Rocket Companies (NYSE:RKT) Shares Down 4.2% - Should You Sell?

Key Points

• Rocket Companies' shares dropped 4.2% to $17.05, with trading volume significantly above average, indicating increased investor activity and concern.
• Analysts' price targets vary, with Barclays setting a target at $19.00 while Goldman Sachs increased their target from $14.00 to $16.00, and the company has an average rating of "Hold" with an average target price of $16.88.
• Hedge funds are actively increasing their stakes in Rocket Companies, with PNC Financial Services Group boosting its holdings by 18.4% recently, reflecting growing institutional interest.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) shares fell 4.2% during mid-day trading on Monday . The company traded as low as $17.03 and last traded at $17.05. 21,513,768 shares were traded during trading, an increase of 34% from the average session volume of 16,038,587 shares. The stock had previously closed at $17.80.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Barclays set a $19.00 price target on Rocket Companies and gave the company a "cautious" rating in a research note on Monday. Jefferies Financial Group raised their target price on Rocket Companies from $11.50 to $14.00 and gave the stock a "hold" rating in a report on Tuesday, July 22nd. The Goldman Sachs Group upped their price objective on Rocket Companies from $14.00 to $16.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 2nd. Keefe, Bruyette & Woods lifted their target price on shares of Rocket Companies from $14.00 to $15.00 and gave the company a "market perform" rating in a report on Tuesday, August 5th. Finally, UBS Group set a $16.00 price target on shares of Rocket Companies and gave the stock a "neutral" rating in a report on Tuesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, Rocket Companies has an average rating of "Hold" and an average target price of $16.88.

Rocket Companies Stock Down 4.8%

The company has a quick ratio of 18.74, a current ratio of 18.74 and a debt-to-equity ratio of 2.36. The company has a market capitalization of $35.65 billion, a PE ratio of -338.80 and a beta of 2.23. The firm has a 50-day moving average of $18.66 and a two-hundred day moving average of $15.15.

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, topping 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 during the quarter, compared to analysts' expectations of $1.28 billion. During the same period in the prior year, the business posted $0.06 EPS. The company's revenue was up 4.5% compared to the same quarter last year. Rocket Companies has set its Q3 2025 guidance at EPS. Equities research analysts predict that Rocket Companies, Inc. will post 0.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Rocket Companies

Hedge funds and other institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. boosted its holdings in shares of Rocket Companies by 18.4% in the 2nd quarter. PNC Financial Services Group Inc. now owns 3,890 shares of the company's stock valued at $55,000 after buying an additional 605 shares in the last quarter. Amundi increased its holdings in shares of Rocket Companies by 2.3% in the 2nd quarter. Amundi now owns 34,170 shares of the company's stock valued at $498,000 after purchasing an additional 754 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Rocket Companies by 23.2% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,339 shares of the company's stock valued at $62,000 after purchasing an additional 816 shares during the period. USS Investment Management Ltd increased its stake in Rocket Companies by 2.7% in the 1st quarter. USS Investment Management Ltd now owns 37,152 shares of the company's stock valued at $448,000 after purchasing an additional 967 shares in the last quarter. Finally, Missouri Trust & Investment Co boosted its position in shares of Rocket Companies by 1.1% in the 2nd quarter. Missouri Trust & Investment Co now owns 94,395 shares of the company's stock worth $1,339,000 after buying an additional 1,000 shares in the last quarter. 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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