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

Rocket Companies, Inc. (NYSE:RKT) saw some unusual options trading activity on Thursday. Traders bought 81,651 call options on the company. This represents an increase of 38% compared to the average volume of 59,141 call options.

Rocket Companies News Summary

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

• Positive Sentiment: Options traders bought 81,651 RKT call contracts, 38% above the typical daily volume of 59,141. The activity may indicate increased speculative interest or expectations for a rebound. Unusual RKT options trading
• Positive Sentiment: Analysts’ consensus remains “Moderate Buy,” with an average price target of $19.57, well above recent trading levels. Morgan Stanley previously upgraded the stock to overweight, although other firms have maintained neutral ratings or reduced targets. Rocket Companies analyst ratings
• Neutral Sentiment: Redfin, which is powered by Rocket, reported that U.S. pending home sales fell 3.5% week over week to their lowest level in nearly three years. Fewer transactions could pressure mortgage originations, but buyers who remain active have more inventory and negotiating power. Redfin pending home sales report
• Negative Sentiment: CEO Jesse Bray sold 225,000 shares worth approximately $2.95 million, reducing his direct ownership by 2.75%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which makes it less informative about current management views but can still weigh on sentiment. Rocket Companies CEO stock sale filing
• Negative Sentiment: A recent investment article titled “3 Reasons to Sell RKT and 1 Stock to Buy Instead” adds to the bearish narrative surrounding the shares, which remain below their 50-day and 200-day moving averages. Reasons to sell RKT article

Insider Transactions at Rocket Companies

In related news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $13.11, for a total value of $2,949,750.00. Following the transaction, the insider owned 7,953,027 shares in the company, valued at $104,264,183.97. The trade was a 2.75% decrease in their position. The sale was disclosed in a legal 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 owned by company insiders.

Institutional Trading of Rocket Companies

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Nuveen LLC raised its position in shares of Rocket Companies by 5.5% in the 4th quarter. Nuveen LLC now owns 32,538,137 shares of the company’s stock valued at $629,938,000 after purchasing an additional 1,706,659 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Rocket Companies by 265.0% during 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 in the last quarter. Fred Alger Management LLC lifted its position in shares of Rocket Companies by 67.6% in the 4th quarter. Fred Alger Management LLC now owns 10,190,918 shares of the company’s stock worth $197,296,000 after buying an additional 4,112,118 shares during the last quarter. Amundi boosted its stake in Rocket Companies by 152.1% in the first quarter. Amundi now owns 13,725,878 shares of the company’s stock valued at $195,594,000 after acquiring an additional 8,280,463 shares during the period. Finally, Norges Bank bought a new position in Rocket Companies during the 4th quarter worth $144,207,000. 4.59% of the stock is owned by hedge funds and other institutional investors.

Rocket Companies Trading Down 2.9%

Shares of Rocket Companies stock traded down $0.38 during trading hours on Thursday, reaching $12.57. The stock had a trading volume of 34,647,921 shares, compared to its average volume of 28,693,813. Rocket Companies has a 1 year low of $12.17 and a 1 year high of $24.36. The firm has a 50 day simple moving average of $13.87 and a two-hundred day simple moving average of $14.35. The company has a current ratio of 4.85, a quick ratio of 4.85 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $35.61 billion, a price-to-earnings ratio of 89.74, a P/E/G ratio of 3.62 and a beta of 2.20.

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

Analyst Ratings Changes

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

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.