Rocket Companies (NYSE:RKT) Shares Gap Down - Here's What Happened

Key Points

• Rocket Companies shares gapped down from $19.59 to $18.77 before closing at $18.02, with a trading volume of over 13 million shares.
• Analysts have mixed views on the stock, with one upgrading its price target to $18.00, while Zacks Research downgraded it to a "strong sell" rating, resulting in a consensus rating of "Hold."
• The company reported earnings of $0.04 per share for the last quarter, surpassing analysts' expectations, and had a year-over-year revenue increase of 4.5% to $1.36 billion.

Shares of Rocket Companies, Inc. (NYSE:RKT - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $19.59, but opened at $18.77. Rocket Companies shares last traded at $18.02, with a volume of 13,654,531 shares traded.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on RKT. Keefe, Bruyette & Woods boosted their price target 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. Barclays increased their price objective on shares of Rocket Companies from $14.00 to $16.00 and gave the stock an "equal weight" rating in a research note on Friday, August 1st. Zacks Research downgraded shares of Rocket Companies from a "hold" rating to a "strong sell" rating in a research note on Monday. Jefferies Financial Group increased their price objective on shares of Rocket Companies from $11.50 to $14.00 and gave the stock a "hold" rating in a research note on Tuesday, July 22nd. Finally, Morgan Stanley upped their target price on shares of Rocket Companies from $16.00 to $18.00 and gave the company an "equal weight" rating in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $16.65.

Rocket Companies Price Performance

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 firm has a market capitalization of $38.40 billion, a P/E ratio of -361.98 and a beta of 2.23. The business's 50 day moving average is $18.53 and its 200-day moving average is $15.10.

Rocket Companies (NYSE:RKT - Get Free Report) last issued its 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 negative net margin of 0.01% and a positive return on equity of 3.18%. The firm had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same quarter last year, the business posted $0.06 earnings per share. The company's quarterly revenue was up 4.5% on a year-over-year basis. Rocket Companies has set its Q3 2025 guidance at EPS. As a group, sell-side analysts predict that Rocket Companies, Inc. will post 0.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Rocket Companies

A number of hedge funds have recently modified their holdings of RKT. North Capital Inc. raised its stake in Rocket Companies by 287.2% during the second quarter. North Capital Inc. now owns 1,820 shares of the company's stock worth $26,000 after buying an additional 1,350 shares during the last quarter. SouthState Corp increased its stake in Rocket Companies by 2,044.8% in the second quarter. SouthState Corp now owns 2,059 shares of the company's stock valued at $29,000 after purchasing an additional 1,963 shares in the last quarter. Mather Group LLC. increased its stake in Rocket Companies by 312.2% in the first quarter. Mather Group LLC. now owns 2,601 shares of the company's stock valued at $31,000 after purchasing an additional 1,970 shares in the last quarter. Parallel Advisors LLC increased its stake in Rocket Companies by 302.2% in the first quarter. Parallel Advisors LLC now owns 2,956 shares of the company's stock valued at $36,000 after purchasing an additional 2,221 shares in the last quarter. Finally, Brooklyn Investment Group increased its stake in Rocket Companies by 251.3% in the first quarter. Brooklyn Investment Group now owns 3,390 shares of the company's stock valued at $41,000 after purchasing an additional 2,425 shares in the last quarter. Institutional investors and hedge funds own 4.59% of the company's stock.

Rocket Companies Company Profile

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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