued at $507,037,000 after purchasing an additional 25,966,725 shares in the last quarter. Morgan Stanley increased its stake in Rocket Companies by 461.2% during the 4th quarter. Morgan Stanley now owns 27,009,279 shares of the company's stock worth $522,900,000 after buying an additional 22,196,782 shares during the period. State Street Corp increased its stake in Rocket Companies by 323.9% during the 4th quarter. State Street Corp now owns 20,688,336 shares of the company's stock worth $400,526,000 after buying an additional 15,807,776 shares during the period. Finally, ValueAct Holdings L.P. lifted its holdings in Rocket Companies by 55.1% in the 4th quarter. ValueAct Holdings L.P. now owns 39,380,652 shares of the company's stock worth $762,409,000 after buying an additional 13,985,025 shares in the last quarter. Institutional investors and hedge funds own 4.59% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on RKT shares. Zacks Research upgraded Rocket Companies from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 12th. Weiss Ratings upgraded Rocket Companies from a "sell (d)" rating to a "hold (c)" rating in a research note on Wednesday, May 13th. JPMorgan Chase & Co. reduced their price target on Rocket Companies from $16.00 to $15.50 and set a "neutral" rating for the company in a report on Monday, July 13th. Barclays dropped their price objective on Rocket Companies from $19.00 to $17.00 and set an "overweight" rating on the stock in a report on Tuesday, July 7th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $20.00 target price on shares of Rocket Companies in a research report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $20.73.

Key Stories Impacting Rocket Companies

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

• Positive Sentiment: Rocket Companies saw unusually strong call-option activity, with investors purchasing 72,848 calls—49% above average volume. This may indicate speculative bullish positioning ahead of earnings, although options activity is not a guarantee of future performance.
• Positive Sentiment: Affordability for U.S. starter homes improved for the eighth consecutive month, while the income needed to purchase a typical starter home declined 1.5% year over year. Improving entry-level affordability could support housing demand and mortgage origination activity for Rocket. Redfin Reports Affordability For U.S. Starter Homes Improves Slightly Faster Than Overall Market
• Neutral Sentiment: Rocket is scheduled to report second-quarter results tomorrow. Investors are likely focused on revenue, mortgage production, gain-on-sale margins, and management’s outlook, making the report a near-term catalyst for the stock. Earnings to watch: Rocket Companies reports Q2 results tomorrow
• Neutral Sentiment: Wall Street’s preview of Rocket’s second-quarter results is highlighting operating metrics beyond headline revenue and earnings estimates. The analysis reinforces that the market will scrutinize the quality and sustainability of the quarter’s performance. Wall Street’s Insights Into Key Metrics Ahead of Rocket Companies Q2 Earnings
• Neutral Sentiment: RBC Capital maintained a Hold rating on Rocket Companies, signaling neither a strong bullish nor bearish view and potentially limiting positive analyst-driven momentum. RBC Capital Sticks to Their Hold Rating for Rocket Companies
• Negative Sentiment: Affordability for a typical U.S. home remains strained: required income is near a record $110,000 and approximately $22,000 above median household income. Persistent affordability challenges could weigh on overall home transactions and mortgage demand, despite improvement among starter-home buyers. The Income Needed to Afford Typical American Home Holds Steady Near Record High

Rocket Companies Stock Performance

Rocket Companies stock opened at $13.87 on Thursday. The company has a debt-to-equity ratio of 1.13, a current ratio of 4.37 and a quick ratio of 4.37. Rocket Companies, Inc. has a 12 month low of $12.17 and a 12 month high of $24.36. The company has a fifty day moving average price of $14.04 and a two-hundred day moving average price of $15.55. The company has a market cap of $39.23 billion, a PE ratio of 277.30 and a beta of 2.19.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.03. Rocket Companies had a net margin of 2.78% and a return on equity of 4.30%. The company had revenue of $2.82 billion for the quarter, compared to the consensus estimate of $2.76 billion. During the same period last year, the firm posted $0.04 EPS. The company's revenue for the quarter was up 167.1% on a year-over-year basis. Research analysts expect that Rocket Companies, Inc. will post 0.54 earnings per share for the current 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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