Gabelli Funds LLC Buys Shares of 152,500 Rocket Companies, Inc. $RKT

Key Points

• Gabelli Funds initiated a position of 152,500 Rocket Companies shares valued at approximately $2.17 million. Other institutional investors also increased or established holdings, but institutions and hedge funds collectively own just 4.59% of the stock.
• Rocket Companies recently exceeded earnings expectations, reporting $0.15 in quarterly EPS versus a $0.12 consensus estimate and $2.82 billion in revenue, up 167.1% year over year.
• RKT was trading at $13.69, near the lower end of its $12.17–$24.36 one-year range. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.73, despite mixed target-price changes.

Gabelli Funds LLC bought a new position in shares of Rocket Companies, Inc. (NYSE:RKT - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 152,500 shares of the company's stock, valued at approximately $2,173,000.

A number of other institutional investors have also made changes to their positions in RKT. Public Employees Retirement System of Ohio increased its position in shares of Rocket Companies by 7.6% during the first quarter. Public Employees Retirement System of Ohio now owns 561,187 shares of the company's stock valued at $7,997,000 after acquiring an additional 39,631 shares during the last quarter. Compass Rose Asset Management LP acquired a new position in shares of Rocket Companies in the 1st quarter worth approximately $15,532,000. Sei Investments Co. lifted its holdings in shares of Rocket Companies by 196.1% in the 1st quarter. Sei Investments Co. now owns 2,411,225 shares of the company's stock worth $34,361,000 after acquiring an additional 1,597,019 shares during the last quarter. Lido Advisors LLC purchased a new position in shares of Rocket Companies during the 1st quarter worth approximately $657,000. Finally, State of Wyoming boosted its position in shares of Rocket Companies by 138.8% during the 1st quarter. State of Wyoming now owns 67,562 shares of the company's stock worth $963,000 after purchasing an additional 39,271 shares during the period. 4.59% of the stock is currently owned by institutional investors and hedge funds.

Rocket Companies Trading Down 2.0%

NYSE RKT opened at $13.69 on Thursday. The company has a debt-to-equity ratio of 1.13, a quick ratio of 4.37 and a current ratio of 4.37. The firm has a market cap of $38.75 billion, a price-to-earnings ratio of 273.88 and a beta of 2.16. The firm has a 50 day simple moving average of $14.08 and a 200-day simple moving average of $15.89. Rocket Companies, Inc. has a one year low of $12.17 and a one year high of $24.36.

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

Analyst Ratings Changes

RKT has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods cut their target price on Rocket Companies from $21.00 to $20.00 and set an "outperform" rating on the stock in a research report on Thursday, June 25th. Zacks Research upgraded Rocket Companies from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 12th. Benchmark started coverage on Rocket Companies in a research report on Monday, June 29th. They set a "buy" rating and a $21.00 price target for the company. Morgan Stanley raised Rocket Companies from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $18.00 to $19.00 in a research note on Thursday, July 16th. Finally, JPMorgan Chase & Co. cut their price objective on Rocket Companies from $16.00 to $15.50 and set a "neutral" rating on the stock in a report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $20.73.

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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