Rocket Companies (NYSE:RKT) Shares Gap Up Following Earnings Beat

Key Points

• Rocket Companies shares gapped up to $15.92 after reporting better than expected quarterly earnings of $0.04 EPS and revenue of $1.36 billion, surpassing analyst estimates.
• Equities analysts have adjusted their price targets for Rocket Companies, with Barclays and Goldman Sachs both increasing their targets to $16.00.
• Institutional investors have significantly increased their stakes in Rocket Companies, with Mather Group LLC growing its position by 312.2% recently.

Shares of Rocket Companies, Inc. (NYSE:RKT - Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $14.77, but opened at $15.92. Rocket Companies shares last traded at $16.76, with a volume of 17,226,747 shares.

The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.01. The firm had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.28 billion. Rocket Companies had a return on equity of 3.61% and a net margin of 0.06%. The business's revenue was up 4.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.06 earnings per share.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on RKT shares. Jefferies Financial Group lifted their price target on Rocket Companies from $11.50 to $14.00 and gave the company a "hold" rating in a research report on Tuesday, July 22nd. Keefe, Bruyette & Woods lifted their price target on Rocket Companies from $13.00 to $14.00 and gave the company a "market perform" rating in a research report on Thursday, July 10th. Barclays lifted their price target on Rocket Companies from $14.00 to $16.00 and gave the company an "equal weight" rating in a research report on Friday. The Goldman Sachs Group lifted their price target on Rocket Companies from $14.00 to $16.00 and gave the company a "neutral" rating in a research report on Wednesday, July 2nd. Finally, Wedbush reiterated a "neutral" rating and issued a $12.00 price target (down from $13.00) on shares of Rocket Companies in a research report on Friday, May 9th. Two analysts have rated the stock with a sell rating, ten have given a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $14.58.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Mather Group LLC. grew its stake in shares of Rocket Companies by 312.2% in the 1st quarter. Mather Group LLC. now owns 2,601 shares of the company's stock worth $31,000 after buying an additional 1,970 shares during the last quarter. Parallel Advisors LLC grew its stake in shares of Rocket Companies by 302.2% in the 1st quarter. Parallel Advisors LLC now owns 2,956 shares of the company's stock worth $36,000 after buying an additional 2,221 shares during the last quarter. Brooklyn Investment Group grew its stake in shares of Rocket Companies by 251.3% in the 1st quarter. Brooklyn Investment Group now owns 3,390 shares of the company's stock worth $41,000 after buying an additional 2,425 shares during the last quarter. Itau Unibanco Holding S.A. purchased a new stake in shares of Rocket Companies in the 4th quarter worth approximately $47,000. Finally, GAMMA Investing LLC grew its stake in shares of Rocket Companies by 82.4% in the 1st quarter. GAMMA Investing LLC now owns 3,905 shares of the company's stock worth $47,000 after buying an additional 1,764 shares during the last quarter. Hedge funds and other institutional investors own 4.59% of the company's stock.

Rocket Companies Price Performance

The company has a current ratio of 12.62, a quick ratio of 12.62 and a debt-to-equity ratio of 1.37. The company has a market cap of $33.58 billion, a PE ratio of -558.67 and a beta of 2.28. The firm has a 50 day moving average of $13.90 and a two-hundred day moving average of $13.28.

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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