Rocket Companies Target of Unusually High Options Trading (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) was the recipient of some unusual options trading activity on Friday. Stock traders acquired 172,738 call options on the stock. This represents an increase of approximately 40% compared to the typical volume of 123,513 call options.

Rocket Companies Price Performance

Shares of NYSE RKT traded down $2.80 during mid-day trading on Friday, hitting $17.97. 61,234,220 shares of the stock were exchanged, compared to its average volume of 33,352,246. The company has a market cap of $37.83 billion, a P/E ratio of 225.55 and a beta of 2.29. Rocket Companies has a twelve month low of $10.94 and a twelve month high of $24.36. The stock’s fifty day simple moving average is $20.22 and its two-hundred day simple moving average is $18.49. The company has a debt-to-equity ratio of 2.16, a quick ratio of 19.68 and a current ratio of 19.68.

Rocket Companies (NYSE:RKT) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.07 earnings per share for the quarter, meeting the consensus estimate of $0.07. Rocket Companies had a negative net margin of 1.77% and a positive return on equity of 2.83%. The firm had revenue of $1.78 billion during the quarter, compared to analysts’ expectations of $1.65 billion. During the same quarter last year, the company posted $0.08 EPS. The company’s quarterly revenue was up 148.1% compared to the same quarter last year. As a group, analysts forecast that Rocket Companies will post 0.15 EPS for the current fiscal year.

Analyst Ratings Changes

Several research firms have commented on RKT. The Goldman Sachs Group reissued a “neutral” rating and set a $22.00 target price (up previously from $16.00) on shares of Rocket Companies in a research note on Wednesday, October 29th. BTIG Research reissued a “buy” rating and issued a $25.00 price objective on shares of Rocket Companies in a research note on Wednesday, November 19th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Rocket Companies in a report on Monday, October 13th. JPMorgan Chase & Co. assumed coverage on shares of Rocket Companies in a report on Monday, January 12th. They issued a “neutral” rating and a $24.00 price objective for the company. Finally, Oppenheimer initiated coverage on shares of Rocket Companies in a report on Thursday, November 13th. They set an “outperform” rating and a $25.00 price target for the company. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $20.50.

Insider Activity

In other news, Director Matthew Rizik sold 2,500 shares of Rocket Companies stock in a transaction dated Wednesday, December 24th. The shares were sold at an average price of $19.44, for a total value of $48,600.00. Following the completion of the transaction, the director directly owned 1,066,036 shares of the company’s stock, valued at approximately $20,723,739.84. The trade was a 0.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In the last 90 days, insiders have sold 40,000 shares of company stock valued at $779,425. Company insiders own 92.64% of the company’s stock.

Hedge Funds Weigh In On Rocket Companies

Institutional investors have recently modified their holdings of the stock. Royal Bank of Canada increased its position in shares of Rocket Companies by 48.9% in the 1st quarter. Royal Bank of Canada now owns 69,641 shares of the company’s stock valued at $841,000 after buying an additional 22,861 shares in the last quarter. Amundi grew its stake in 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 acquiring an additional 997 shares during the period. AQR Capital Management LLC increased its holdings 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 acquiring 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% during 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 period. Finally, Public Employees Retirement System of Ohio lifted its holdings in shares of Rocket Companies by 67.8% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 74,336 shares of the company’s stock valued at $1,054,000 after purchasing an additional 30,048 shares in the last quarter. 4.59% of the stock is currently owned by institutional investors and hedge funds.

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.