Rocket Companies (NYSE:RKT) Shares Gap Up on Earnings Beat

Key Points

• Rocket Companies beat earnings expectations: Adjusted earnings were $0.15 per share versus the roughly $0.14 consensus, while revenue reached $2.57 billion and rose 37.4% year over year. Shares gapped up from $11.92 to $12.57 before trading near $12.32.
• Profitability improved substantially, with the company reporting $709 million in GAAP net income and $419 million in adjusted net income. Analysts maintain a “Moderate Buy” consensus and an average price target of $18.88, although several firms recently lowered their targets.
• Risks remain for the mortgage business: Rocket expects fourth-quarter revenue of $2.10 billion to $2.30 billion, below the third quarter, while high mortgage payments and weakening home-sale prices could pressure housing demand and loan originations.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $11.92, but opened at $12.57. Rocket Companies shares last traded at $12.3150, with a volume of 5,951,407 shares traded.

The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.01. The company had revenue of $2.57 billion during the quarter, compared to analysts' expectations of $2.58 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. Rocket Companies's revenue for the quarter was up 37.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.07 earnings per share.

More Rocket Companies News

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

• Positive Sentiment: Q3 earnings beat expectations. Rocket reported adjusted earnings of $0.15 per share, ahead of the $0.13–$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: Profitability improved sharply. Rocket reported $709 million in GAAP net income and $419 million in adjusted net income, supported by revenue growth of approximately 37% from the prior year. Multiple reports characterized the quarter as a positive earnings surprise. Rocket Companies Q3 earnings surprise to the upside as profitability improves
• Positive Sentiment: Analysts continue to see upside potential. A brokerage roundup cited a consensus price target of $18.88, substantially above recent trading levels, although targets are subject to revision following the earnings release. Rocket Companies Stock Has Consensus Price Target of $18.88
• Neutral Sentiment: Fourth-quarter outlook provides a mixed signal. Rocket expects Q4 revenue between $2.10 billion and $2.30 billion, implying a sequential decline from Q3 but offering investors a framework for performance amid rate-related pressure. Rocket Companies Expects Q4 Revenue Range
• Negative Sentiment: Housing-market conditions remain a risk. Redfin reported that U.S. home-sale prices declined for the first time in more than three years, while median mortgage payments remain near record highs. These conditions could discourage prospective buyers and pressure mortgage origination activity. U.S. Home-Sale Prices Just Fell for the First Time in 3 Years

Analysts Set New Price Targets

Several analysts have recently commented on RKT shares. Benchmark lowered their price objective on Rocket Companies from $21.00 to $19.00 and set a "buy" rating for the company in a research note on Friday, August 7th. 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 report on Monday, August 10th. Morgan Stanley set a $16.00 price objective on Rocket Companies and gave the company an "overweight" rating in a research note on Monday, October 12th. JPMorgan Chase & Co. reduced their price target on shares of Rocket Companies from $14.00 to $12.50 and set a "neutral" rating for the company in a research report on Monday, October 12th. 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 data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $18.88.

Insider Activity

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $13.11, for a total transaction of $2,949,750.00. Following the completion of the sale, the insider owned 7,953,027 shares of the company's stock, valued at $104,264,183.97. This trade represents a 2.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 valued at $5,687,074. 57.68% of the stock is owned by insiders.

Institutional Investors Weigh In On Rocket Companies

A number of institutional investors have recently bought and sold shares of the business. Valeo Financial Advisors LLC boosted its position in Rocket Companies by 4.2% during the 2nd quarter. Valeo Financial Advisors LLC now owns 20,473 shares of the company's stock valued at $322,000 after acquiring an additional 823 shares in the last quarter. NewEdge Wealth LLC lifted its position in Rocket Companies by 9.5% during the first quarter. NewEdge Wealth LLC now owns 14,457 shares of the company's stock valued at $206,000 after purchasing an additional 1,253 shares during the period. HB Wealth Management LLC boosted its stake in shares of Rocket Companies by 4.9% in the second quarter. HB Wealth Management LLC now owns 27,040 shares of the company's stock worth $426,000 after buying an additional 1,258 shares during the last quarter. World Investment Advisors increased its holdings in shares of Rocket Companies by 5.5% during the 1st quarter. World Investment Advisors now owns 28,667 shares of the company's stock valued at $409,000 after purchasing an additional 1,489 shares in the last quarter. Finally, North Dakota State Investment Board boosted its stake in shares of 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 acquiring an additional 1,668 shares in the last quarter. Hedge funds and other institutional investors own 4.59% of the company's stock.

Rocket Companies Stock Performance

The company has a debt-to-equity ratio of 1.16, a current ratio of 4.85 and a quick ratio of 4.85. The company has a market capitalization of $35.04 billion, a price-to-earnings ratio of 88.41, a price-to-earnings-growth ratio of 3.46 and a beta of 2.23. The firm has a fifty day simple moving average of $12.40 and a 200 day simple moving average of $14.81.

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.

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