Rocket Companies (NYSE:RKT) Reaches New 1-Year Low – What’s Next?

Rocket Companies, Inc. (NYSE:RKT) reached a new 52-week low during trading on Monday. The company traded as low as $11.38 and last traded at $11.4350, with a volume of 11719032 shares traded. The stock had previously closed at $12.17.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on RKT. JPMorgan Chase & Co. lowered their target price on Rocket Companies from $15.50 to $14.00 and set a “neutral” rating for the company in a research note on Friday, August 7th. Morgan Stanley upgraded shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $18.00 to $19.00 in a report on Thursday, July 16th. Keefe, Bruyette & Woods lowered their price objective on shares of Rocket Companies from $20.00 to $19.00 and set an “outperform” rating for the company in a research report on Monday, August 10th. Stephens dropped their price objective on shares of Rocket Companies from $22.50 to $20.00 and set an “overweight” rating on the stock in a report on Friday, August 7th. Finally, Wells Fargo & Company cut their price objective on shares of Rocket Companies from $17.00 to $15.00 and set an “equal weight” rating on the stock in a research report on Friday, August 7th. Nine equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $19.57.

Rocket Companies Trading Down 3.2%

The stock has a market cap of $33.37 billion, a price-to-earnings ratio of 84.37, a P/E/G ratio of 3.34 and a beta of 2.20. The business has a 50-day simple moving average of $13.57 and a two-hundred day simple moving average of $14.15. The company has a debt-to-equity ratio of 1.16, a quick ratio of 4.85 and a current ratio of 4.85.

Rocket Companies (NYSE:RKT) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.16. The company had revenue of $2.76 billion for the quarter, compared to the consensus estimate of $2.81 billion. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The firm’s revenue was up 91.9% compared to the same quarter last year. During the same period last year, the company earned $0.04 earnings per share. As a group, research analysts forecast that Rocket Companies, Inc. will post 0.52 EPS for the current year.

Insider Activity at Rocket Companies

In other news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $13.11, for a total transaction of $2,949,750.00. Following the completion of the transaction, the insider directly owned 7,953,027 shares in the company, valued at $104,264,183.97. This represents a 2.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 57.68% of the stock is currently owned by corporate insiders.

Institutional Trading of Rocket Companies

Institutional investors and hedge funds have recently bought and sold shares of the stock. Nuveen LLC lifted its stake in Rocket Companies by 5.5% in the fourth quarter. Nuveen LLC now owns 32,538,137 shares of the company’s stock valued at $629,938,000 after acquiring an additional 1,706,659 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Rocket Companies by 265.0% in the 4th quarter. Geode Capital Management LLC now owns 15,539,351 shares of the company’s stock valued at $299,939,000 after acquiring an additional 11,282,009 shares during the period. Fred Alger Management LLC increased its stake in shares of Rocket Companies by 67.6% during the 4th quarter. Fred Alger Management LLC now owns 10,190,918 shares of the company’s stock worth $197,296,000 after purchasing an additional 4,112,118 shares during the last quarter. Amundi raised its holdings in shares of Rocket Companies by 152.1% in the 1st quarter. Amundi now owns 13,725,878 shares of the company’s stock valued at $195,594,000 after purchasing an additional 8,280,463 shares during the period. Finally, Norges Bank bought a new stake in shares of Rocket Companies in the 4th quarter valued at about $144,207,000. Institutional investors own 4.59% of the company’s stock.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based financial technology company that provides digital platforms and services for homeownership and personal finance. Its flagship business, Rocket Mortgage, originates and services residential mortgage loans through an online application and lending process, serving borrowers across the United States.

The company also operates Rocket Homes, a real estate platform that connects consumers with real estate agents and home-buying resources; Rocket Loans, which provides personal loans; and Rocket Money, a personal finance app designed to help users manage subscriptions, budgeting and other aspects of their financial lives.