Rocket Companies (NYSE:RKT) Shares Climb 8.5% Following Analyst Upgrade

Key Points

• Rocket Companies shares jumped 8.5% after JPMorgan raised its price target from $12.50 to $13.00, while maintaining a neutral rating.
• Analyst sentiment is generally positive, with eight Buy ratings and seven Holds; the consensus rating is Moderate Buy with an average price target of $18.75.
• The company exceeded quarterly earnings expectations with $0.15 in adjusted EPS versus $0.14 expected, while revenue rose 37.4% year over year to $2.57 billion.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) was up 8.5% on Monday after JPMorgan Chase & Co. raised their price target on the stock from $12.50 to $13.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Rocket Companies traded as high as $13.86 and last traded at $13.8850. Approximately 11,526,130 shares were traded during trading, a decline of 62% from the average daily volume of 30,263,424 shares. The stock had previously closed at $12.80.

A number of other analysts have also weighed in on RKT. Morgan Stanley set a $16.00 target price on shares of Rocket Companies and gave the stock an "overweight" rating in a research note on Monday, October 12th. Keefe, Bruyette & Woods dropped their price objective on shares of Rocket Companies from $20.00 to $19.00 and set an "outperform" rating on the stock in a research report on Monday, August 10th. Stephens decreased their price target on Rocket Companies from $22.50 to $20.00 and set an "overweight" rating for the company in a report on Friday, August 7th. Weiss Ratings upgraded shares of Rocket Companies from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Finally, Barclays reduced their target price on Rocket Companies from $17.00 to $15.00 and set an "overweight" rating for the company in a report on Monday, October 5th. Eight research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $18.75.

Insider Activity at Rocket Companies

In other news, CEO Jesse Bray sold 92,300 shares of Rocket Companies stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $12.39, for a total value of $1,143,597.00. Following the sale, the chief executive officer owned 7,728,027 shares of the company's stock, valued at $95,750,254.53. The trade was a 1.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 450,000 shares of company stock valued at $5,687,074. 57.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rocket Companies

Large investors have recently modified their holdings of the business. Mirae Asset Global Investments Co. Ltd. acquired a new position in Rocket Companies during the third quarter worth $27,000. Cassaday & Co Wealth Management LLC purchased a new position in shares of Rocket Companies in the 1st quarter valued at about $34,000. Summit Securities Group LLC acquired a new stake in shares of Rocket Companies in the first quarter valued at about $60,000. IFP Advisors Inc acquired a new stake in shares of Rocket Companies in the third quarter valued at about $53,000. Finally, Hilltop National Bank boosted its holdings in Rocket Companies by 44,581.8% during the second quarter. Hilltop National Bank now owns 4,915 shares of the company's stock worth $77,000 after buying an additional 4,904 shares in the last quarter. 4.59% of the stock is owned by hedge funds and other institutional investors.

Rocket Companies Trading Up 8.2%

The company has a quick ratio of 4.85, a current ratio of 3.77 and a debt-to-equity ratio of 1.02. The business's fifty day moving average is $12.38 and its 200 day moving average is $14.76. The stock has a market cap of $39.20 billion, a PE ratio of 30.79, a P/E/G ratio of 3.85 and a beta of 2.26.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $0.15 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.01. The business had revenue of $2.57 billion for the quarter, compared to analysts' expectations of $2.58 billion. Rocket Companies had a return on equity of 5.33% and a net margin of 11.14%. The company's revenue was up 37.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.07 EPS. As a group, analysts predict that Rocket Companies, Inc. will post 0.47 earnings per share 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.