Rocket Companies Sees Unusually High Options Volume (NYSE:RKT)

Key Points

• Rocket Companies saw unusually heavy options activity on Thursday, with investors buying 93,026 call options, an 84% jump above the average volume. This suggests rising bullish speculation in the stock.
• Morgan Stanley turned more positive on RKT, upgrading the stock to overweight and raising its price target to $19, even as other firms issued mixed but generally cautious ratings. The consensus analyst view remains Moderate Buy, with an average price target of $20.73.
• The stock has been volatile but is trading well below its 52-week high, recently up to $14.88 with strong trading volume, while Rocket’s last earnings beat expectations on both EPS and revenue. The company’s mortgage-focused business remains tied to housing-market conditions.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) was the recipient of some unusual options trading on Thursday. Investors bought 93,026 call options on the company. This is an increase of 84% compared to the average volume of 50,517 call options.

Wall Street Analyst Weigh In

RKT has been the topic of a number of analyst reports. Wells Fargo & Company reduced their price target on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. BTIG Research reissued a "neutral" rating on shares of Rocket Companies in a research report on Tuesday, June 16th. Morgan Stanley upgraded Rocket Companies from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $18.00 to $19.00 in a research report on Thursday. JPMorgan Chase & Co. lowered their target price on Rocket Companies from $16.00 to $15.50 and set a "neutral" rating for the company in a report on Monday. Finally, Weiss Ratings upgraded Rocket Companies from a "sell (d)" rating to a "hold (c)" rating in a report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Rocket Companies currently has an average rating of "Moderate Buy" and a consensus price target of $20.73.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RKT. Truvestments Capital LLC bought a new position in Rocket Companies during the fourth quarter worth about $26,000. Acumen Wealth Advisors LLC bought a new stake in shares of Rocket Companies in the fourth quarter valued at approximately $26,000. Pinnacle Bancorp Inc. lifted its stake in shares of Rocket Companies by 369.7% during the 4th quarter. Pinnacle Bancorp Inc. now owns 1,503 shares of the company's stock valued at $29,000 after buying an additional 1,183 shares in the last quarter. City State Bank bought a new position in Rocket Companies in the 4th quarter worth approximately $30,000. Finally, Smithfield Trust Co bought a new position in Rocket Companies in the 4th quarter worth approximately $32,000. Institutional investors own 4.59% of the company's stock.

Rocket Companies Stock Performance

RKT traded up $0.28 during midday trading on Thursday, reaching $14.88. The company had a trading volume of 44,986,894 shares, compared to its average volume of 31,779,308. Rocket Companies has a 12-month low of $12.17 and a 12-month high of $24.36. The business has a 50-day moving average price of $14.13 and a two-hundred day moving average price of $16.34. The stock has a market cap of $42.10 billion, a PE ratio of 297.62 and a beta of 2.16. The company has a debt-to-equity ratio of 1.13, a quick ratio of 4.37 and a current ratio of 4.37.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.15 EPS for the quarter, topping analysts' consensus estimates of $0.12 by $0.03. Rocket Companies had a net margin of 2.78% and a return on equity of 4.30%. The company had revenue of $2.82 billion for the quarter, compared to analysts' expectations of $2.76 billion. During the same quarter in the previous year, the firm posted $0.04 EPS. Rocket Companies's revenue was up 167.1% on a year-over-year basis. On average, sell-side analysts expect that Rocket Companies will post 0.59 earnings per share for the current fiscal year.

Rocket Companies News Summary

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

• Positive Sentiment: Morgan Stanley upgraded Rocket Companies to a buy-equivalent rating, arguing the stock can still outperform even as mortgage demand weakens. This mortgage stock should rise even as demand for loans falls, Morgan Stanley says
• Positive Sentiment: Morgan Stanley also set a $19 price target, which reinforced the bullish case as Rocket trades near its 52-week low valuation. Rocket Companies Upgraded as Valuation Nears a 52-Week Low
• Positive Sentiment: Traders bought 93,026 call options on Rocket Companies, far above typical volume, signaling rising speculative bullish sentiment.
• Neutral Sentiment: Recent Redfin updates highlight mixed housing conditions, including fewer pending home sales and uneven pricing trends, which may create uncertainty but also underscore Rocket’s exposure to the housing market. What Rocket Companies (RKT)'s Weather-Driven Redfin Integration Means For Shareholders
• Neutral Sentiment: Redfin’s partnership with The Weather Company and related housing-market reports are product and market updates, but they do not appear to be immediate stock-moving fundamentals. Redfin Partners With The Weather Company to Bring Weather Data to Every Home Listing
• Neutral Sentiment: Redfin’s report showing better weather as a relocation driver and college towns outperforming nationwide housing trends provides context on consumer behavior, but the stock impact is indirect. Better Weather Is the Top Reason Americans Are Planning Out-of-State Moves, Outranking Affordability

Rocket Companies Company Profile

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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