Rocket Companies (NYSE:RKT) CEO Sells 225,000 Shares of Stock

Key Points

• CEO Jesse Bray sold 225,000 Rocket Companies shares at an average price of $13.11, generating approximately $2.95 million. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, leaving him with about 7.95 million shares.
• Rocket’s stock traded at $12.97, near its 52-week low of $12.17 and below its 50-day and 200-day moving averages. The company reported quarterly revenue of $2.76 billion, up 91.9% year over year, while earnings matched estimates at $0.16 per share.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $19.57, although several firms recently lowered their targets. Institutional investors own approximately 4.59% of the company.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) CEO Jesse Bray sold 225,000 shares of the firm's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $13.11, for a total value of $2,949,750.00. Following the sale, the chief executive officer directly owned 7,953,027 shares of the company's stock, valued at $104,264,183.97. This represents a 2.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Rocket Companies Stock Performance

Shares of NYSE:RKT traded down $0.22 on Wednesday, hitting $12.97. The company had a trading volume of 61,794,028 shares, compared to its average volume of 28,678,512. The stock has a market cap of $36.72 billion, a price-to-earnings ratio of 92.63, a P/E/G ratio of 3.69 and a beta of 2.20. The stock has a 50 day moving average price of $13.89 and a 200 day moving average price of $14.38. Rocket Companies, Inc. has a 1-year low of $12.17 and a 1-year high of $24.36. The company has a current ratio of 4.85, a quick ratio of 4.85 and a debt-to-equity ratio of 1.16.

Rocket Companies (NYSE:RKT - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.16 EPS for the quarter, meeting analysts' consensus estimates of $0.16. The business had revenue of $2.76 billion for the quarter, compared to analyst estimates of $2.81 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. Rocket Companies's quarterly revenue was up 91.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.04 EPS. Analysts expect that Rocket Companies, Inc. will post 0.52 EPS for the current year.

Analysts Set New Price Targets

RKT has been the subject of several recent analyst reports. JPMorgan Chase & Co. dropped their price objective on Rocket Companies from $15.50 to $14.00 and set a "neutral" rating for the company in a research report on Friday, August 7th. Barclays decreased their price objective on shares of Rocket Companies from $19.00 to $17.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. Benchmark cut their price target on Rocket Companies from $21.00 to $19.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $16.00 price objective (up from $15.00) on shares of Rocket Companies in a report on Wednesday, August 12th. Finally, Morgan Stanley raised Rocket Companies from an "equal weight" rating to an "overweight" rating and upped their price target for the stock from $18.00 to $19.00 in a research note on Thursday, July 16th. Nine research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, Rocket Companies has a consensus rating of "Moderate Buy" and an average target price of $19.57.

Hedge Funds Weigh In On Rocket Companies

Several large investors have recently bought and sold shares of the stock. Manchester Capital Management LLC grew its position in Rocket Companies by 0.5% in the fourth quarter. Manchester Capital Management LLC now owns 116,466 shares of the company's stock worth $2,255,000 after acquiring an additional 618 shares in the last quarter. Red Door Wealth Management LLC lifted its stake in Rocket Companies by 6.7% during the first quarter. Red Door Wealth Management LLC now owns 11,138 shares of the company's stock worth $159,000 after purchasing an additional 698 shares during the last quarter. Gould Capital LLC boosted its holdings in shares of Rocket Companies by 0.8% in the 4th quarter. Gould Capital LLC now owns 95,166 shares of the company's stock worth $1,842,000 after purchasing an additional 733 shares in the last quarter. IFP Advisors Inc increased its position in shares of Rocket Companies by 9.4% during the 4th quarter. IFP Advisors Inc now owns 8,639 shares of the company's stock valued at $167,000 after purchasing an additional 739 shares during the last quarter. Finally, Valeo Financial Advisors LLC increased its position in shares of Rocket Companies by 4.2% during the 2nd quarter. Valeo Financial Advisors LLC now owns 20,473 shares of the company's stock valued at $322,000 after purchasing an additional 823 shares during the last quarter. 4.59% of the stock is currently owned by institutional investors.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based financial technology company that provides digital platforms and services for homeownership and personal finance. Its flagship business, Rocket Mortgage, originates and services residential mortgage loans through an online application and lending process, serving borrowers across the United States.

The company also operates Rocket Homes, a real estate platform that connects consumers with real estate agents and home-buying resources; Rocket Loans, which provides personal loans; and Rocket Money, a personal finance app designed to help users manage subscriptions, budgeting and other aspects of their financial lives.

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