Rocket Companies, Inc. $RKT Shares Acquired by Motley Fool Asset Management LLC

Key Points

• Motley Fool Asset Management dramatically increased its Rocket Companies stake by 667.8% in Q4, ending with 262,536 shares valued at about $5.1 million.
• Rocket Companies shares were down 4.3% and recently traded near their 52-week low, even as the company’s latest earnings beat estimates with $0.15 EPS and $2.82 billion in revenue.
• Analyst sentiment remains mixed: the stock carries a Moderate Buy consensus, but several firms recently cut price targets while the company also announced an upsized senior notes offering, adding to debt-related concerns.

Motley Fool Asset Management LLC raised its stake in shares of Rocket Companies, Inc. (NYSE:RKT - Free Report) by 667.8% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 262,536 shares of the company's stock after buying an additional 228,341 shares during the quarter. Motley Fool Asset Management LLC's holdings in Rocket Companies were worth $5,083,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. Pinnacle Bancorp Inc. grew its holdings in Rocket Companies by 369.7% during the 4th quarter. Pinnacle Bancorp Inc. now owns 1,503 shares of the company's stock valued at $29,000 after buying an additional 1,183 shares during the last quarter. City State Bank acquired a new stake in Rocket Companies during the 4th quarter valued at $30,000. Smithfield Trust Co acquired a new stake in Rocket Companies during the 4th quarter valued at $32,000. Key Financial Inc acquired a new stake in Rocket Companies during the 4th quarter valued at $32,000. Finally, Private Capital Management LLC acquired a new stake in Rocket Companies during the 3rd quarter valued at $182,000. Institutional investors and hedge funds own 4.59% of the company's stock.

Rocket Companies Trading Down 4.3%

Shares of Rocket Companies stock opened at $12.61 on Thursday. The company has a quick ratio of 4.37, a current ratio of 4.37 and a debt-to-equity ratio of 1.13. The firm has a market cap of $35.68 billion, a PE ratio of 252.22 and a beta of 2.19. The business's fifty day moving average is $14.48 and its two-hundred day moving average is $17.15. Rocket Companies, Inc. has a fifty-two week low of $12.17 and a fifty-two week high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last issued 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 business had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.76 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The business's quarterly revenue was up 167.1% on a year-over-year basis. During the same period last year, the company posted $0.04 EPS. Analysts anticipate that Rocket Companies, Inc. will post 0.65 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Zacks Research upgraded Rocket Companies from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 12th. Wells Fargo & Company lowered their target price on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating on the stock in a report on Thursday, April 9th. JPMorgan Chase & Co. lowered their target price on Rocket Companies from $24.00 to $16.50 and set a "neutral" rating on the stock in a report on Thursday, April 9th. Citizens Jmp assumed coverage on Rocket Companies in a report on Wednesday, March 25th. They set a "market perform" rating on the stock. Finally, Weiss Ratings upgraded Rocket Companies from a "sell (d)" rating to a "hold (c)" rating in a report on Wednesday, May 13th. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $20.93.

Rocket Companies News Roundup

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

• Positive Sentiment: Shareholders approved Rocket Companies’ directors and equity compensation plan at the 2026 Annual Meeting, removing a potential governance overhang and signaling continued stockholder support. Rocket Companies Shareholders Back Directors and Equity Plan
• Neutral Sentiment: Redfin, which is powered by Rocket, reported that housing conditions are increasingly favoring buyers in several markets, highlighting continued softness and affordability pressure in the broader mortgage and homebuying environment. Nashville, Miami and Austin—Once Pandemic Homebuying Hotspots—Are This Spring’s Strongest Buyer’s Markets
• Negative Sentiment: Rocket Companies announced and then upsized a private offering of senior notes due 2031 and 2034 from $1.2 billion to $1.5 billion, increasing debt obligations and potentially weighing on earnings quality and investor sentiment. Rocket Companies Announces Upsizing and Pricing of Senior Notes due 2031 and Senior Notes due 2034
• Negative Sentiment: The company also disclosed an earlier proposed $1.2 billion senior notes offering, reinforcing concerns that Rocket is leaning more heavily on debt financing in a still-challenging housing market. Rocket Companies Announces Offering of Senior Notes due 2031 and Senior Notes due 2034

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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