Rocket Companies (NYSE:RKT) Raised to "Buy" at Bank of America

Key Points

• Bank of America upgraded Rocket Companies from a "neutral" rating to a "buy" rating, with a target price of $24.00, suggesting a potential upside of 17.19% from the previous close.
• The current consensus rating for Rocket Companies among analysts is "Hold," with an average target price of $16.50, despite various firms issuing mixed ratings on the stock.
• In its latest earnings report, Rocket Companies posted $0.04 EPS, beating analysts' expectations, and achieved a revenue of $1.36 billion, reflecting a 4.5% increase compared to the same quarter last year.

Rocket Companies (NYSE:RKT - Get Free Report) was upgraded by equities researchers at Bank of America from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Wednesday, Marketbeat.com reports. The brokerage currently has a $24.00 price target on the stock. Bank of America's price target would indicate a potential upside of 17.19% from the stock's previous close.

A number of other research firms have also recently issued reports on RKT. The Goldman Sachs Group lifted their target price on shares of Rocket Companies from $14.00 to $16.00 and gave the company a "neutral" rating in a research note on Wednesday, July 2nd. Barclays lifted their target price on shares of Rocket Companies from $14.00 to $16.00 and gave the company an "equal weight" rating in a research note on Friday, August 1st. Morgan Stanley initiated coverage on shares of Rocket Companies in a research note on Thursday, August 14th. They issued an "equal weight" rating and a $16.00 target price for the company. Jefferies Financial Group lifted their target price on shares of Rocket Companies from $11.50 to $14.00 and gave the company a "hold" rating in a research note on Tuesday, July 22nd. Finally, BTIG Research upgraded shares of Rocket Companies to a "strong-buy" rating in a research note on Tuesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $16.50.

Rocket Companies Stock Performance

Shares of RKT opened at $20.48 on Wednesday. The company's 50 day moving average price is $16.58 and its 200 day moving average price is $14.41. Rocket Companies has a 52 week low of $10.06 and a 52 week high of $21.38. The company has a market capitalization of $43.10 billion, a PE ratio of -409.60 and a beta of 2.30. The company has a debt-to-equity ratio of 2.36, a quick ratio of 18.74 and a current ratio of 18.74.

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

Hedge Funds Weigh In On Rocket Companies

Large investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp raised its stake in Rocket Companies by 148.3% during the 1st quarter. Bank of New York Mellon Corp now owns 1,163,399 shares of the company's stock valued at $14,042,000 after purchasing an additional 694,779 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Rocket Companies by 8.9% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,266,399 shares of the company's stock valued at $15,285,000 after purchasing an additional 103,156 shares during the last quarter. Kestra Private Wealth Services LLC acquired a new position in Rocket Companies during the 1st quarter valued at $310,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in Rocket Companies during the 1st quarter valued at $281,000. Finally, Wellington Management Group LLP raised its stake in Rocket Companies by 1.5% during the 1st quarter. Wellington Management Group LLP now owns 4,774,324 shares of the company's stock valued at $57,626,000 after purchasing an additional 69,147 shares during the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

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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