Rocket Companies, Inc. $RKT Stock Position Cut by Wolf Hill Capital Management LP

Key Points

• Wolf Hill Capital cut its RKT stake by 27.7% in Q3, selling 963,870 shares and ending the quarter with 2,517,998 shares (~$48.8M), which is about 4.5% of Wolf Hill's portfolio and roughly 0.12% of Rocket Companies.
• Other institutions shifted their positions: Vanguard increased its stake 29.5% to 22.95M shares (~$444.7M), while firms including Third Point, Broad Bay, Maple Rock and Atreides established new sizable positions.
• Analyst views are mixed with a consensus rating of "Hold" and a $20.67 price target (6 Buys, 10 Holds, 1 Sell); Rocket beat quarterly EPS ($0.11 vs. $0.09) and revenue ($2.44B vs. $2.24B), but shares trade around $14.55, below recent moving averages and the consensus target.

Wolf Hill Capital Management LP cut its position in Rocket Companies, Inc. (NYSE:RKT - Free Report) by 27.7% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 2,517,998 shares of the company's stock after selling 963,870 shares during the quarter. Rocket Companies makes up approximately 4.5% of Wolf Hill Capital Management LP's investment portfolio, making the stock its 9th largest holding. Wolf Hill Capital Management LP owned about 0.12% of Rocket Companies worth $48,799,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Vanguard Group Inc. raised its stake in shares of Rocket Companies by 29.5% during the 3rd quarter. Vanguard Group Inc. now owns 22,945,500 shares of the company's stock worth $444,684,000 after acquiring an additional 5,226,931 shares in the last quarter. Third Point LLC purchased a new stake in Rocket Companies during the second quarter valued at approximately $67,355,000. Broad Bay Capital Management LP acquired a new stake in Rocket Companies in the second quarter valued at approximately $51,585,000. Maple Rock Capital Partners Inc. acquired a new stake in Rocket Companies in the second quarter valued at approximately $32,984,000. Finally, Atreides Management LP purchased a new position in Rocket Companies in the second quarter worth $24,561,000. 4.59% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently commented on RKT. BTIG Research reiterated a "buy" rating and set a $25.00 price objective on shares of Rocket Companies in a report on Wednesday, November 19th. Jefferies Financial Group initiated coverage on Rocket Companies in a research note on Friday, December 19th. They set a "buy" rating and a $25.00 target price on the stock. Wells Fargo & Company upped their target price on Rocket Companies from $17.00 to $19.00 and gave the company an "equal weight" rating in a research report on Friday, February 27th. JPMorgan Chase & Co. assumed coverage on Rocket Companies in a research note on Monday, January 12th. They issued a "neutral" rating and a $24.00 price target for the company. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Rocket Companies in a report on Monday, December 29th. Six equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Rocket Companies presently has an average rating of "Hold" and a consensus price target of $20.67.

Insiders Place Their Bets

In other news, Director Matthew Rizik sold 2,500 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $22.99, for a total value of $57,475.00. Following the transaction, the director directly owned 1,038,536 shares of the company's stock, valued at approximately $23,875,942.64. This represents a 0.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders sold 22,500 shares of company stock worth $453,775. 92.64% of the stock is currently owned by insiders.

Rocket Companies Stock Performance

Shares of NYSE:RKT traded down $0.03 on Friday, hitting $14.55. 3,606,139 shares of the company were exchanged, compared to its average volume of 32,057,262. Rocket Companies, Inc. has a 1-year low of $10.94 and a 1-year high of $24.36. The stock's 50 day moving average price is $19.34 and its 200 day moving average price is $18.75. 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 firm has a market capitalization of $30.63 billion, a P/E ratio of -112.04 and a beta of 2.30.

Rocket Companies (NYSE:RKT - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.11 earnings per share (EPS) for the quarter, beating 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 positive return on equity of 3.04% and a negative net margin of 1.02%.The firm's revenue was up 52.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.04 EPS. Sell-side analysts predict that Rocket Companies, Inc. will post 0.15 EPS 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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