Rocket Companies (NYSE:RKT) Shares Gap Up Following Analyst Upgrade

Key Points

• Rocket Companies shares experienced a gap up following an upgrade by Bank of America from a neutral to a buy rating, opening at $21.39 after a previous close of $20.46.
• The company has a consensus rating of "Hold" with various analysts setting price targets ranging from $16.00 to $24.00, with Bank of America targeting $24.00.
• In the fourth quarter, hedge funds increased their stakes in Rocket Companies, indicating growing institutional interest, with notable increases from firms like Dimensional Fund Advisors and Ameriprise Financial.

Shares of Rocket Companies, Inc. (NYSE:RKT - Get Free Report) gapped up prior to trading on Wednesday after Bank of America upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $20.46, but opened at $21.39. Bank of America now has a $24.00 price target on the stock. Rocket Companies shares last traded at $21.38, with a volume of 8,138,292 shares traded.

Other equities analysts have also issued research reports about the stock. Barclays lifted their price target on shares of Rocket Companies from $14.00 to $16.00 and gave the company an "equal weight" rating in a report on Friday, August 1st. UBS Group set a $16.00 price objective on shares of Rocket Companies and gave the stock a "neutral" rating in a research note on Tuesday, August 5th. Keefe, Bruyette & Woods increased their price objective on shares of Rocket Companies from $14.00 to $15.00 and gave the stock a "market perform" rating in a research note on Tuesday, August 5th. BTIG Research upgraded shares of Rocket Companies to a "strong-buy" rating in a research note on Tuesday, August 19th. Finally, The Goldman Sachs Group increased their price objective on shares of Rocket Companies from $14.00 to $16.00 and gave the company a "neutral" rating in a report on Wednesday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $16.50.

Institutional Trading of Rocket Companies

Hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP grew its stake in Rocket Companies by 7.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 247,778 shares of the company's stock valued at $2,790,000 after purchasing an additional 18,169 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in Rocket Companies by 9.6% in the fourth quarter. The Manufacturers Life Insurance Company now owns 27,825 shares of the company's stock valued at $313,000 after purchasing an additional 2,437 shares in the last quarter. Northern Trust Corp grew its stake in Rocket Companies by 8.1% in the fourth quarter. Northern Trust Corp now owns 618,703 shares of the company's stock valued at $6,967,000 after purchasing an additional 46,291 shares in the last quarter. Ameriprise Financial Inc. grew its stake in Rocket Companies by 29.6% in the fourth quarter. Ameriprise Financial Inc. now owns 20,598 shares of the company's stock valued at $232,000 after purchasing an additional 4,708 shares in the last quarter. Finally, Cetera Investment Advisers grew its stake in Rocket Companies by 2.9% in the fourth quarter. Cetera Investment Advisers now owns 33,035 shares of the company's stock valued at $372,000 after purchasing an additional 936 shares in the last quarter. Hedge funds and other institutional investors own 4.59% of the company's stock.

Rocket Companies Stock Up 4.5%

The business has a 50 day simple moving average of $16.58 and a 200 day simple moving average of $14.41. The company has a debt-to-equity ratio of 2.36, a current ratio of 18.74 and a quick ratio of 18.74. The stock has a market cap of $45.01 billion, a PE ratio of -427.70 and a beta of 2.30.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same period last year, the company earned $0.06 earnings per share. The business's revenue was up 4.5% compared to the same quarter last year. Rocket Companies has set its Q3 2025 guidance at EPS. On average, equities research analysts forecast that Rocket Companies, Inc. will post 0.15 EPS for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.