Rocket Companies (NYSE:RKT) Stock Price Down 4.1% - Time to Sell?

Key Points

• Rocket Companies stock fell 4.1% on Monday, trading at $17.78, which is significantly lower than its previous close of $18.53, with trading volume dropping 80% from average levels.
• Analyst ratings for Rocket Companies are mixed, with a consensus rating of "Hold" and a target price of $15.04, while various firms set price targets ranging from $12.00 to $16.00.
• The company reported a 4.5% increase in quarterly revenue year-over-year, totaling $1.36 billion, and beat earnings estimates with an EPS of $0.04.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) shares fell 4.1% during trading on Monday . The company traded as low as $17.88 and last traded at $17.78. 2,459,646 shares were traded during trading, a decline of 80% from the average session volume of 12,407,216 shares. The stock had previously closed at $18.53.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Morgan Stanley began coverage on Rocket Companies in a report on Thursday. They issued an "equal weight" rating and a $16.00 target price on the stock. 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 research note on Wednesday, July 2nd. Wedbush restated a "neutral" rating and set a $12.00 target price (down previously from $13.00) on shares of Rocket Companies in a research report on Friday, May 9th. Barclays increased their price target on shares of Rocket Companies from $14.00 to $16.00 and gave the company an "equal weight" rating in a research report on Friday, August 1st. Finally, UBS Group set a $16.00 price objective on Rocket Companies and gave the stock a "neutral" rating in a research report on Tuesday, August 5th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $15.04.

Rocket Companies Stock Down 3.3%

The company has a debt-to-equity ratio of 2.36, a quick ratio of 18.74 and a current ratio of 18.74. The stock's fifty day simple moving average is $15.02 and its two-hundred day simple moving average is $13.74. The company has a market capitalization of $37.72 billion, a price-to-earnings ratio of -358.70 and a beta of 2.28.

Rocket Companies (NYSE:RKT - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.04 EPS for the quarter, beating 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 firm had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the previous year, the company posted $0.06 earnings per share. The business's quarterly revenue was up 4.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Rocket Companies, Inc. will post 0.15 EPS for the current year.

Institutional Investors Weigh In On Rocket Companies

Several institutional investors and hedge funds have recently modified their holdings of the business. North Capital Inc. lifted its stake in shares of Rocket Companies by 287.2% in 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 boosted its holdings in Rocket Companies by 2,044.8% during the second quarter. SouthState Corp now owns 2,059 shares of the company's stock valued at $29,000 after acquiring an additional 1,963 shares during the period. Mather Group LLC. grew its position in shares of 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 during the last quarter. Parallel Advisors LLC grew its position in shares of 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 during the last quarter. Finally, Brooklyn Investment Group increased its stake in shares of Rocket Companies by 251.3% in the first quarter. Brooklyn Investment Group now owns 3,390 shares of the company's stock worth $41,000 after purchasing an additional 2,425 shares during the period. Institutional investors and hedge funds 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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