Rocket Companies (NYSE:RKT) Reaches New 12-Month Low - Here's Why

Key Points

• Rocket Companies shares fell to a new 52-week low of $10.99, last trading near $11.26 and below both its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and a $19.29 price target; however, several firms recently reduced their targets.
• The company matched quarterly EPS expectations at $0.16 and posted 91.9% year-over-year revenue growth, though revenue of $2.76 billion came in below estimates.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) shares hit a new 52-week low during trading on Wednesday. The company traded as low as $10.99 and last traded at $11.2570, with a volume of 2976685 shares trading hands. The stock had previously closed at $11.59.

Analyst Ratings Changes

Several equities research analysts recently issued reports on RKT shares. Stephens cut their target price on shares of Rocket Companies from $22.50 to $20.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. Morgan Stanley upgraded Rocket Companies from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $18.00 to $19.00 in a research note on Thursday, July 16th. JPMorgan Chase & Co. decreased their target price on Rocket Companies from $15.50 to $14.00 and set a "neutral" rating on the stock in a report on Friday, August 7th. Weiss Ratings cut Rocket Companies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, August 21st. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $16.00 price objective (up from $15.00) on shares of Rocket Companies in a research 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. According to data from MarketBeat.com, Rocket Companies has an average rating of "Moderate Buy" and a consensus price target of $19.29.

Rocket Companies Stock Performance

The company has a market cap of $32.04 billion, a P/E ratio of 81.03, a price-to-earnings-growth ratio of 3.21 and a beta of 2.23. The company has a quick ratio of 4.85, a current ratio of 4.85 and a debt-to-equity ratio of 1.16. The stock has a 50 day moving average price of $13.32 and a two-hundred day moving average price of $14.00.

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

Insider Buying and Selling

In other Rocket Companies news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of Rocket Companies stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $13.11, for a total value of $2,949,750.00. Following the completion of the sale, the insider owned 7,953,027 shares in the company, valued at $104,264,183.97. The trade was a 2.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 450,000 shares of company stock worth $5,687,074 over the last 90 days. 57.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Rocket Companies

Hedge funds and other institutional investors have recently made changes to their positions in the business. Nuveen LLC increased its stake in Rocket Companies by 5.5% during the 4th quarter. Nuveen LLC now owns 32,538,137 shares of the company's stock worth $629,938,000 after acquiring an additional 1,706,659 shares during the period. Fred Alger Management LLC grew its holdings in shares of Rocket Companies by 67.6% during the 4th quarter. Fred Alger Management LLC now owns 10,190,918 shares of the company's stock worth $197,296,000 after purchasing an additional 4,112,118 shares in the last quarter. Amundi increased its position in shares of Rocket Companies by 152.1% in the first quarter. Amundi now owns 13,725,878 shares of the company's stock worth $195,594,000 after purchasing an additional 8,280,463 shares during the period. Wellington Management Group LLP increased its position in shares of Rocket Companies by 64.5% in the second quarter. Wellington Management Group LLP now owns 9,029,295 shares of the company's stock worth $142,211,000 after purchasing an additional 3,541,916 shares during the period. Finally, Wolf Hill Capital Management LP raised its stake in Rocket Companies by 186.8% in the fourth quarter. Wolf Hill Capital Management LP now owns 7,221,758 shares of the company's stock valued at $139,813,000 after purchasing an additional 4,703,760 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

About Rocket Companies

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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