Stephens Cuts Rocket Companies (NYSE:RKT) Price Target to $20.00

Key Points

• Stephens cut Rocket Companies’ price target from $22.50 to $20.00 but maintained an “overweight” rating, implying approximately 48% upside from the stock’s previous close.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus rating and an average price target of $20.43, though Wells Fargo lowered its target to $15 and other firms remain cautious.
• Rocket’s latest earnings matched estimates at $0.16 per share, while revenue rose 91.9% year over year to $2.76 billion but missed consensus; weaker housing activity and a below-consensus revenue outlook present near-term risks.

Rocket Companies (NYSE:RKT - Get Free Report) had its target price lowered by equities researchers at Stephens from $22.50 to $20.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Stephens' price target indicates a potential upside of 48.35% from the stock's previous close.

A number of other equities research analysts also recently weighed in on RKT. Weiss Ratings raised Rocket Companies from a "sell (d)" rating to a "hold (c)" rating in a research report on Wednesday, May 13th. Wells Fargo & Company reduced their target price on shares of Rocket Companies from $17.00 to $15.00 and set an "equal weight" rating for the company in a report on Friday. Royal Bank Of Canada reissued a "sector perform" rating and set a $20.00 price target on shares of Rocket Companies in a research report on Monday, May 11th. Benchmark began coverage on shares of Rocket Companies in a report on Monday, June 29th. They issued a "buy" rating and a $21.00 price target on the stock. Finally, BTIG Research reaffirmed a "neutral" rating on shares of Rocket Companies in a research report on Tuesday, June 16th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $20.43.

Rocket Companies Stock Up 2.0%

NYSE:RKT traded up $0.26 during trading hours on Friday, reaching $13.48. The company's stock had a trading volume of 18,943,569 shares, compared to its average volume of 29,100,813. The company has a debt-to-equity ratio of 1.13, a quick ratio of 4.37 and a current ratio of 4.37. The company has a market capitalization of $38.15 billion, a P/E ratio of 269.10 and a beta of 2.19. The stock has a 50 day moving average price of $14.02 and a two-hundred day moving average price of $15.48. Rocket Companies has a 12 month low of $12.17 and a 12 month high of $24.36.

Rocket Companies (NYSE:RKT - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.16. The business had revenue of $2.76 billion for the quarter, compared to the consensus estimate of $2.81 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.The business's revenue was up 91.9% compared to the same quarter last year. During the same period last year, the business posted $0.04 EPS. Equities analysts predict that Rocket Companies will post 0.54 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada lifted its position in Rocket Companies by 48.9% during the 1st quarter. Royal Bank of Canada now owns 69,641 shares of the company's stock worth $841,000 after acquiring an additional 22,861 shares during the period. Amundi increased its holdings in shares of Rocket Companies by 3.1% in the first quarter. Amundi now owns 33,416 shares of the company's stock valued at $403,000 after purchasing an additional 997 shares during the period. AQR Capital Management LLC raised its stake in shares of Rocket Companies by 1,086.5% in the first quarter. AQR Capital Management LLC now owns 400,467 shares of the company's stock worth $4,734,000 after purchasing an additional 366,716 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Rocket Companies by 12.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company's stock worth $4,473,000 after purchasing an additional 40,326 shares during the last quarter. Finally, Creative Planning lifted its holdings in shares of Rocket Companies by 17.2% during the second quarter. Creative Planning now owns 18,215 shares of the company's stock worth $258,000 after purchasing an additional 2,679 shares during the period. Institutional investors and hedge funds own 4.59% of the company's stock.

More Rocket Companies News

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

• Positive Sentiment: Rocket reported Q2 adjusted revenue of $2.76 billion and adjusted net income of $441 million. Earnings of $0.16 per share matched estimates and improved substantially from $0.04 a year earlier. The company also cited record mortgage-market share gains and greater efficiency from artificial intelligence. Rocket Companies Announces Second Quarter 2026 Results
• Neutral Sentiment: Revenue increased sharply year over year, but the $2.76 billion figure fell short of the roughly $2.81 billion consensus estimate. The earnings-line performance was therefore encouraging, while the top-line miss limited the positive reaction. RKT Q2 Earnings Match, Revenues Miss Amid Housing Weakness, Stock Dips
• Negative Sentiment: Rocket’s Q3 revenue outlook of $2.5 billion to $2.7 billion is below the approximately $2.9 billion analyst expectation, signaling that near-term mortgage demand may remain challenging.
• Negative Sentiment: Higher mortgage rates are weakening home-purchase activity: Redfin reported that pending home sales fell 3.7% week over week to a five-month low. That environment can weigh on mortgage originations and supports the broader real-estate selloff affecting RKT. Redfin Reports Pending Home Sales Sink to 5-Month Low
• Negative Sentiment: Wells Fargo lowered its price target for Rocket Companies (RKT) from $17 to $15 and maintained an “equal weight” rating. Although the revised target implies upside, the cut reflects more cautious expectations following the revenue miss and softer housing outlook. Wells Fargo Rocket Companies Price Target Update

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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