Morgan Stanley Reaffirms "Equal Weight" Rating for Rocket Companies (NYSE:RKT)

Key Points

• Morgan Stanley has initiated coverage on Rocket Companies (NYSE:RKT) with an equal weight rating and a price target of $16.00, indicating a potential downside of 15.59% from its previous close.
• Rocket Companies has received mixed ratings from various analysts, with prices targets ranging from $12.00 to $16.00 and an average rating of "Hold."
• Despite a recent 3.4% decline in stock price, Rocket Companies reported a positive quarterly earnings result, with an EPS of $0.04, exceeding analyst expectations.

Rocket Companies (NYSE:RKT - Get Free Report)'s stock had its "equal weight" rating reissued by equities research analysts at Morgan Stanley in a report issued on Thursday, MarketBeat Ratings reports. They currently have a $16.00 price target on the stock. Morgan Stanley's price objective points to a potential downside of 13.84% from the stock's current price.

RKT has been the topic of several other research reports. The Goldman Sachs Group increased their target price on Rocket Companies from $14.00 to $16.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 2nd. UBS Group set a $16.00 target price on Rocket Companies and gave the stock a "neutral" rating in a research report on Tuesday, August 5th. Wedbush restated a "neutral" rating and set a $12.00 target price (down previously from $13.00) on shares of Rocket Companies in a research report on Friday, May 9th. Jefferies Financial Group upped their price target on shares of Rocket Companies from $11.50 to $14.00 and gave the stock a "hold" rating in a report on Tuesday, July 22nd. Finally, Barclays upped their price target on shares of Rocket Companies from $14.00 to $16.00 and gave the stock an "equal weight" rating in a report on Friday, August 1st. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $15.04.

Rocket Companies Stock Down 0.8%

RKT stock traded down $0.15 during mid-day trading on Thursday, reaching $18.57. 11,253,538 shares of the company traded hands, compared to its average volume of 26,278,802. The stock has a market cap of $37.14 billion, a price-to-earnings ratio of -371.40 and a beta of 2.28. The company has a quick ratio of 12.62, a current ratio of 18.74 and a debt-to-equity ratio of 2.36. Rocket Companies has a fifty-two week low of $10.06 and a fifty-two week high of $21.38. The firm's 50 day moving average price is $15.02 and its 200 day moving average price is $13.73.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.03 by $0.01. Rocket Companies had a positive return on equity of 3.18% and a negative net margin of 0.01%. The business had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the previous year, the business earned $0.06 EPS. The company's quarterly revenue was up 4.5% on a year-over-year basis. As a group, equities research analysts predict that Rocket Companies will post 0.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. North Capital Inc. grew its stake in shares of Rocket Companies by 287.2% during the second quarter. North Capital Inc. now owns 1,820 shares of the company's stock valued at $26,000 after buying an additional 1,350 shares during the last quarter. SouthState Corp grew its stake in shares of Rocket Companies by 2,044.8% during the second quarter. SouthState Corp now owns 2,059 shares of the company's stock valued at $29,000 after buying an additional 1,963 shares during the last quarter. Mather Group LLC. grew its stake in shares of Rocket Companies by 312.2% during the first quarter. Mather Group LLC. now owns 2,601 shares of the company's stock valued at $31,000 after buying an additional 1,970 shares during the last quarter. Parallel Advisors LLC grew its stake in shares of Rocket Companies by 302.2% during the first quarter. Parallel Advisors LLC now owns 2,956 shares of the company's stock valued at $36,000 after buying an additional 2,221 shares during the last quarter. Finally, Brooklyn Investment Group grew its stake in shares of Rocket Companies by 251.3% during the first quarter. Brooklyn Investment Group now owns 3,390 shares of the company's stock valued at $41,000 after buying an additional 2,425 shares during the last quarter. 4.59% of the stock is owned by institutional investors.

Rocket Companies Company Profile

Rocket Companies, Inc, a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company's solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business.