Keefe, Bruyette & Woods Issues Pessimistic Forecast for Rocket Companies (NYSE:RKT) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target on Rocket Companies to $21 from $22, while keeping an outperform rating. The new target still implies about 44.9% upside from the stock’s current price.
• Analyst sentiment is mixed overall: several firms have recently adjusted targets and ratings, and MarketBeat data shows a consensus Hold with an average price target of $20.93.
• Rocket Companies reported a strong quarter, with EPS of $0.15 beating estimates and revenue of $2.82 billion topping forecasts, though the stock was trading at $14.50 and remained well below its 52-week high.

Rocket Companies (NYSE:RKT - Get Free Report) had its price target dropped by equities research analysts at Keefe, Bruyette & Woods from $22.00 to $21.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' target price points to a potential upside of 44.85% from the company's current price.

A number of other research firms have also recently weighed in on RKT. Citizens Jmp initiated coverage on Rocket Companies in a report on Wednesday, March 25th. They issued a "market perform" rating on the stock. JPMorgan Chase & Co. decreased their target price on Rocket Companies from $24.00 to $16.50 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Stephens started coverage on Rocket Companies in a report on Thursday, April 23rd. They issued an "overweight" rating and a $22.50 target price on the stock. Wells Fargo & Company dropped their price target on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating for the company in a research report on Thursday, April 9th. Finally, Barclays raised Rocket Companies from an "equal weight" rating to an "overweight" rating and cut their price target for the stock from $22.00 to $19.00 in a research note on Monday, April 6th. Nine investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $20.93.

Rocket Companies Stock Performance

NYSE RKT traded down $0.33 during trading hours on Tuesday, hitting $14.50. 4,475,553 shares of the stock were exchanged, compared to its average volume of 28,538,611. The company has a quick ratio of 70.90, a current ratio of 4.37 and a debt-to-equity ratio of 1.13. The stock has a 50-day moving average of $15.07 and a 200 day moving average of $17.67. The company has a market cap of $40.88 billion, a price-to-earnings ratio of 290.30 and a beta of 2.23. Rocket Companies has a 12-month low of $11.30 and a 12-month 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. Rocket Companies had a net margin of 2.78% and a return on equity of 4.30%. The company had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.76 billion. During the same period in the prior year, the business posted $0.04 earnings per share. The firm's revenue for the quarter was up 167.1% compared to the same quarter last year. As a group, equities research analysts forecast that Rocket Companies will post 0.63 earnings per share for the current year.

Hedge Funds Weigh In On Rocket Companies

Several institutional investors and hedge funds have recently modified their holdings of RKT. Cloud Capital Management LLC purchased a new position in shares of Rocket Companies in the 3rd quarter worth about $25,000. Truvestments Capital LLC acquired a new position in shares of Rocket Companies in the 4th quarter valued at about $26,000. Acumen Wealth Advisors LLC acquired a new position in shares of Rocket Companies in the 4th quarter valued at about $26,000. Pinnacle Bancorp Inc. increased its position in Rocket Companies by 369.7% during the 4th quarter. Pinnacle Bancorp Inc. now owns 1,503 shares of the company's stock worth $29,000 after purchasing an additional 1,183 shares in the last quarter. Finally, City State Bank acquired a new stake in Rocket Companies during the 4th quarter worth approximately $30,000. Hedge funds and other institutional investors own 4.59% of the company's stock.

Trending Headlines about Rocket Companies

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

• Positive Sentiment: Redfin, the real estate brokerage powered by Rocket, reported that U.S. home prices rose 2.4% year over year in April, the biggest increase in more than a year, signaling a healthier housing backdrop that could support mortgage demand. Redfin Reports Home Prices Posted the Biggest Increase in Over a Year in April
• Positive Sentiment: Redfin also said the gap between home sellers and buyers is narrowing, which may indicate buyer demand is stabilizing and the housing market is becoming more balanced. America's Housing Market Favors Buyers—But Their Advantage Is Finally Starting to Shrink
• Positive Sentiment: Rocket Mortgage highlighted a large awareness gap around VA loans, a potentially useful growth opportunity since many eligible service members do not realize these loans require no down payment or PMI. Only Half of Service Members Are Aware VA Loans Require No Down Payment
• Positive Sentiment: RBC reiterated a “sector perform” rating on Rocket Companies and set a $20 price target, implying meaningful upside from the stock’s recent trading range. Rocket Companies Given Sector Perform Rating at Royal Bank Of Canada
• Positive Sentiment: Recent commentary around Rocket’s Q1 results pointed to strong revenue growth, earnings beat, AI adoption, and synergy gains from platform integration, which may be helping sentiment. RKT Q1 Deep Dive: AI Adoption, Synergy Gains, and Platform Integration Drive Outperformance
• Neutral Sentiment: Redfin launched “Sunscore,” a new home-search feature that measures how much sunlight a home gets, adding another product enhancement to Rocket’s broader real estate platform. Sunscore Launches on Redfin to Show Homebuyers How Much Sunlight a Home Gets
• Neutral Sentiment: Redfin survey data showed many consumers value sunlight in home searches, reinforcing product relevance but with limited immediate financial impact. Redfin Survey: U.S. Residents Prioritize Sunlight Over Home Size—and It Affects How Happy They Are at Home
• Negative Sentiment: Rocket disclosed a Form 12b-25, notifying investors of a brief delay in its quarterly filing, which can create uncertainty even if the delay is administrative. Rocket Companies Explains Brief Quarterly Filing Delay

Rocket Companies Company 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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