Rocket Companies (NYSE:RKT) Trading Up 7% - Should You Buy?

Key Points

• Rocket Companies shares rose 7% to about $15.04, with roughly 17.7 million shares traded—below the stock’s average volume.
• Analyst sentiment is mixed but leans positive: ten analysts rate the stock a Buy and nine rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $19.87.
• Recent quarterly results showed adjusted earnings of $0.16 per share, in line with estimates, while revenue reached $2.76 billion and increased 91.9% year over year, slightly below expectations.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report)'s share price traded up 7% on Thursday . The company traded as high as $15.08 and last traded at $15.0350. Approximately 17,680,802 shares traded hands during mid-day trading, a decline of 40% from the average session volume of 29,239,139 shares. The stock had previously closed at $14.05.

Analysts Set New Price Targets

Several research analysts have issued reports on RKT shares. Barclays cut their price objective on Rocket Companies from $19.00 to $17.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. Weiss Ratings restated a "hold (c)" rating on shares of Rocket Companies in a research report on Friday, August 7th. Morgan Stanley raised shares of Rocket Companies from an "equal weight" rating to an "overweight" rating and upped their price target for the stock from $18.00 to $19.00 in a research note on Thursday, July 16th. JPMorgan Chase & Co. cut their price target on shares of Rocket Companies from $15.50 to $14.00 and set a "neutral" rating for the company in a report on Friday, August 7th. Finally, BTIG Research reiterated a "neutral" rating on shares of Rocket Companies in a research note on Tuesday, June 16th. Ten research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $19.87.

Rocket Companies Stock Up 7.8%

The company has a debt-to-equity ratio of 1.16, a quick ratio of 4.37 and a current ratio of 4.85. The firm's 50-day moving average is $14.02 and its 200 day moving average is $15.26. The firm has a market capitalization of $42.86 billion, a PE ratio of 108.04 and a beta of 2.19.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share for the quarter, meeting the consensus estimate of $0.16. The firm had revenue of $2.76 billion during the quarter, compared to the consensus estimate of $2.81 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The firm's revenue for the quarter was up 91.9% on a year-over-year basis. During the same period last year, the firm posted $0.04 EPS. As a group, research analysts forecast that Rocket Companies, Inc. will post 0.54 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Rocket Companies

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Truvestments Capital LLC acquired a new position in shares of Rocket Companies in the fourth quarter worth $26,000. Acumen Wealth Advisors LLC purchased a new stake in Rocket Companies during the 4th quarter worth about $26,000. City State Bank acquired a new position in Rocket Companies in the 4th quarter valued at about $30,000. Smithfield Trust Co purchased a new position in Rocket Companies in the 4th quarter valued at about $32,000. Finally, Key Financial Inc acquired a new stake in shares of Rocket Companies during the 4th quarter worth about $32,000. Hedge funds and other institutional investors own 4.59% of the company's stock.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company's core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.

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