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

Key Points

• Keefe, Bruyette & Woods lowered Rocket Companies’ price target to $19 from $20 while maintaining an “outperform” rating, implying roughly 38% upside from the prior close.
• Analyst sentiment remains moderately bullish, with 10 Buy ratings and 9 Holds; the consensus price target is $19.80, though several firms recently reduced their targets.
• Rocket reported quarterly earnings of $0.16 per share, matching estimates, while revenue rose 91.9% year over year to $2.76 billion, slightly below expectations.

Rocket Companies (NYSE:RKT - Get Free Report) had its price objective decreased by Keefe, Bruyette & Woods from $20.00 to $19.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' price target points to a potential upside of 37.83% from the stock's previous close.

A number of other equities research analysts have also recently weighed in on the company. Barclays lowered their price target on Rocket Companies from $19.00 to $17.00 and set an "overweight" rating on the stock in a report on Tuesday, July 7th. Benchmark decreased their price objective on Rocket Companies from $21.00 to $19.00 and set a "buy" rating on the stock in a report on Friday. BTIG Research reiterated a "neutral" rating on shares of Rocket Companies in a report on Tuesday, June 16th. Wells Fargo & Company dropped their price objective on shares of Rocket Companies from $17.00 to $15.00 and set an "equal weight" rating for the company in a research report on Friday. Finally, Royal Bank Of Canada dropped their price objective on shares of Rocket Companies from $20.00 to $15.00 and set a "sector perform" rating on the stock in a research note on Friday. Ten equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $19.80.

Rocket Companies Stock Performance

Shares of Rocket Companies stock traded up $0.07 on Monday, hitting $13.79. The stock had a trading volume of 5,020,019 shares, compared to its average volume of 29,111,430. The stock has a market cap of $39.00 billion, a price-to-earnings ratio of 98.63 and a beta of 2.19. The company has a current ratio of 4.85, a quick ratio of 4.37 and a debt-to-equity ratio of 1.16. Rocket Companies has a 52-week low of $12.17 and a 52-week high of $24.36. The company's 50 day moving average price is $14.00 and its 200 day moving average price is $15.42.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.16 EPS for the quarter, hitting the consensus estimate of $0.16. The company had revenue of $2.76 billion for the quarter, compared to analyst estimates of $2.81 billion. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%.The firm's revenue was up 91.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.04 earnings per share. On average, research analysts anticipate that Rocket Companies will post 0.54 EPS for the current year.

Institutional Investors Weigh In On Rocket Companies

A number of hedge funds have recently added to or reduced their stakes in the stock. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Rocket Companies in the 2nd quarter valued at approximately $67,795,000. Handelsbanken Fonder AB grew its position in Rocket Companies by 1.3% in the 2nd quarter. Handelsbanken Fonder AB now owns 203,094 shares of the company's stock valued at $3,199,000 after buying an additional 2,615 shares in the last quarter. Fulton Bank N.A. acquired a new stake in Rocket Companies in the second quarter worth approximately $200,000. Valeo Financial Advisors LLC grew its holdings in Rocket Companies by 4.2% during the second quarter. Valeo Financial Advisors LLC now owns 20,473 shares of the company's stock worth $322,000 after acquiring an additional 823 shares during the period. Finally, MFG Wealth Management Inc. raised its holdings in shares of Rocket Companies by 20.2% in the 2nd quarter. MFG Wealth Management Inc. now owns 234,540 shares of the company's stock worth $3,694,000 after purchasing an additional 39,449 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors.

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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