Investors Buy Large Volume of Rocket Companies Call Options (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) saw some unusual options trading on Friday. Investors bought 172,738 call options on the company. This is an increase of 40% compared to the typical volume of 123,513 call options.

Insider Transactions at Rocket Companies

In other Rocket Companies news, Director Matthew Rizik sold 2,500 shares of Rocket Companies stock in a transaction on Monday, January 12th. The shares were sold at an average price of $22.99, for a total value of $57,475.00. Following the completion of the transaction, the director directly owned 1,038,536 shares of the company’s stock, valued at $23,875,942.64. This trade represents a 0.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Insiders have sold a total of 40,000 shares of company stock worth $779,425 over the last quarter. 92.64% of the stock is owned by corporate insiders.

Institutional Trading of Rocket Companies

Several large investors have recently added to or reduced their stakes in RKT. Royal Bank of Canada raised its holdings in shares of Rocket Companies by 48.9% during the 1st quarter. Royal Bank of Canada now owns 69,641 shares of the company’s stock worth $841,000 after acquiring an additional 22,861 shares during the period. Amundi increased its position in Rocket Companies by 3.1% during the first quarter. Amundi now owns 33,416 shares of the company’s stock worth $403,000 after purchasing an additional 997 shares during the last quarter. AQR Capital Management LLC raised its stake in Rocket Companies by 1,086.5% during the first quarter. AQR Capital Management LLC now owns 400,467 shares of the company’s stock worth $4,734,000 after purchasing an additional 366,716 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Rocket Companies by 12.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company’s stock valued at $4,473,000 after purchasing an additional 40,326 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its stake in shares of Rocket Companies by 67.8% in 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 buying an additional 30,048 shares during the period. 4.59% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Companies Trading Down 13.6%

RKT stock opened at $17.94 on Friday. The company has a current ratio of 19.68, a quick ratio of 19.68 and a debt-to-equity ratio of 2.16. Rocket Companies has a 12-month low of $10.94 and a 12-month high of $24.36. The stock has a market cap of $37.76 billion, a price-to-earnings ratio of 224.28 and a beta of 2.29. The business’s 50-day moving average is $20.23 and its 200 day moving average is $18.51.

Rocket Companies (NYSE:RKT) last announced its earnings results on Thursday, October 30th. The company reported $0.07 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.07. The company had revenue of $1.78 billion for the quarter, compared to analysts’ expectations of $1.65 billion. Rocket Companies had a negative net margin of 1.77% and a positive return on equity of 2.83%. The firm’s quarterly revenue was up 148.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.08 EPS. On average, sell-side analysts anticipate that Rocket Companies will post 0.15 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. UBS Group set a $17.00 target price on shares of Rocket Companies and gave the stock a “neutral” rating in a report on Friday, October 10th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Rocket Companies in a research note on Monday, December 29th. Wells Fargo & Company raised their price target on Rocket Companies from $15.00 to $17.00 and gave the stock an “equal weight” rating in a report on Wednesday, November 5th. Barclays set a $22.00 price objective on shares of Rocket Companies and gave the company an “equal weight” rating in a report on Tuesday, January 6th. Finally, Jefferies Financial Group began coverage on shares of Rocket Companies in a research report on Friday, December 19th. They set a “buy” rating and a $25.00 price target for the company. Five analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $20.50.

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.