Rocket Companies, Inc. (NYSE:RKT) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts have an average rating of "Hold" on Rocket Companies from 19 firms (2 sell, 8 hold, 9 buy) with a mean 1‑year price target of $20.40; recent notes are mixed — Stephens started coverage at "overweight" ($22.50) while Wells Fargo and JPMorgan cut targets to $17.00 and $16.50 and Zacks moved to "strong sell".
• The stock trades around $14.69 (50/200‑day averages $15.23/$17.71) with a market cap of $41.4B and a negative P/E (-113); Rocket recently beat quarterly EPS and revenue estimates (revenue +52% YoY) but still shows a negative net margin and modest ROE, and analysts forecast about $0.65 EPS for the year.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) has been given an average rating of "Hold" by the nineteen research firms that are covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, eight have given a hold rating and nine have issued a buy rating on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $20.40.

Several equities analysts have recently commented on RKT shares. Stephens started coverage on Rocket Companies in a research note on Thursday, April 23rd. They issued an "overweight" rating and a $22.50 price target on the stock. Wells Fargo & Company decreased their price target on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 9th. Zacks Research lowered Rocket Companies from a "hold" rating to a "strong sell" rating in a research note on Monday, April 13th. Citizens Jmp started coverage on Rocket Companies in a research note on Wednesday, March 25th. They issued a "market perform" rating on the stock. Finally, JPMorgan Chase & Co. decreased their price target on Rocket Companies from $24.00 to $16.50 and set a "neutral" rating on the stock in a research note on Thursday, April 9th.

Rocket Companies Stock Performance

NYSE RKT opened at $14.69 on Thursday. The stock's fifty day moving average is $15.23 and its two-hundred day moving average is $17.71. The firm has a market capitalization of $41.43 billion, a P/E ratio of -113.02 and a beta of 2.23. The company has a debt-to-equity ratio of 1.07, a quick ratio of 70.90 and a current ratio of 70.90. Rocket Companies has a fifty-two week low of $11.08 and a fifty-two week high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.02. The company had revenue of $2.44 billion for the quarter, compared to analyst estimates of $2.24 billion. Rocket Companies had a positive return on equity of 3.04% and a negative net margin of 1.02%.The firm's revenue for the quarter was up 52.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.04 earnings per share. On average, research analysts anticipate that Rocket Companies will post 0.65 earnings per share for the current year.

Hedge Funds Weigh In On Rocket Companies

Large investors have recently modified their holdings of the business. Royal Bank of Canada raised its holdings in shares of Rocket Companies by 48.9% in the 1st quarter. Royal Bank of Canada now owns 69,641 shares of the company's stock valued at $841,000 after buying an additional 22,861 shares during the period. Amundi raised its holdings in shares of Rocket Companies by 3.1% in the 1st quarter. Amundi now owns 33,416 shares of the company's stock valued at $403,000 after buying an additional 997 shares during the period. AQR Capital Management LLC raised its holdings in shares of Rocket Companies by 1,086.5% in the 1st quarter. AQR Capital Management LLC now owns 400,467 shares of the company's stock valued at $4,734,000 after buying an additional 366,716 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Rocket Companies by 12.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company's stock valued at $4,473,000 after buying an additional 40,326 shares during the period. Finally, Creative Planning raised its holdings in shares of Rocket Companies by 17.2% in the 2nd quarter. Creative Planning now owns 18,215 shares of the company's stock valued at $258,000 after buying an additional 2,679 shares during the period. Institutional investors and hedge funds own 4.59% of the company's stock.

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company's core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.

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