Rocket Companies (NYSE:RKT) Trading 6.6% Higher – Here’s Why

Rocket Companies, Inc. (NYSE:RKT) traded up 6.6% during trading on Tuesday . The stock traded as high as $13.25 and last traded at $13.1650. 4,981,014 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 27,801,709 shares. The stock had previously closed at $12.35.

Key Stories Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Rocket’s Redfin-powered housing data suggests some parts of the market are improving, with closed home sales rising to the highest level since 2022 and buyer-friendly conditions persisting in several major markets, which could support future transaction volume and mortgage activity. Rising Rates Stall Housing Market Momentum Just After Closed Home Sales Hit Highest Level Since 2022
• Neutral Sentiment: Rocket Companies announced a private offering of $600 million in senior notes due 2031 and $600 million due 2034, a move that could strengthen liquidity or refinance obligations, but also adds leverage and interest expense. Rocket Companies Announces Offering of Senior Notes due 2031 and Senior Notes due 2034
• Neutral Sentiment: Commentary on Rocket’s broader fintech strategy highlights its Redfin and Mr. Cooper deals, but investors remain cautious because earnings visibility is still tied to mortgage rates and housing demand. RKT Falls Sharply in a Week: What’s Keeping Investors on the Sidelines?
• Negative Sentiment: RKT remains pressured by higher mortgage rates, weak home sales, and muted refinancing activity, which are clouding the outlook for Rocket’s core mortgage business and helping explain the recent slide in the shares. Rocket Companies (RKT) Is Down 12.8% After Housing Jitters Clash With Its Expanding Fintech Ambitions – Has The Bull Case Changed?

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on RKT. Compass Point initiated coverage on shares of Rocket Companies in a research report on Tuesday, March 10th. They set a “buy” rating and a $21.00 price objective on the stock. Royal Bank Of Canada restated a “sector perform” rating and set a $20.00 price target on shares of Rocket Companies in a research note on Monday, May 11th. Citizens Jmp began coverage on shares of Rocket Companies in a report on Wednesday, March 25th. They set a “market perform” rating on the stock. Wells Fargo & Company reduced their price objective on shares of Rocket Companies from $19.00 to $17.00 and set an “equal weight” rating for the company in a research note on Thursday, April 9th. Finally, Zacks Research upgraded shares of Rocket Companies from a “strong sell” rating to a “hold” rating in a report on Tuesday, May 12th. Nine equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $20.93.

Rocket Companies Stock Up 6.2%

The company has a quick ratio of 4.37, a current ratio of 4.37 and a debt-to-equity ratio of 1.13. The business has a 50-day simple moving average of $14.50 and a 200-day simple moving average of $17.20. The stock has a market cap of $37.11 billion, a P/E ratio of 262.54 and a beta of 2.19.

Rocket Companies (NYSE:RKT) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.15 EPS for the quarter, beating analysts’ consensus estimates of $0.12 by $0.03. Rocket Companies had a net margin of 2.78% and a return on equity of 4.30%. The company had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.76 billion. During the same quarter last year, the firm posted $0.04 earnings per share. The company’s quarterly revenue was up 167.1% compared to the same quarter last year. Analysts expect that Rocket Companies, Inc. will post 0.65 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RKT. Truvestments Capital LLC bought a new stake in Rocket Companies during the fourth quarter valued at about $26,000. Acumen Wealth Advisors LLC bought a new position in shares of Rocket Companies in the fourth quarter worth about $26,000. Pinnacle Bancorp Inc. increased its stake in shares of Rocket Companies by 369.7% in the fourth quarter. Pinnacle Bancorp Inc. now owns 1,503 shares of the company’s stock worth $29,000 after purchasing an additional 1,183 shares during the period. City State Bank acquired a new position in shares of Rocket Companies during the 4th quarter worth about $30,000. Finally, Smithfield Trust Co acquired a new position in shares of Rocket Companies during the 4th quarter worth about $32,000. Institutional investors and hedge funds own 4.59% of the company’s stock.

Rocket Companies Company Profile

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.