Rocket Companies (NYSE:RKT) Raised to Strong-Buy at Stephens

Key Points

• Stephens upgraded Rocket Companies (RKT) to a "strong‑buy" in a report released Thursday.
• Analysts remain mixed overall — MarketBeat shows an average rating of "Hold" with an average price target of $20.40 (1 Strong Buy, 8 Buy, 8 Hold, 2 Sell).
• RKT recently beat quarterly estimates (EPS $0.11 vs. $0.09) and reported revenue up 52.2% year‑over‑year to $2.44B; the stock trades around $15.62 with a 1‑year range of $11.08–$24.36.

Rocket Companies (NYSE:RKT - Get Free Report) was upgraded by investment analysts at Stephens to a "strong-buy" rating in a report released on Thursday,Zacks.com reports.

RKT has been the subject of several other reports. Keefe, Bruyette & Woods raised Rocket Companies from a "market perform" rating to an "outperform" rating and boosted their price objective for the stock from $20.00 to $22.00 in a report on Monday, March 16th. Zacks Research cut Rocket Companies from a "hold" rating to a "strong sell" rating in a report on Monday, April 13th. Compass Point initiated coverage on Rocket Companies in a research note on Tuesday, March 10th. They issued a "buy" rating and a $21.00 price target for the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Rocket Companies in a research note on Monday, December 29th. Finally, Citizens Jmp initiated coverage on Rocket Companies in a research note on Wednesday, March 25th. They issued a "market perform" rating for the company. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $20.40.

Rocket Companies Stock Performance

Shares of NYSE:RKT opened at $15.62 on Thursday. The stock has a market capitalization of $44.04 billion, a P/E ratio of -120.14 and a beta of 2.34. Rocket Companies has a 1-year low of $11.08 and a 1-year high of $24.36. The company has a current ratio of 70.90, a quick ratio of 70.90 and a debt-to-equity ratio of 1.07. The business has a 50-day moving average price of $15.64 and a two-hundred day moving average price of $17.77.

Rocket Companies (NYSE:RKT - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.02. The firm had revenue of $2.44 billion during the quarter, compared to analysts' expectations of $2.24 billion. Rocket Companies had a positive return on equity of 3.04% and a negative net margin of 1.02%.The company's quarterly revenue was up 52.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.04 EPS. Equities analysts predict that Rocket Companies will post 0.66 earnings per share for the current year.

Institutional Trading of Rocket Companies

A number of institutional investors and hedge funds have recently modified their holdings of RKT. Vanguard Group Inc. increased its stake in shares of Rocket Companies by 280.3% in the 4th quarter. Vanguard Group Inc. now owns 87,256,540 shares of the company's stock valued at $1,689,287,000 after acquiring an additional 64,311,040 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in Rocket Companies by 11,636.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 26,189,869 shares of the company's stock worth $507,037,000 after purchasing an additional 25,966,725 shares in the last quarter. Morgan Stanley increased its stake in Rocket Companies by 461.2% during the 4th quarter. Morgan Stanley now owns 27,009,279 shares of the company's stock worth $522,900,000 after purchasing an additional 22,196,782 shares in the last quarter. State Street Corp increased its stake in Rocket Companies by 323.9% during the 4th quarter. State Street Corp now owns 20,688,336 shares of the company's stock worth $400,526,000 after purchasing an additional 15,807,776 shares in the last quarter. Finally, ValueAct Holdings L.P. increased its stake in Rocket Companies by 55.1% during the 4th quarter. ValueAct Holdings L.P. now owns 39,380,652 shares of the company's stock worth $762,409,000 after purchasing an additional 13,985,025 shares in the last quarter. 4.59% of the stock is owned by institutional investors.

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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