Rocket Companies (NYSE:RKT) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Rocket Companies was downgraded by Zacks Research from a "hold" to a "strong sell" rating, indicating a pessimistic outlook for the stock.
• Despite the downgrade, several other analysts have issued more favorable ratings and raised target prices, with Bank of America upgrading the stock from "neutral" to "buy" and increasing the target price from $21.00 to $24.00.
• The current consensus rating for Rocket Companies among analysts is "Hold," with an average target price of $16.65, showcasing a mix of sentiments in the market.

Rocket Companies (NYSE:RKT - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research firms have also issued reports on RKT. Morgan Stanley upped their target price on shares of Rocket Companies from $16.00 to $18.00 and gave the company an "equal weight" rating in a report on Monday. Bank of America upgraded shares of Rocket Companies from a "neutral" rating to a "buy" rating and upped their target price for the company from $21.00 to $24.00 in a report on Wednesday, September 10th. Barclays upped their target price on shares of Rocket Companies from $14.00 to $16.00 and gave the company an "equal weight" rating in a report on Friday, August 1st. BTIG Research upgraded shares of Rocket Companies to a "strong-buy" rating in a report on Tuesday, August 19th. Finally, Jefferies Financial Group upped their target price on shares of Rocket Companies from $11.50 to $14.00 and gave the company a "hold" rating in a report on Tuesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $16.65.

Rocket Companies Trading Down 3.8%

Shares of RKT stock opened at $19.38 on Monday. The company has a market capitalization of $40.79 billion, a price-to-earnings ratio of -387.60 and a beta of 2.30. The company has a current ratio of 18.74, a quick ratio of 18.74 and a debt-to-equity ratio of 2.36. The firm has a 50-day moving average price of $18.45 and a 200 day moving average price of $15.07. Rocket Companies has a twelve month low of $10.06 and a twelve month high of $22.56.

Rocket Companies (NYSE:RKT - Get Free Report) last released its 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. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.28 billion. Rocket Companies had a negative net margin of 0.01% and a positive return on equity of 3.18%. The firm's quarterly revenue was up 4.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.06 EPS. Rocket Companies has set its Q3 2025 guidance at EPS. Research analysts forecast that Rocket Companies will post 0.15 earnings per share for the current fiscal year.

Institutional Trading of Rocket Companies

Institutional investors and hedge funds have recently bought and sold shares of the business. North Capital Inc. increased its position in Rocket Companies by 287.2% during the 2nd quarter. North Capital Inc. now owns 1,820 shares of the company's stock worth $26,000 after purchasing an additional 1,350 shares in the last quarter. SouthState Corp increased its position in Rocket Companies by 2,044.8% during the 2nd quarter. SouthState Corp now owns 2,059 shares of the company's stock worth $29,000 after purchasing an additional 1,963 shares in the last quarter. Mather Group LLC. increased its position in Rocket Companies by 312.2% during the 1st quarter. Mather Group LLC. now owns 2,601 shares of the company's stock worth $31,000 after purchasing an additional 1,970 shares in the last quarter. Parallel Advisors LLC increased its position in Rocket Companies by 302.2% during the 1st quarter. Parallel Advisors LLC now owns 2,956 shares of the company's stock worth $36,000 after purchasing an additional 2,221 shares in the last quarter. Finally, Brooklyn Investment Group increased its position in Rocket Companies by 251.3% during the 1st quarter. Brooklyn Investment Group now owns 3,390 shares of the company's stock worth $41,000 after purchasing an additional 2,425 shares in the last quarter. Institutional investors and hedge funds own 4.59% of the company's stock.

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.

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