Truist Financial Corp Acquires 82,873 Shares of Rocket Companies, Inc. $RKT

Key Points

• Truist Financial increased its Rocket Companies stake by 291.9% in the fourth quarter, adding 82,873 shares and bringing its total to 111,265 shares valued at about $2.15 million.
• Rocket Companies shares fell 6.6% to $13.82, leaving the stock well below its 52-week high of $24.36 and under its 200-day moving average.
• The company recently beat first-quarter earnings expectations, posting EPS of $0.15 versus $0.12 expected and revenue of $2.82 billion versus $2.76 billion expected, though analysts still rate the stock a consensus “Hold” with a $20.93 price target.

Truist Financial Corp lifted its stake in shares of Rocket Companies, Inc. (NYSE:RKT - Free Report) by 291.9% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 111,265 shares of the company's stock after purchasing an additional 82,873 shares during the quarter. Truist Financial Corp's holdings in Rocket Companies were worth $2,154,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in shares of Rocket Companies by 280.3% in the 4th 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. ValueAct Holdings L.P. lifted its holdings in shares of Rocket Companies by 67.9% in the 3rd quarter. ValueAct Holdings L.P. now owns 25,395,627 shares of the company's stock worth $492,167,000 after purchasing an additional 10,270,018 shares in the last quarter. Durable Capital Partners LP bought a new position in shares of Rocket Companies in the 3rd quarter worth $213,010,000. Wellington Management Group LLP lifted its holdings in shares of Rocket Companies by 30.6% in the 3rd quarter. Wellington Management Group LLP now owns 6,298,220 shares of the company's stock worth $122,060,000 after purchasing an additional 1,474,040 shares in the last quarter. Finally, Fred Alger Management LLC lifted its position in Rocket Companies by 7,412.6% in the 3rd 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 in the last quarter. Institutional investors own 4.59% of the company's stock.

Rocket Companies Trading Down 6.6%

NYSE RKT opened at $13.82 on Thursday. The stock has a market capitalization of $38.98 billion, a price-to-earnings ratio of 276.48 and a beta of 2.23. Rocket Companies, Inc. has a one year low of $12.03 and a one year high of $24.36. The company has a debt-to-equity ratio of 1.13, a current ratio of 4.37 and a quick ratio of 70.90. The business's fifty day moving average is $14.95 and its 200-day moving average is $17.63.

Rocket Companies (NYSE:RKT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.15 EPS for the quarter, topping analysts' consensus estimates of $0.12 by $0.03. The company had revenue of $2.82 billion for the quarter, compared to analysts' expectations of $2.76 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The business's revenue for the quarter was up 167.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.04 EPS. Equities research analysts predict that Rocket Companies, Inc. will post 0.63 EPS for the current year.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on RKT. Zacks Research cut shares of Rocket Companies from a "hold" rating to a "strong sell" rating in a research report on Monday, April 13th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $20.00 price target on shares of Rocket Companies in a research report on Monday. Keefe, Bruyette & Woods dropped their price target on shares of Rocket Companies from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Tuesday. Stephens assumed coverage on shares of Rocket Companies in a research report on Thursday, April 23rd. They issued an "overweight" rating and a $22.50 price target on the stock. Finally, Citizens Jmp assumed coverage on Rocket Companies in a research note on Wednesday, March 25th. They set a "market perform" rating on the stock. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Rocket Companies presently has an average rating of "Hold" and a consensus price target of $20.93.

Trending Headlines about Rocket Companies

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

• Positive Sentiment: Rocket’s Q1 call highlighted “AI-fueled momentum,” reinforcing the company’s push to use technology to improve growth, efficiency, and the customer experience. Rocket Companies Q1 Call Showcases AI-Fueled Momentum
• Positive Sentiment: In the company’s Q1 update, Rocket reported adjusted EPS of 15 cents versus 12 cents expected and revenue of $2.94 billion versus $2.78 billion expected, signaling stronger-than-expected operating performance. Is Rocket (RKT) the Best Affordable Stock to Buy According to Wall Street Analysts?
• Positive Sentiment: Redfin data showed U.S. home prices rose at the fastest pace in more than a year, which could support mortgage origination activity and Rocket’s housing-related businesses. Redfin Reports Home Prices Posted the Biggest Increase in Over a Year in April
• Positive Sentiment: Rocket Mortgage’s VA-loan awareness campaign highlights a large pool of eligible borrowers who may not be using a no-down-payment product, suggesting a potential growth opportunity. Only Half of Service Members Are Aware VA Loans Require No Down Payment
• Neutral Sentiment: Management also announced CEO Varun Krishna will speak at JPMorgan’s technology, media, and communications conference next week, a visibility event that could provide more detail on strategy but is not an immediate earnings catalyst. Rocket Companies CEO Varun Krishna to Present at JP Morgan Global Technology, Media, and Communications Conference
• Neutral Sentiment: Rocket disclosed a brief quarterly filing delay via Form 12b-25, which usually indicates an administrative issue rather than a major fundamental problem. Rocket Companies Explains Brief Quarterly Filing Delay
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target on RKT to $21 from $22, which may weigh on sentiment even though the firm kept an outperform rating. Rocket Companies NYSE: RKT Price Target Lowered to $21.00 at Keefe, Bruyette & Woods
• Negative Sentiment: Additional coverage from analysts and sector-watch lists suggests the stock is still being evaluated alongside other fintech names, but not all of that attention is clearly bullish. Fintech Stocks To Keep An Eye On - May 11th

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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