Rocket Companies, Inc. $RKT Shares Bought by Davis Selected Advisers

Key Points

• Davis Selected Advisers increased its stake in Rocket Companies by 3.0% in Q4 to 3,227,910 shares (about $62.5M), while Vanguard dramatically raised its holding by 280.3% to 87,256,540 shares after buying ~64.3M shares.
• Rocket beat Q4 estimates (EPS $0.11 vs. $0.09; revenue $2.44B vs. $2.24B) with revenue up 52.2% YoY, but still shows a negative net margin (-1.02%) and a negative P/E (-112.7).
• Analysts are mixed: the consensus rating is Hold with an average target of $20.40, while the stock trades near $14.65 (12‑month range $11.08–$24.36), suggesting potential upside amid divergent views.

Davis Selected Advisers boosted its position in shares of Rocket Companies, Inc. (NYSE:RKT - Free Report) by 3.0% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 3,227,910 shares of the company's stock after buying an additional 93,676 shares during the quarter. Davis Selected Advisers owned approximately 0.15% of Rocket Companies worth $62,492,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Rocket Companies by 280.3% in the 4th quarter. Vanguard Group Inc. now owns 87,256,540 shares of the company's stock valued at $1,689,287,000 after buying an additional 64,311,040 shares in the last quarter. Durable Capital Partners LP purchased a new stake in Rocket Companies during the 3rd quarter worth approximately $213,010,000. ValueAct Holdings L.P. increased its stake in Rocket Companies by 67.9% during the 3rd quarter. ValueAct Holdings L.P. now owns 25,395,627 shares of the company's stock worth $492,167,000 after buying an additional 10,270,018 shares in the last quarter. Fred Alger Management LLC raised its holdings in shares of Rocket Companies by 7,412.6% during the third quarter. Fred Alger Management LLC now owns 6,078,800 shares of the company's stock valued at $117,807,000 after acquiring an additional 5,997,885 shares during the last quarter. Finally, Alyeska Investment Group L.P. lifted its position in shares of Rocket Companies by 229.5% in the third quarter. Alyeska Investment Group L.P. now owns 3,274,519 shares of the company's stock valued at $63,460,000 after acquiring an additional 2,280,631 shares in the last quarter. Institutional investors and hedge funds own 4.59% of the company's stock.

Rocket Companies Stock Performance

NYSE:RKT opened at $14.65 on Friday. The company's 50-day moving average price is $15.36 and its 200-day moving average price is $17.73. 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 $41.31 billion, a P/E ratio of -112.70 and a beta of 2.23. Rocket Companies, Inc. has a twelve month low of $11.08 and a twelve month high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.02. The firm had revenue of $2.44 billion for the quarter, compared to the consensus estimate of $2.24 billion. Rocket Companies had a negative net margin of 1.02% and a positive return on equity of 3.04%. The company's revenue for the quarter was up 52.2% on a year-over-year basis. During the same period last year, the firm posted $0.04 earnings per share. On average, sell-side analysts forecast that Rocket Companies, Inc. will post 0.65 earnings per share for the current fiscal year.

Analysts Set New Price Targets

RKT has been the topic of several research reports. Wells Fargo & Company decreased their target price on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. Keefe, Bruyette & Woods upgraded Rocket Companies from a "market perform" rating to an "outperform" rating and raised their target price for the company from $20.00 to $22.00 in a research report on Monday, March 16th. Stephens initiated coverage on Rocket Companies in a research report on Thursday, April 23rd. They issued an "overweight" rating and a $22.50 target price on the stock. Compass Point initiated coverage on Rocket Companies in a research report on Tuesday, March 10th. They issued a "buy" rating and a $21.00 target price on the stock. Finally, Barclays upgraded Rocket Companies from an "equal weight" rating to an "overweight" rating and decreased their target price for the company from $22.00 to $19.00 in a research report on Monday, April 6th. Nine analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $20.40.

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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