Rocket Companies (NYSE:RKT) Stock Crosses Below 200 Day Moving Average - Here's What Happened

Key Points

• Rocket Companies shares fell below their 200-day moving average of $14.48, reaching $14.18 before last trading at $14.422.
• The latest quarter’s EPS of $0.15 narrowly beat the $0.14 consensus, while revenue of $2.57 billion came in just below estimates; revenue rose 37.4% year over year.
• Analysts maintain a Moderate Buy consensus and an average price target of $18.75. The article also reports that insiders sold 675,000 shares over the past 90 days.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) shares crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $14.48 and traded as low as $14.18. Rocket Companies shares last traded at $14.4220, with a volume of 31,920,836 shares changing hands.

Analyst Upgrades and Downgrades

RKT has been the subject of several research analyst reports. Barclays decreased their target price on Rocket Companies from $17.00 to $15.00 and set an "overweight" rating for the company in a research report on Monday, October 5th. Keefe, Bruyette & Woods cut their price target 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. 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. Wells Fargo & Company set a $13.00 price target on shares of Rocket Companies and gave the stock an "equal weight" rating in a research note on Tuesday, October 6th. Finally, Royal Bank Of Canada decreased their price objective on shares of Rocket Companies from $16.00 to $14.00 and set a "sector perform" rating for the company in a report on Friday, October 30th. Eight research 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, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.75.

Rocket Companies Trading Down 5.1%

The company has a current ratio of 3.77, a quick ratio of 3.77 and a debt-to-equity ratio of 1.02. The stock has a 50-day simple moving average of $12.46 and a two-hundred day simple moving average of $14.48. The firm has a market capitalization of $40.93 billion, a P/E ratio of 32.05, a price-to-earnings-growth ratio of 4.59 and a beta of 2.27.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported $0.15 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 5.33%. The business had revenue of $2.57 billion during the quarter, compared to analyst estimates of $2.58 billion. During the same quarter in the previous year, the business posted $0.07 EPS. The company's quarterly revenue was up 37.4% compared to the same quarter last year. On average, equities research analysts anticipate that Rocket Companies, Inc. will post 0.47 earnings per share for the current year.

Insider Transactions at Rocket Companies

In related news, CEO Jesse Bray sold 225,000 shares of the business's stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $13.75, for a total value of $3,093,750.00. Following the completion of the transaction, the chief executive officer owned 7,503,027 shares of the company's stock, valued at $103,166,621.25. The trade was a 2.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 675,000 shares of company stock worth $8,780,824 over the last 90 days. Company insiders own 57.68% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Amundi boosted its position in Rocket Companies by 152.1% during the first quarter. Amundi now owns 13,725,878 shares of the company's stock valued at $195,594,000 after purchasing an additional 8,280,463 shares in the last quarter. Andra AP fonden raised its holdings in Rocket Companies by 48.0% in the first quarter. Andra AP fonden now owns 729,357 shares of the company's stock worth $10,393,000 after purchasing an additional 236,632 shares in the last quarter. Swiss National Bank raised its holdings in Rocket Companies by 7.2% in the first quarter. Swiss National Bank now owns 2,696,000 shares of the company's stock worth $38,418,000 after purchasing an additional 180,500 shares in the last quarter. Maple Rock Capital Partners Inc. raised its holdings in Rocket Companies by 76.9% in the second quarter. Maple Rock Capital Partners Inc. now owns 5,543,600 shares of the company's stock worth $87,312,000 after purchasing an additional 2,410,400 shares in the last quarter. Finally, Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in shares of Rocket Companies during the second quarter valued at about $67,795,000. 4.59% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Companies Company Profile

Rocket Companies is a Detroit-based financial technology company whose businesses help consumers navigate homeownership and personal finance. Its services include mortgage lending and refinancing, online real estate search, title and closing services, and personal loans. Its flagship business, Rocket Mortgage, offers a digital mortgage application and lending process. Other brands include Rocket Homes, which connects homebuyers with real estate services, and Amrock, which provides title, settlement, and valuation services.

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