Stock Traders Purchase Large Volume of Rocket Companies Call Options (NYSE:RKT)

Key Points

• Unusual options activity: Investors purchased 81,651 Rocket Companies call options, 38% above the average daily volume, signaling increased speculative interest in the stock.
• Mixed sentiment around the shares: Analysts maintain a “Moderate Buy” consensus with an average $19.57 price target, but RKT traded at $12.57—below its 50-day and 200-day moving averages—and several firms recently lowered their targets.
• Insider sale and housing concerns: Rocket Mortgage CEO Jesse Bray sold 225,000 shares worth about $2.95 million under a pre-arranged Rule 10b5-1 plan, while declining pending home sales could pressure mortgage originations.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) was the recipient of some unusual options trading on Thursday. Stock investors bought 81,651 call options on the stock. This is an increase of 38% compared to the average daily volume of 59,141 call options.

Insider Buying and Selling

In other Rocket Companies news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $13.11, for a total value of $2,949,750.00. Following the completion of the transaction, the insider directly owned 7,953,027 shares in the company, valued at $104,264,183.97. This trade represents a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 57.68% of the company's stock.

Institutional Investors Weigh In On Rocket Companies

Several institutional investors have recently made changes to their positions in the stock. Geode Capital Management LLC lifted its position in shares of Rocket Companies by 265.0% during the 4th quarter. Geode Capital Management LLC now owns 15,539,351 shares of the company's stock valued at $299,939,000 after acquiring an additional 11,282,009 shares during the period. Amundi grew its stake in shares of Rocket Companies by 152.1% during the first quarter. Amundi now owns 13,725,878 shares of the company's stock worth $195,594,000 after buying an additional 8,280,463 shares during the last quarter. Norges Bank bought a new stake in Rocket Companies during the 4th quarter worth $144,207,000. Basswood Capital Management L.L.C. increased its stake in shares of Rocket Companies by 1,881.3% in the fourth quarter. Basswood Capital Management L.L.C. now owns 5,475,110 shares of the company's stock valued at $105,998,000 after buying an additional 5,198,776 shares during the period. Finally, Assenagon Asset Management S.A. bought a new position in shares of Rocket Companies during the second quarter valued at $74,874,000. 4.59% of the stock is currently owned by institutional investors.

Trending Headlines about Rocket Companies

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

• Positive Sentiment: Options traders bought 81,651 RKT call contracts, 38% above the typical daily volume of 59,141. The activity may indicate increased speculative interest or expectations for a rebound. Unusual RKT options trading
• Positive Sentiment: Analysts’ consensus remains “Moderate Buy,” with an average price target of $19.57, well above recent trading levels. Morgan Stanley previously upgraded the stock to overweight, although other firms have maintained neutral ratings or reduced targets. Rocket Companies analyst ratings
• Neutral Sentiment: Redfin, which is powered by Rocket, reported that U.S. pending home sales fell 3.5% week over week to their lowest level in nearly three years. Fewer transactions could pressure mortgage originations, but buyers who remain active have more inventory and negotiating power. Redfin pending home sales report
• Negative Sentiment: CEO Jesse Bray sold 225,000 shares worth approximately $2.95 million, reducing his direct ownership by 2.75%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which makes it less informative about current management views but can still weigh on sentiment. Rocket Companies CEO stock sale filing
• Negative Sentiment: A recent investment article titled “3 Reasons to Sell RKT and 1 Stock to Buy Instead” adds to the bearish narrative surrounding the shares, which remain below their 50-day and 200-day moving averages. Reasons to sell RKT article

Rocket Companies Stock Performance

Rocket Companies stock traded down $0.38 during mid-day trading on Thursday, hitting $12.57. 34,647,921 shares of the company's stock traded hands, compared to its average volume of 28,693,813. The company has a debt-to-equity ratio of 1.16, a current ratio of 4.85 and a quick ratio of 4.85. The firm has a 50 day simple moving average of $13.87 and a two-hundred day simple moving average of $14.35. Rocket Companies has a fifty-two week low of $12.17 and a fifty-two week high of $24.36. The stock has a market cap of $35.61 billion, a price-to-earnings ratio of 89.74, a P/E/G ratio of 3.62 and a beta of 2.20.

Rocket Companies (NYSE:RKT - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.16 earnings per share for the quarter, meeting 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 net margin of 4.70% and a return on equity of 5.13%. The company's revenue was up 91.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.04 earnings per share. On average, research analysts expect that Rocket Companies will post 0.52 EPS for the current fiscal year.

Analyst Ratings Changes

Several research firms recently weighed in on RKT. Barclays decreased their target price on shares of Rocket Companies from $19.00 to $17.00 and set an "overweight" rating for the company in a research note on Tuesday, July 7th. Wells Fargo & Company cut their price target on shares of Rocket Companies from $17.00 to $15.00 and set an "equal weight" rating for the company in a research note on Friday, August 7th. Stephens decreased their price objective on shares of Rocket Companies from $22.50 to $20.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Morgan Stanley upgraded shares of Rocket Companies from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $18.00 to $19.00 in a research note on Thursday, July 16th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $16.00 target price (up from $15.00) on shares of Rocket Companies in a report on Wednesday, August 12th. Nine 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 stock has a consensus rating of "Moderate Buy" and a consensus price target of $19.57.

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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