Rocket Companies (NYSE:RKT) Trading Down 15.7% – Here’s Why

Rocket Companies, Inc. (NYSE:RKT) fell 15.7% on Friday . The company traded as low as $17.91 and last traded at $17.5140. 5,998,691 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 30,434,291 shares. The stock had previously closed at $20.77.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on RKT shares. Wall Street Zen downgraded Rocket Companies from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. Weiss Ratings restated a “sell (d+)” rating on shares of Rocket Companies in a research report on Monday, December 29th. Zacks Research upgraded shares of Rocket Companies from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 14th. UBS Group set a $17.00 price objective on shares of Rocket Companies and gave the company a “neutral” rating in a report on Friday, October 10th. Finally, Barclays set a $22.00 target price on Rocket Companies and gave the stock an “equal weight” rating in a report on Tuesday, January 6th. Five investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Rocket Companies presently has an average rating of “Hold” and a consensus target price of $20.50.

Rocket Companies Price Performance

The company has a current ratio of 19.68, a quick ratio of 19.68 and a debt-to-equity ratio of 2.16. The company has a market capitalization of $36.52 billion, a PE ratio of 217.06 and a beta of 2.29. The stock’s 50-day moving average is $20.22 and its two-hundred day moving average is $18.49.

Rocket Companies (NYSE:RKT) last issued its quarterly earnings results on Thursday, October 30th. The company reported $0.07 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.07. Rocket Companies had a positive return on equity of 2.83% and a negative net margin of 1.77%.The firm had revenue of $1.78 billion during the quarter, compared to analyst estimates of $1.65 billion. During the same period last year, the company earned $0.08 EPS. Rocket Companies’s quarterly revenue was up 148.1% compared to the same quarter last year. On average, equities analysts predict that Rocket Companies, Inc. will post 0.15 EPS for the current year.

Insiders Place Their Bets

In other Rocket Companies news, Director Matthew Rizik sold 2,500 shares of the company’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $22.99, for a total value of $57,475.00. Following the transaction, the director directly owned 1,038,536 shares in the company, valued at $23,875,942.64. This represents a 0.24% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders have sold 40,000 shares of company stock worth $779,425. Company insiders own 92.64% of the company’s stock.

Hedge Funds Weigh In On Rocket Companies

Institutional investors have recently made changes to their positions in the company. Royal Bank of Canada grew its holdings 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 in the last quarter. Amundi increased its holdings in Rocket Companies by 3.1% during the first quarter. Amundi now owns 33,416 shares of the company’s stock valued at $403,000 after buying an additional 997 shares during the period. AQR Capital Management LLC raised its stake in 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 buying an additional 366,716 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Rocket Companies by 12.2% in the 1st 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 acquiring an additional 40,326 shares in the last quarter. Finally, Public Employees Retirement System of Ohio lifted its position in shares of Rocket Companies by 67.8% during the second quarter. Public Employees Retirement System of Ohio now owns 74,336 shares of the company’s stock valued at $1,054,000 after buying an additional 30,048 shares during the last quarter. Hedge funds and other institutional investors own 4.59% of the company’s stock.

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.