Rocket Companies (NYSE:RKT) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded Rocket Companies from “strong sell” to “hold,” while broader analyst sentiment remains mixed with a consensus rating of Hold and a consensus price target of $20.93.
• RKT shares were down 6.6% and opened at $13.82, well below both its 52-week high of $24.36 and the current analyst target range.
• Recent earnings were stronger than expected: Rocket reported $0.15 EPS versus $0.12 expected and $2.82 billion in revenue versus $2.76 billion expected, with revenue jumping 167.1% year over year.

Rocket Companies (NYSE:RKT - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other research firms also recently commented on RKT. Compass Point started coverage on Rocket Companies in a report on Tuesday, March 10th. They set a "buy" rating and a $21.00 price objective for the company. Citizens Jmp initiated coverage on Rocket Companies in a report on Wednesday, March 25th. They set a "market perform" rating for the company. Keefe, Bruyette & Woods decreased their price target on shares of Rocket Companies from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Tuesday. Wells Fargo & Company decreased their price target on shares of Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating for the company in a research report on Thursday, April 9th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Rocket Companies from $24.00 to $16.50 and set a "neutral" rating for the company in a research report on Thursday, April 9th. Nine investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $20.93.

Rocket Companies Trading Down 6.6%

RKT stock opened at $13.82 on Tuesday. The company has a market cap of $38.98 billion, a price-to-earnings ratio of 276.48 and a beta of 2.23. The company has a quick ratio of 70.90, a current ratio of 4.37 and a debt-to-equity ratio of 1.13. The business has a fifty day simple moving average of $14.95 and a 200-day simple moving average of $17.63. Rocket Companies has a 52 week low of $12.03 and a 52 week high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.15 EPS for the quarter, topping analysts' consensus estimates of $0.12 by $0.03. The business had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.76 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The business's revenue for the quarter was up 167.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.04 EPS. On average, equities research analysts expect that Rocket Companies will post 0.63 EPS for the current year.

Hedge Funds Weigh In On Rocket Companies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brooktree Capital Management lifted its position in shares of Rocket Companies by 27.5% during the third quarter. Brooktree Capital Management now owns 148,653 shares of the company's stock worth $2,881,000 after purchasing an additional 32,088 shares during the last quarter. Cibc World Market Inc. bought a new position in shares of Rocket Companies during the third quarter worth about $2,689,000. Udine Wealth Management Inc. lifted its position in shares of Rocket Companies by 86.1% during the third quarter. Udine Wealth Management Inc. now owns 168,070 shares of the company's stock worth $3,257,000 after purchasing an additional 77,736 shares during the last quarter. Thames Capital Management LLC lifted its position in shares of Rocket Companies by 54.3% during the third quarter. Thames Capital Management LLC now owns 1,106,003 shares of the company's stock worth $21,434,000 after purchasing an additional 389,101 shares during the last quarter. Finally, Vanguard Group Inc. lifted its position in shares of Rocket Companies by 29.5% during the third quarter. Vanguard Group Inc. now owns 22,945,500 shares of the company's stock worth $444,684,000 after purchasing an additional 5,226,931 shares during the last quarter. 4.59% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Rocket’s Q1 call highlighted “AI-fueled momentum,” reinforcing the company’s push to use technology to improve growth, efficiency, and the customer experience. Rocket Companies Q1 Call Showcases AI-Fueled Momentum
• Positive Sentiment: In the company’s Q1 update, Rocket reported adjusted EPS of 15 cents versus 12 cents expected and revenue of $2.94 billion versus $2.78 billion expected, signaling stronger-than-expected operating performance. Is Rocket (RKT) the Best Affordable Stock to Buy According to Wall Street Analysts?
• Positive Sentiment: Redfin data showed U.S. home prices rose at the fastest pace in more than a year, which could support mortgage origination activity and Rocket’s housing-related businesses. Redfin Reports Home Prices Posted the Biggest Increase in Over a Year in April
• Positive Sentiment: Rocket Mortgage’s VA-loan awareness campaign highlights a large pool of eligible borrowers who may not be using a no-down-payment product, suggesting a potential growth opportunity. Only Half of Service Members Are Aware VA Loans Require No Down Payment
• Neutral Sentiment: Management also announced CEO Varun Krishna will speak at JPMorgan’s technology, media, and communications conference next week, a visibility event that could provide more detail on strategy but is not an immediate earnings catalyst. Rocket Companies CEO Varun Krishna to Present at JP Morgan Global Technology, Media, and Communications Conference
• Neutral Sentiment: Rocket disclosed a brief quarterly filing delay via Form 12b-25, which usually indicates an administrative issue rather than a major fundamental problem. Rocket Companies Explains Brief Quarterly Filing Delay
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target on RKT to $21 from $22, which may weigh on sentiment even though the firm kept an outperform rating. Rocket Companies NYSE: RKT Price Target Lowered to $21.00 at Keefe, Bruyette & Woods
• Negative Sentiment: Additional coverage from analysts and sector-watch lists suggests the stock is still being evaluated alongside other fintech names, but not all of that attention is clearly bullish. Fintech Stocks To Keep An Eye On - May 11th

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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