Rocket Companies Target of Unusually High Options Trading (NYSE:RKT)

Key Points

• Unusual options activity: Traders purchased 80,083 Rocket Companies call options, about 48% above the typical daily volume of 54,209.
• Stock performance and financials: RKT shares fell 2.7% to $13.86, while the company reported quarterly EPS of $0.16, matching estimates, and revenue of $2.76 billion, up 91.9% year over year but below forecasts.
• Analyst outlook remains moderately positive: The stock has a consensus “Moderate Buy” rating and an average price target of $19.87, despite mixed recent target revisions and only 4.59% institutional ownership.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) was the recipient of some unusual options trading on Friday. Traders purchased 80,083 call options on the company. This is an increase of approximately 48% compared to the typical daily volume of 54,209 call options.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Greenland Capital Management LP increased its position in Rocket Companies by 84.6% during the second quarter. Greenland Capital Management LP now owns 48,000 shares of the company's stock worth $756,000 after purchasing an additional 22,000 shares during the last quarter. Ameritas Advisory Services LLC purchased a new position in Rocket Companies during the second quarter worth approximately $113,000. Wedmont Private Capital boosted its holdings in shares of Rocket Companies by 28.4% in the 2nd quarter. Wedmont Private Capital now owns 31,319 shares of the company's stock valued at $451,000 after purchasing an additional 6,930 shares during the last quarter. HB Wealth Management LLC grew its stake in shares of Rocket Companies by 4.9% during the 2nd quarter. HB Wealth Management LLC now owns 27,040 shares of the company's stock valued at $426,000 after buying an additional 1,258 shares during the period. Finally, Saudi Central Bank grew its stake in shares of Rocket Companies by 85.4% during the 2nd quarter. Saudi Central Bank now owns 62,868 shares of the company's stock valued at $990,000 after buying an additional 28,959 shares during the period. 4.59% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Companies Trading Down 2.7%

Shares of Rocket Companies stock traded down $0.38 during trading hours on Friday, reaching $13.86. 15,926,820 shares of the company's stock were exchanged, compared to its average volume of 28,744,939. Rocket Companies has a 52-week low of $12.17 and a 52-week high of $24.36. The company has a fifty day moving average of $14.25 and a 200-day moving average of $14.82. The company has a current ratio of 4.85, a quick ratio of 4.85 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $39.25 billion, a price-to-earnings ratio of 99.00 and a beta of 2.19.

Rocket Companies (NYSE:RKT - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.16 EPS for the quarter, meeting analysts' consensus estimates of $0.16. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%.The business had revenue of $2.76 billion during the quarter, compared to the consensus estimate of $2.81 billion. During the same quarter in the previous year, the business earned $0.04 earnings per share. The business's revenue for the quarter was up 91.9% on a year-over-year basis. Sell-side analysts forecast that Rocket Companies will post 0.53 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently weighed in on RKT. Royal Bank Of Canada reissued a "sector perform" rating and issued a $16.00 price target (up from $15.00) on shares of Rocket Companies in a report on Wednesday, August 12th. Barclays dropped their price objective on Rocket Companies from $19.00 to $17.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. Weiss Ratings downgraded shares of Rocket Companies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, August 21st. Morgan Stanley upgraded shares of Rocket Companies from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $18.00 to $19.00 in a report on Thursday, July 16th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Rocket Companies from $15.50 to $14.00 and set a "neutral" rating on the stock in a research note on Friday, August 7th. Ten analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $19.87.

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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