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

Key Points

• Rocket Companies experienced unusually high options trading activity with 135,678 call options purchased on Friday, marking a 74% increase in volume compared to average levels.
• Several large investors, including Momentum Wealth Planning and Reynders McVeigh Capital Management, have established new stakes in Rocket Companies during the second quarter, indicating growing institutional interest.
• Rocket Companies reported a 4.5% increase in quarterly revenue year-over-year, with earnings per share exceeding consensus estimates, although it retains a negative net margin of 0.01%.

Rocket Companies, Inc. (NYSE:RKT - Get Free Report) was the recipient of unusually large options trading activity on Friday. Investors purchased 135,678 call options on the company. This represents an increase of approximately 74% compared to the average volume of 78,122 call options.

Hedge Funds Weigh In On Rocket Companies

Several large investors have recently bought and sold shares of RKT. Momentum Wealth Planning LLC bought a new stake in shares of Rocket Companies in the 2nd quarter worth approximately $927,000. Reynders McVeigh Capital Management LLC purchased a new stake in shares of Rocket Companies in the second quarter worth $9,422,000. Osaic Holdings Inc. lifted its holdings in shares of Rocket Companies by 46.5% during the second quarter. Osaic Holdings Inc. now owns 29,861 shares of the company's stock valued at $423,000 after purchasing an additional 9,475 shares in the last quarter. Marex Group plc bought a new position in shares of Rocket Companies during the second quarter valued at $868,000. Finally, State of Wyoming boosted its position in Rocket Companies by 7.4% in the second quarter. State of Wyoming now owns 28,921 shares of the company's stock worth $410,000 after purchasing an additional 1,995 shares during the last quarter. 4.59% of the stock is currently owned by institutional investors.

Rocket Companies Stock Performance

Shares of NYSE:RKT traded up $0.45 on Friday, hitting $19.50. The company had a trading volume of 21,743,850 shares, compared to its average volume of 14,130,802. Rocket Companies has a 1-year low of $10.06 and a 1-year high of $22.56. The stock has a market cap of $41.04 billion, a price-to-earnings ratio of -390.00 and a beta of 2.30. The stock has a 50 day moving average price of $18.17 and a 200 day moving average price of $14.95. 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 (NYSE:RKT - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.04 EPS for the quarter, beating the consensus estimate of $0.03 by $0.01. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.28 billion. Rocket Companies had a negative net margin of 0.01% and a positive return on equity of 3.18%. Rocket Companies's revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.06 earnings per share. Rocket Companies has set its Q3 2025 guidance at EPS. Analysts expect that Rocket Companies will post 0.15 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. UBS Group set a $16.00 target price on Rocket Companies and gave the stock a "neutral" rating in a report on Tuesday, August 5th. Bank of America upgraded shares of Rocket Companies from a "neutral" rating to a "buy" rating and increased their price target for the stock from $21.00 to $24.00 in a research note on Wednesday, September 10th. BTIG Research raised shares of Rocket Companies to a "strong-buy" rating in a report on Tuesday, August 19th. Barclays lifted their target price on shares of Rocket Companies from $14.00 to $16.00 and gave the company an "equal weight" rating in a research report on Friday, August 1st. Finally, The Goldman Sachs Group raised their price objective on shares of Rocket Companies from $14.00 to $16.00 and gave the company a "neutral" rating in a research report on Wednesday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $16.50.

Rocket Companies Company Profile

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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