Rocket Companies (NYSE:RKT) Shares Gap Up After Analyst Upgrade

Rocket Companies, Inc. (NYSE:RKT)’s stock price gapped up prior to trading on Wednesday after Bank of America upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $20.46, but opened at $21.39. Bank of America now has a $24.00 price target on the stock, up from their previous price target of $21.00. Rocket Companies shares last traded at $21.38, with a volume of 8,138,292 shares changing hands.

Several other equities research analysts also recently commented on the stock. Barclays boosted their target price on shares of Rocket Companies from $14.00 to $16.00 and gave the company an “equal weight” rating in a research note on Friday, August 1st. Keefe, Bruyette & Woods boosted their target price on shares of Rocket Companies from $14.00 to $15.00 and gave the company a “market perform” rating in a research note on Tuesday, August 5th. UBS Group set a $16.00 target price on shares of Rocket Companies and gave the company a “neutral” rating in a research note on Tuesday, August 5th. The Goldman Sachs Group boosted their target price on shares of Rocket Companies from $14.00 to $16.00 and gave the company a “neutral” rating in a research note on Wednesday, July 2nd. Finally, BTIG Research upgraded shares of Rocket Companies to a “strong-buy” rating in a research note on Tuesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Rocket Companies presently has a consensus rating of “Hold” and a consensus price target of $16.50.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RKT. Dimensional Fund Advisors LP lifted its position in Rocket Companies by 7.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 247,778 shares of the company’s stock valued at $2,790,000 after purchasing an additional 18,169 shares during the period. The Manufacturers Life Insurance Company lifted its position in Rocket Companies by 9.6% during the 4th quarter. The Manufacturers Life Insurance Company now owns 27,825 shares of the company’s stock valued at $313,000 after purchasing an additional 2,437 shares during the period. Northern Trust Corp lifted its position in Rocket Companies by 8.1% during the 4th quarter. Northern Trust Corp now owns 618,703 shares of the company’s stock valued at $6,967,000 after purchasing an additional 46,291 shares during the period. Ameriprise Financial Inc. lifted its position in Rocket Companies by 29.6% during the 4th quarter. Ameriprise Financial Inc. now owns 20,598 shares of the company’s stock valued at $232,000 after purchasing an additional 4,708 shares during the period. Finally, Cetera Investment Advisers lifted its position in Rocket Companies by 2.9% during the 4th quarter. Cetera Investment Advisers now owns 33,035 shares of the company’s stock valued at $372,000 after purchasing an additional 936 shares during the period. 4.59% of the stock is currently owned by institutional investors and hedge funds.

Rocket Companies Trading Up 2.1%

The company has a debt-to-equity ratio of 2.36, a quick ratio of 18.74 and a current ratio of 18.74. The company has a market capitalization of $43.97 billion, a price-to-earnings ratio of -417.86 and a beta of 2.30. The business’s 50-day simple moving average is $16.70 and its 200-day simple moving average is $14.45.

Rocket Companies (NYSE:RKT) last released its earnings results on Thursday, July 31st. The company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.28 billion. Rocket Companies had a negative net margin of 0.01% and a positive return on equity of 3.18%. The company’s revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.06 EPS. Rocket Companies has set its Q3 2025 guidance at EPS. On average, research analysts expect that Rocket Companies, Inc. will post 0.15 earnings per share for the current fiscal year.

Rocket Companies Company Profile

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.