Rocket Companies (NYSE:RKT) Share Price Breaks Above 50-Day Moving Average on Analyst Downgrade

Key Points

• Rocket Companies shares rose 7.5% to $12.81 and moved above their 50-day moving average of $12.38 after JPMorgan raised its price target from $12.50 to $13.00, while maintaining a neutral rating.
• Analyst sentiment remains mixed: RBC, Barclays and Keefe, Bruyette & Woods lowered their price targets, although eight analysts rate the stock Buy and seven rate it Hold. MarketBeat reports an overall “Moderate Buy” rating with an average target of $18.75.
• Rocket’s third-quarter adjusted EPS of $0.15 beat estimates, and revenue grew 37.4% year over year to $2.57 billion. However, high mortgage costs, weak housing affordability and recent insider selling remain risks to mortgage-origination growth.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) shares passed above its fifty day moving average during trading on Friday after JPMorgan Chase & Co. raised their price target on the stock from $12.50 to $13.00. The stock has a fifty day moving average of $12.38 and traded as high as $12.85. JPMorgan Chase & Co. currently has a neutral rating on the stock. Rocket Companies shares last traded at $12.81, with a volume of 54,366,624 shares traded.

A number of other research firms have also weighed in on RKT. Wells Fargo & Company set a $13.00 target price on shares of Rocket Companies and gave the stock an "equal weight" rating in a report on Tuesday, October 6th. Keefe, Bruyette & Woods dropped 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 note on Monday, August 10th. Royal Bank Of Canada cut their price target on shares of Rocket Companies from $16.00 to $14.00 and set a "sector perform" rating on the stock in a report on Friday. Barclays cut their price target 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, Weiss Ratings raised shares of Rocket Companies from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. Eight analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $18.75.

Insider Activity at Rocket Companies

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the company'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 sale, the insider directly owned 7,953,027 shares in the company, valued at $104,264,183.97. This represents a 2.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 450,000 shares of company stock valued at $5,687,074 over the last quarter. 57.68% of the stock is owned by insiders.

Key Headlines Impacting Rocket Companies

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

• Positive Sentiment: Q3 earnings beat expectations: Rocket reported adjusted EPS of $0.15, above the $0.14 analyst consensus and more than double the $0.07 reported a year earlier. Adjusted revenue reached $2.57 billion, while total revenue was $3.28 billion. Rocket Companies Announces Third Quarter 2026 Results
• Positive Sentiment: Substantial growth in revenue and profit: Quarterly revenue increased 37.4% year over year. Rocket posted $709 million in GAAP net income and $419 million in adjusted net income, supporting the view that profitability is improving despite elevated mortgage rates. Rocket Companies Q3 earnings surprise to the upside as profitability improves
• Positive Sentiment: Management provided a sizable Q4 revenue outlook: Rocket expects fourth-quarter revenue of $2.10 billion to $2.30 billion, giving investors visibility into continued business activity. Rocket Companies Q4 revenue outlook
• Neutral Sentiment: Revenue of $2.57 billion was slightly below the roughly $2.58 billion consensus estimate, indicating that the earnings beat was driven primarily by profitability rather than stronger-than-expected sales.
• Negative Sentiment: RBC reduced its price target: Royal Bank of Canada cut its target from $16 to $14 and maintained a “sector perform” rating, signaling limited near-term upside and caution about Rocket’s valuation or operating environment. Royal Bank of Canada recommendations
• Negative Sentiment: Housing conditions remain challenging: U.S. home-sale prices declined for the first time in more than three years, while median mortgage payments remain near record levels. High borrowing costs and weak affordability could constrain purchase and mortgage-origination volumes. U.S. Home-Sale Prices Just Fell

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Valeo Financial Advisors LLC boosted its position in shares of Rocket Companies by 4.2% during the 2nd quarter. Valeo Financial Advisors LLC now owns 20,473 shares of the company's stock worth $322,000 after purchasing an additional 823 shares in the last quarter. NewEdge Wealth LLC increased its position in Rocket Companies by 9.5% in the 1st quarter. NewEdge Wealth LLC now owns 14,457 shares of the company's stock valued at $206,000 after buying an additional 1,253 shares in the last quarter. HB Wealth Management LLC increased its position in Rocket Companies by 4.9% in 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 in the last quarter. World Investment Advisors raised its stake in Rocket Companies by 5.5% during the 1st quarter. World Investment Advisors now owns 28,667 shares of the company's stock worth $409,000 after buying an additional 1,489 shares during the period. Finally, North Dakota State Investment Board raised its stake in Rocket Companies by 6.0% during the 3rd quarter. North Dakota State Investment Board now owns 29,669 shares of the company's stock worth $341,000 after buying an additional 1,668 shares during the period. Institutional investors and hedge funds own 4.59% of the company's stock.

Rocket Companies Trading Up 7.5%

The business has a 50 day moving average of $12.38 and a two-hundred day moving average of $14.76. The company has a debt-to-equity ratio of 1.16, a quick ratio of 4.85 and a current ratio of 4.85. The firm has a market capitalization of $36.27 billion, a price-to-earnings ratio of 28.47, a P/E/G ratio of 3.58 and a beta of 2.23.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.01. Rocket Companies had a net margin of 11.14% and a return on equity of 5.39%. The business had revenue of $2.57 billion during the quarter, compared to the consensus estimate of $2.58 billion. During the same quarter last year, the firm posted $0.07 EPS. Rocket Companies's revenue was up 37.4% compared to the same quarter last year. Equities analysts predict that Rocket Companies, Inc. will post 0.47 EPS for the current year.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based financial technology company that operates a portfolio of consumer finance and real estate businesses. Its platform is designed to simplify the homeownership process through digital applications, automated workflows and online customer support.

The company's principal business is Rocket Mortgage, a residential mortgage lender and servicer offering home purchase, refinance and home equity products. Its broader portfolio includes Rocket Homes, a real estate services platform; Rocket Money, a personal finance app that helps consumers manage subscriptions, budgets and bills; Rocket Loans, which provides personal loans; and Rocket Pro, which supports mortgage brokers and other partners.

Rocket Companies traces its history to 1985, when Dan Gilbert founded Rock Financial.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.