Rocket Companies (NYSE:RKT) Shares Gap Up – Time to Buy?

Rocket Companies, Inc. (NYSE:RKT) gapped up prior to trading on Friday . The stock had previously closed at $12.77, but opened at $13.27. Rocket Companies shares last traded at $13.78, with a volume of 4,297,419 shares trading hands.

Analyst Ratings Changes

A number of analysts have issued reports on RKT shares. Barclays upgraded shares of Rocket Companies from an “underweight” rating to an “equal weight” rating and lifted their price target for the company from $10.00 to $14.00 in a report on Tuesday, April 8th. Wedbush reiterated a “neutral” rating and issued a $12.00 price target (down from $13.00) on shares of Rocket Companies in a report on Friday, May 9th. Royal Bank of Canada reiterated a “sector perform” rating and issued a $18.00 price target on shares of Rocket Companies in a report on Tuesday, April 1st. UBS Group reduced their price target on shares of Rocket Companies from $14.00 to $13.00 and set a “neutral” rating on the stock in a report on Wednesday, April 16th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Rocket Companies from a “hold” rating to a “buy” rating and set a $16.00 target price on the stock in a report on Wednesday, April 2nd. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $14.13.

Rocket Companies Stock Performance

The company has a current ratio of 15.47, a quick ratio of 15.47 and a debt-to-equity ratio of 1.51. The business’s 50 day moving average is $13.01 and its 200 day moving average is $12.98. The stock has a market capitalization of $26.36 billion, a PE ratio of -82.53 and a beta of 2.33.

Rocket Companies (NYSE:RKT) last released its quarterly earnings results on Thursday, May 8th. The company reported $0.04 EPS for the quarter, hitting analysts’ consensus estimates of $0.04. Rocket Companies had a negative net margin of 0.38% and a positive return on equity of 2.86%. The firm had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the previous year, the company earned $0.04 EPS. The firm’s revenue for the quarter was down 10.8% compared to the same quarter last year. On average, equities research analysts predict that Rocket Companies, Inc. will post 0.15 earnings per share for the current fiscal year.

Rocket Companies Cuts Dividend

The company also recently declared a dividend, which was paid on Thursday, April 3rd. Investors of record on Thursday, March 20th were paid a dividend of $0.80 per share. The ex-dividend date was Thursday, March 20th. Rocket Companies’s dividend payout ratio is presently -4,273.33%.

Institutional Investors Weigh In On Rocket Companies

Several large investors have recently added to or reduced their stakes in the stock. Boston Partners boosted its position in Rocket Companies by 11.3% in the 1st quarter. Boston Partners now owns 13,704,339 shares of the company’s stock valued at $165,421,000 after buying an additional 1,390,559 shares during the period. Vanguard Group Inc. boosted its position in Rocket Companies by 2.2% in the 1st quarter. Vanguard Group Inc. now owns 12,793,549 shares of the company’s stock valued at $154,418,000 after buying an additional 273,475 shares during the period. JPMorgan Chase & Co. boosted its position in Rocket Companies by 2.2% in the 4th quarter. JPMorgan Chase & Co. now owns 8,161,979 shares of the company’s stock valued at $91,904,000 after buying an additional 174,978 shares during the period. Nuveen Asset Management LLC boosted its position in Rocket Companies by 52.7% in the 4th quarter. Nuveen Asset Management LLC now owns 8,122,148 shares of the company’s stock valued at $91,455,000 after buying an additional 2,804,090 shares during the period. Finally, Nuveen LLC purchased a new stake in Rocket Companies in the 1st quarter valued at about $96,470,000. 4.59% of the stock is owned by hedge funds and other institutional investors.

About Rocket Companies

Rocket Companies, Inc, a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business.