Rocket Companies (NYSE:RKT) Hits New 1-Year Low Following Analyst Downgrade

Key Points

• Rocket Companies fell to a new 52-week low of $10.78 after JPMorgan cut its price target from $14.00 to $12.50 while maintaining a neutral rating.
• Analyst sentiment remains mixed but leans positive: eight analysts rate the stock Buy and eight rate it Hold, producing a “Moderate Buy” consensus and an average target price of $19.12.
• Rocket Mortgage CEO Jesse Bray sold 225,000 shares for approximately $2.95 million under a pre-arranged trading plan; insiders own 57.68% of the company, while institutional investors and hedge funds own 4.59%.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) reached a new 52-week low on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $14.00 to $12.50. JPMorgan Chase & Co. currently has a neutral rating on the stock. Rocket Companies traded as low as $10.78 and last traded at $10.8120, with a volume of 39,511,599 shares changing hands. The stock had previously closed at $11.48.

Several other research analysts have also commented on RKT. Benchmark lowered their price objective on shares of Rocket Companies from $21.00 to $19.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Stephens cut their target price on shares of Rocket Companies from $22.50 to $20.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Weiss Ratings raised shares of Rocket Companies from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday. Barclays reduced their target price on shares of Rocket Companies from $17.00 to $15.00 and set an "overweight" rating on the stock in a report on Monday, October 5th. Finally, Keefe, Bruyette & Woods decreased their price target on shares of Rocket Companies from $20.00 to $19.00 and set an "outperform" rating for the company in a research report on Monday, August 10th. Eight investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $19.12.

Insider Buying and Selling

In other Rocket Companies news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the company's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $13.11, for a total transaction of $2,949,750.00. Following the sale, the insider owned 7,953,027 shares in the company, valued at $104,264,183.97. This represents a 2.75% decrease in their position. The sale 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. Over the last ninety days, insiders sold 450,000 shares of company stock worth $5,687,074. Insiders own 57.68% of the company's stock.

Hedge Funds Weigh In On Rocket Companies

Institutional investors and hedge funds have recently made changes to their positions in the stock. Red Door Wealth Management LLC increased its position 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 buying an additional 698 shares during the period. Valeo Financial Advisors LLC grew its position in shares of 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 last quarter. NewEdge Wealth LLC grew its position in shares of Rocket Companies by 9.5% during the first quarter. NewEdge Wealth LLC now owns 14,457 shares of the company's stock worth $206,000 after acquiring an additional 1,253 shares during the last quarter. HB Wealth Management LLC grew its position in shares of Rocket Companies by 4.9% during the second quarter. HB Wealth Management LLC now owns 27,040 shares of the company's stock worth $426,000 after acquiring an additional 1,258 shares during the last quarter. Finally, World Investment Advisors increased its holdings in shares of Rocket Companies by 5.5% in the 1st quarter. World Investment Advisors now owns 28,667 shares of the company's stock valued at $409,000 after acquiring an additional 1,489 shares during the period. 4.59% of the stock is owned by institutional investors and hedge funds.

Rocket Companies Stock Down 5.8%

The business's fifty day moving average price is $13.15 and its 200 day moving average price is $13.92. The firm has a market capitalization of $30.62 billion, a price-to-earnings ratio of 77.23, a PEG ratio of 3.24 and a beta of 2.23. 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 earnings results on Thursday, August 6th. The company reported $0.16 earnings per share for the quarter, hitting the consensus estimate of $0.16. The business had revenue of $2.76 billion during the quarter, compared to the consensus estimate of $2.81 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The business's quarterly revenue was up 91.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.04 earnings per share. On average, equities analysts expect that Rocket Companies, Inc. will post 0.51 EPS for the current year.

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based fintech platform that provides digital financial and real estate services primarily to consumers in the United States. Its operations are centered on helping customers obtain, manage and refinance home loans, while also offering related services across the homeownership and personal finance lifecycle.

The company's principal businesses include Rocket Mortgage, a digital mortgage lender and originator; Rocket Homes, a real estate marketplace and agent-referral platform; Rocket Money, a personal finance application that helps users manage subscriptions, budgets and bills; and Rocket Loans, which provides personal loans.

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