Rocket Companies (NYSE:RKT) Hits New 52-Week Low - Here's What Happened

Key Points

• Rocket Companies shares hit a new 52-week low, falling to $12.15 before closing near $12.34. The stock trades below its 50-day and 200-day moving averages.
• Analysts remain cautiously optimistic, with a consensus “Moderate Buy” rating and an average price target of $19.57, despite several firms recently cutting their targets.
• Recent quarterly results showed adjusted earnings in line with estimates at $0.16 per share, while revenue rose 91.9% year over year to $2.76 billion, slightly below expectations.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report)'s stock price reached a new 52-week low on Monday . The company traded as low as $12.15 and last traded at $12.3390, with a volume of 1757250 shares changing hands. The stock had previously closed at $12.29.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on RKT shares. Stephens dropped their target price on Rocket Companies from $22.50 to $20.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. JPMorgan Chase & Co. decreased their price objective on shares of Rocket Companies from $15.50 to $14.00 and set a "neutral" rating for the company in a research report on Friday, August 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 on the stock in a research note on Friday, August 7th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $16.00 price objective (up from $15.00) on shares of Rocket Companies in a research note on Wednesday, August 12th. Finally, Weiss Ratings lowered shares of Rocket Companies from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, August 21st. Nine equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $19.57.

Rocket Companies Stock Performance

The company has a market cap of $35.18 billion, a price-to-earnings ratio of 88.66, a PEG ratio of 3.38 and a beta of 2.20. The firm's 50 day simple moving average is $13.78 and its 200-day simple moving average is $14.28. The company has a debt-to-equity ratio of 1.16, a quick ratio of 4.85 and a current ratio of 4.85.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.16 EPS for the quarter, meeting analysts' consensus estimates of $0.16. The company 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%. Rocket Companies's quarterly revenue was up 91.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.04 EPS. On average, sell-side analysts predict that Rocket Companies, Inc. will post 0.52 EPS for the current year.

Insider Buying and Selling

In other Rocket Companies news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the business's stock in a transaction on 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 transaction, the insider owned 7,953,027 shares of the company's stock, valued at approximately $104,264,183.97. The trade was a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 57.68% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Integrated Wealth Concepts LLC boosted its holdings in Rocket Companies by 32.8% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 142,805 shares of the company's stock valued at $2,249,000 after purchasing an additional 35,239 shares during the last quarter. Nykredit A S purchased a new stake in shares of Rocket Companies during the 2nd quarter valued at approximately $2,980,000. Greenland Capital Management LP raised its position in shares of Rocket Companies by 84.6% during the 2nd quarter. Greenland Capital Management LP now owns 48,000 shares of the company's stock valued at $756,000 after buying an additional 22,000 shares during the period. Ameritas Advisory Services LLC acquired a new position in Rocket Companies in the second quarter valued at approximately $113,000. Finally, Wedmont Private Capital lifted its holdings in Rocket Companies by 28.4% in the second quarter. Wedmont Private Capital now owns 31,319 shares of the company's stock valued at $451,000 after acquiring an additional 6,930 shares during the last quarter. Institutional investors and hedge funds own 4.59% of the company's stock.

Rocket Companies Company Profile

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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