Rocket Companies (NYSE:RKT) Given "Sector Perform" Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its "sector perform" rating on Rocket Companies and maintained a $20 price target, implying about 34% upside from the stock’s current price.
• Other analysts remain mixed on the stock: recent calls include buys, neutral/equal-weight ratings, and an overweight upgrade, with MarketBeat showing a consensus rating of Hold and an average price target of $21.
• Rocket Companies reported better-than-expected Q1 results, with earnings of $0.15 per share versus $0.12 expected and revenue of $2.82 billion versus $2.76 billion expected, while revenue jumped 167.1% year over year.

Rocket Companies (NYSE:RKT - Get Free Report)'s stock had its "sector perform" rating restated by research analysts at Royal Bank Of Canada in a report issued on Monday,Benzinga reports. They currently have a $20.00 price target on the stock. Royal Bank Of Canada's price target would suggest a potential upside of 34.00% from the stock's current price.

Other equities analysts also recently issued research reports about the company. Compass Point began coverage on Rocket Companies in a report on Tuesday, March 10th. They set a "buy" rating and a $21.00 target price for the company. Wells Fargo & Company cut their target price 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. JPMorgan Chase & Co. reduced their target price on Rocket Companies from $24.00 to $16.50 and set a "neutral" rating for the company in a report on Thursday, April 9th. Stephens began 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. Finally, Barclays upgraded shares of Rocket Companies from an "equal weight" rating to an "overweight" rating and decreased their price target for the stock from $22.00 to $19.00 in a research report on Monday, April 6th. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $21.00.

Rocket Companies Price Performance

Shares of RKT stock traded down $0.77 during trading hours on Monday, hitting $14.93. 12,335,721 shares of the company's stock were exchanged, compared to its average volume of 28,608,887. The business's 50 day simple moving average is $15.16 and its 200-day simple moving average is $17.70. Rocket Companies has a 12-month low of $11.20 and a 12-month high of $24.36. The company has a market capitalization of $42.09 billion, a PE ratio of 298.66 and a beta of 2.23. The company has a current ratio of 4.37, a quick ratio of 70.90 and a debt-to-equity ratio of 1.13.

Rocket Companies (NYSE:RKT - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.15 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.03. The company had revenue of $2.82 billion during the quarter, compared to analysts' expectations of $2.76 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.Rocket Companies's quarterly revenue was up 167.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.04 EPS. On average, equities research analysts anticipate that Rocket Companies will post 0.63 earnings per share for the current year.

Hedge Funds Weigh In On Rocket Companies

A number of large investors have recently bought and sold shares of the business. Royal Bank of Canada lifted its position in shares of Rocket Companies by 48.9% during the first quarter. Royal Bank of Canada now owns 69,641 shares of the company's stock worth $841,000 after purchasing an additional 22,861 shares during the last quarter. Amundi boosted its position in 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 grew its stake in Rocket Companies by 1,086.5% in the 1st quarter. AQR Capital Management LLC now owns 400,467 shares of the company's stock worth $4,734,000 after acquiring an additional 366,716 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Rocket Companies by 12.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company's stock worth $4,473,000 after acquiring an additional 40,326 shares during the period. Finally, Creative Planning boosted its holdings in shares of Rocket Companies by 17.2% in the second quarter. Creative Planning now owns 18,215 shares of the company's stock valued at $258,000 after purchasing an additional 2,679 shares during the period. Hedge funds and other institutional investors 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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