Stock Traders Purchase High Volume of Call Options on Rocket Companies (NYSE:RKT)

Key Points

• Rocket Companies, Inc. (NYSE:RKT) experienced a significant increase in call options trading, acquiring 136,476 call options, which is a 26% rise over the average daily volume.
• Research analysts have mixed opinions on Rocket Companies, with a consensus average target price of $17.12 and ratings of "Buy," "Hold," and "Sell" among various firms.
• The company's stock rose 2.8% to hit $16.93 on Tuesday, with a total trading volume significantly exceeding its average.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) saw unusually large options trading on Tuesday. Stock traders acquired 136,476 call options on the company. This is an increase of approximately 26% compared to the average daily volume of 108,160 call options.

Wall Street Analyst Weigh In

RKT has been the subject of several research reports. BTIG Research reiterated a "buy" rating and set a $25.00 price objective on shares of Rocket Companies in a research note on Friday. Barclays set a $19.00 price target on Rocket Companies and gave the company a "cautious" rating in a research report on Monday, October 6th. Zacks Research lowered Rocket Companies from a "hold" rating to a "strong sell" rating in a research report on Monday, September 29th. Morgan Stanley increased their price objective on Rocket Companies from $16.00 to $18.00 and gave the stock an "equal weight" rating in a research report on Monday, September 29th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Rocket Companies in a research report on Wednesday, October 8th. Three research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $17.12.

Rocket Companies Stock Up 2.8%

NYSE:RKT traded up $0.47 during trading hours on Tuesday, hitting $16.93. The company's stock had a trading volume of 21,843,092 shares, compared to its average volume of 16,871,330. The stock has a market capitalization of $35.62 billion, a P/E ratio of -339.70 and a beta of 2.23. The stock has a fifty day moving average of $18.77 and a 200-day moving average of $15.27. The company has a current ratio of 18.74, a quick ratio of 18.74 and a debt-to-equity ratio of 2.36. Rocket Companies has a 52-week low of $10.06 and a 52-week high of $22.56.

Rocket Companies (NYSE:RKT - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.04 EPS for the quarter, topping 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 business had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.28 billion. During the same quarter in the previous year, the firm earned $0.06 earnings per share. The business's revenue was up 4.5% compared to the same quarter last year. Rocket Companies has set its Q3 2025 guidance at EPS. On average, equities analysts forecast that Rocket Companies will post 0.15 earnings per share for the current year.

Hedge Funds Weigh In On Rocket Companies

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Cranbrook Wealth Management LLC grew its holdings in shares of Rocket Companies by 11.6% during the third quarter. Cranbrook Wealth Management LLC now owns 9,644 shares of the company's stock worth $187,000 after buying an additional 1,000 shares during the last quarter. Exchange Traded Concepts LLC lifted its position in shares of Rocket Companies by 1,311.3% during the 3rd quarter. Exchange Traded Concepts LLC now owns 236,369 shares of the company's stock valued at $4,581,000 after acquiring an additional 219,621 shares during the period. Perkins Coie Trust Co acquired a new stake in shares of Rocket Companies during the 3rd quarter valued at approximately $119,000. Whalen Wealth Management Inc. acquired a new stake in shares of Rocket Companies during the 3rd quarter valued at approximately $558,000. Finally, Wedmont Private Capital acquired a new stake in shares of Rocket Companies during the 3rd quarter valued at approximately $424,000. Hedge funds and other institutional investors 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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