Rocket Companies (NYSE:RKT) Shares Gap Up - Still a Buy?

Key Points

• Rocket Companies shares opened higher, rising from a prior close of $11.97 to $12.66 before trading at approximately $12.26, with more than 6.3 million shares changing hands.
• Analyst sentiment remains positive but mixed: nine analysts rate the stock a Buy and nine rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $19.57.
• Rocket matched quarterly earnings expectations at $0.16 per share, while revenue increased 91.9% year over year to $2.76 billion; however, CEO Jesse Bray sold 225,000 shares under a pre-arranged trading plan.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report)'s stock price gapped up before the market opened on Friday. The stock had previously closed at $11.97, but opened at $12.66. Rocket Companies shares last traded at $12.2580, with a volume of 6,300,095 shares.

Wall Street Analyst Weigh In

RKT has been the topic of a number of recent research reports. Barclays lowered their price objective on shares of Rocket Companies from $19.00 to $17.00 and set an "overweight" rating on the stock in a report on Tuesday, July 7th. Morgan Stanley upgraded shares of Rocket Companies from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $18.00 to $19.00 in a research note on Thursday, July 16th. Benchmark reduced their price objective on shares of Rocket Companies from $21.00 to $19.00 and set a "buy" rating for the company in a research note on Friday, August 7th. JPMorgan Chase & Co. lowered their target price on Rocket Companies from $15.50 to $14.00 and set a "neutral" rating on the stock in a research report on Friday, August 7th. Finally, Stephens reduced their price target on Rocket Companies from $22.50 to $20.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Nine equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $19.57.

Rocket Companies Stock Performance

The stock has a market capitalization of $33.49 billion, a P/E ratio of 84.90, a PEG ratio of 3.16 and a beta of 2.23. 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 stock's 50-day simple moving average is $13.43 and its 200 day simple moving average is $14.06.

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 for the quarter, meeting the consensus estimate of $0.16. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The firm had revenue of $2.76 billion for the quarter, compared to analysts' expectations of $2.81 billion. During the same period in the prior year, the firm earned $0.04 EPS. The business's revenue was up 91.9% on a year-over-year basis. Research analysts expect that Rocket Companies, Inc. will post 0.52 EPS for the current fiscal year.

Insiders Place Their Bets

In related 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 value of $2,949,750.00. Following the completion of the sale, the insider directly 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 transaction was disclosed in a document filed with the SEC, which is available 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 Investors Weigh In On Rocket Companies

Institutional investors have recently modified their holdings of the business. Envestnet Portfolio Solutions Inc. bought a new position in Rocket Companies during the second quarter worth about $164,000. Integrated Wealth Concepts LLC increased its holdings in shares of Rocket Companies by 32.8% during the second quarter. Integrated Wealth Concepts LLC now owns 142,805 shares of the company's stock worth $2,249,000 after purchasing an additional 35,239 shares during the period. Nykredit A S acquired a new stake in shares of Rocket Companies in the second quarter valued at approximately $2,980,000. Greenland Capital Management LP grew its position in Rocket Companies by 84.6% during the second quarter. Greenland Capital Management LP now owns 48,000 shares of the company's stock worth $756,000 after buying an additional 22,000 shares in the last quarter. Finally, Ameritas Advisory Services LLC bought a new position in Rocket Companies during the 2nd quarter worth $113,000. Institutional investors own 4.59% of the company's stock.

Rocket Companies Company Profile

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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