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

Key Points

• Zacks Research downgraded Rocket Companies (RKT) from a "hold" to a "strong sell" in a report released Monday.
• Analyst sentiment is mixed—eight Buys, eight Holds and two Sells—resulting in a consensus rating of Hold with an average price target of $20.25, while the stock opened around $15.41 and trades below its 52‑week high.
• Rocket beat quarterly EPS estimates ($0.11 vs. $0.09) and reported revenue of $2.44 billion, up 52.2% year‑over‑year.

Rocket Companies (NYSE:RKT - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday,Zacks.com reports.

Several other brokerages also recently weighed in on RKT. JPMorgan Chase & Co. cut their target price on shares of Rocket Companies from $24.00 to $16.50 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Barclays raised shares of Rocket Companies from an "equal weight" rating to an "overweight" rating and cut their target price for the company from $22.00 to $19.00 in a research note on Monday, April 6th. Keefe, Bruyette & Woods raised shares of Rocket Companies from a "market perform" rating to an "outperform" rating and boosted their target price for the company from $20.00 to $22.00 in a research note on Monday, March 16th. Citizens Jmp assumed coverage on shares of Rocket Companies in a research note on Wednesday, March 25th. They issued a "market perform" rating for the company. Finally, Compass Point assumed coverage on shares of Rocket Companies in a research note on Tuesday, March 10th. They issued a "buy" rating and a $21.00 target price for the company. Eight equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $20.25.

Rocket Companies Trading Up 0.6%

NYSE:RKT opened at $15.41 on Monday. The company has a market capitalization of $43.45 billion, a PE ratio of -118.54 and a beta of 2.34. The company has a quick ratio of 70.90, a current ratio of 70.90 and a debt-to-equity ratio of 1.07. Rocket Companies has a 52-week low of $11.08 and a 52-week high of $24.36. The stock has a fifty day simple moving average of $16.15 and a 200-day simple moving average of $17.92.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.02. Rocket Companies had a positive return on equity of 3.04% and a negative net margin of 1.02%.The business had revenue of $2.44 billion during the quarter, compared to the consensus estimate of $2.24 billion. During the same quarter in the previous year, the company posted $0.04 EPS. The business's revenue was up 52.2% on a year-over-year basis. On average, equities research analysts expect that Rocket Companies will post 0.15 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Purpose Unlimited Inc. acquired a new position in shares of Rocket Companies during the 4th quarter valued at about $664,000. Hsbc Holdings PLC increased its stake in shares of Rocket Companies by 2,876.6% during the 4th quarter. Hsbc Holdings PLC now owns 1,254,973 shares of the company's stock valued at $24,357,000 after acquiring an additional 1,212,812 shares during the last quarter. Rockefeller Capital Management L.P. increased its stake in shares of Rocket Companies by 336.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 28,181 shares of the company's stock valued at $546,000 after acquiring an additional 21,727 shares during the last quarter. World Investment Advisors acquired a new position in shares of Rocket Companies during the 4th quarter valued at about $526,000. Finally, Corient Private Wealth LLC increased its stake in shares of Rocket Companies by 66.7% during the 4th quarter. Corient Private Wealth LLC now owns 107,493 shares of the company's stock valued at $2,042,000 after acquiring an additional 43,022 shares during the last quarter. Institutional investors and hedge funds own 4.59% of the company's stock.

About Rocket Companies

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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