Rocket Companies (NYSE:RKT) Price Target Raised to $18.00 at Morgan Stanley

Key Points

• Morgan Stanley has raised its price target for Rocket Companies (NYSE:RKT) from $16.00 to $18.00, maintaining an "equal weight" rating, indicating a potential downside of 8.88% from the previous close.
• Other research firms also revised their ratings, with Bank of America upgrading the stock from "neutral" to "buy" and increasing its target to $24.00.
• The company's recent quarterly reports showed a revenue increase of 4.5% year-over-year, with earnings per share of $0.04, exceeding analyst expectations.

Rocket Companies (NYSE:RKT - Get Free Report) had its price target upped by stock analysts at Morgan Stanley from $16.00 to $18.00 in a report released on Monday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's target price would suggest a potential downside of 8.88% from the company's previous close.

RKT has been the topic of several other research reports. Bank of America upgraded Rocket Companies from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $21.00 to $24.00 in a report on Wednesday, September 10th. UBS Group set a $16.00 price objective on Rocket Companies and gave the stock a "neutral" rating in a report on Tuesday, August 5th. Jefferies Financial Group lifted their price objective on Rocket Companies from $11.50 to $14.00 and gave the stock a "hold" rating in a report on Tuesday, July 22nd. BTIG Research raised Rocket Companies to a "strong-buy" rating in a research note on Tuesday, August 19th. Finally, The Goldman Sachs Group raised their target price on Rocket Companies from $14.00 to $16.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Rocket Companies currently has a consensus rating of "Hold" and an average price target of $16.65.

Rocket Companies Price Performance

NYSE RKT traded up $0.25 during trading hours on Monday, reaching $19.76. 11,917,260 shares of the stock traded hands, compared to its average volume of 14,115,341. The stock has a 50 day simple moving average of $18.28 and a two-hundred day simple moving average of $15.00. Rocket Companies has a 1 year low of $10.06 and a 1 year high of $22.56. The company has a debt-to-equity ratio of 2.36, a current ratio of 18.74 and a quick ratio of 18.74. The company has a market cap of $41.57 billion, a price-to-earnings ratio of -395.28 and a beta of 2.29.

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 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 for the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter last year, the business posted $0.06 earnings per share. The company's revenue for the quarter was up 4.5% on a year-over-year basis. Rocket Companies has set its Q3 2025 guidance at EPS. On average, analysts predict that Rocket Companies will post 0.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Nuveen LLC bought a new position in shares of Rocket Companies in the 1st quarter valued at about $96,470,000. Third Point LLC bought a new position in shares of Rocket Companies in the 2nd quarter valued at about $67,355,000. Broad Bay Capital Management LP bought a new position in shares of Rocket Companies in the 2nd quarter valued at about $51,585,000. Allspring Global Investments Holdings LLC bought a new position in shares of Rocket Companies in the 2nd quarter valued at about $44,102,000. Finally, Maple Rock Capital Partners Inc. bought a new position in shares of Rocket Companies in the 2nd quarter valued at about $32,984,000. Hedge funds and other institutional investors own 4.59% of the company's stock.

About Rocket Companies

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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