Rocket Companies (NYSE:RKT) Stock Price Down 15.7% – Here’s Why

Rocket Companies, Inc. (NYSE:RKT) dropped 15.7% during trading on Friday . The company traded as low as $17.91 and last traded at $17.5140. Approximately 5,998,691 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 30,434,291 shares. The stock had previously closed at $20.77.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. The Goldman Sachs Group reissued a “neutral” rating and issued a $22.00 price target (up previously from $16.00) on shares of Rocket Companies in a report on Wednesday, October 29th. Keefe, Bruyette & Woods upped their target price on shares of Rocket Companies from $18.00 to $20.00 and gave the company a “market perform” rating in a research note on Thursday, December 18th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Rocket Companies in a research note on Monday, October 13th. UBS Group set a $17.00 price objective on Rocket Companies and gave the company a “neutral” rating in a research note on Friday, October 10th. Finally, Wells Fargo & Company raised their target price on Rocket Companies from $15.00 to $17.00 and gave the stock an “equal weight” rating in a research report on Wednesday, November 5th. Five investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Rocket Companies has an average rating of “Hold” and an average target price of $20.50.

Rocket Companies Price Performance

The stock has a fifty day moving average of $20.23 and a 200-day moving average of $18.55. The firm has a market capitalization of $37.76 billion, a P/E ratio of 224.28 and a beta of 2.29. The company has a quick ratio of 19.68, a current ratio of 19.68 and a debt-to-equity ratio of 2.16.

Rocket Companies (NYSE:RKT) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.07 earnings per share for the quarter, meeting the consensus estimate of $0.07. Rocket Companies had a negative net margin of 1.77% and a positive return on equity of 2.83%. The firm had revenue of $1.78 billion during the quarter, compared to analysts’ expectations of $1.65 billion. During the same quarter last year, the company posted $0.08 EPS. The company’s quarterly revenue was up 148.1% compared to the same quarter last year. Equities analysts predict that Rocket Companies, Inc. will post 0.15 EPS for the current fiscal year.

Insider Transactions at Rocket Companies

In other Rocket Companies news, Director Matthew Rizik sold 2,500 shares of the stock in a transaction on Wednesday, December 24th. The stock was sold at an average price of $19.44, for a total value of $48,600.00. Following the transaction, the director directly owned 1,066,036 shares in the company, valued at approximately $20,723,739.84. This trade represents a 0.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last 90 days, insiders sold 40,000 shares of company stock worth $779,425. 92.64% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Companies

Large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in Rocket Companies by 280.3% in the fourth quarter. Vanguard Group Inc. now owns 87,256,540 shares of the company’s stock worth $1,689,287,000 after purchasing an additional 64,311,040 shares during the period. Durable Capital Partners LP bought a new position in shares of Rocket Companies in the 3rd quarter valued at about $213,010,000. ValueAct Holdings L.P. grew its position in shares of Rocket Companies by 67.9% during the 3rd quarter. ValueAct Holdings L.P. now owns 25,395,627 shares of the company’s stock worth $492,167,000 after buying an additional 10,270,018 shares during the period. Fred Alger Management LLC grew its position in shares of Rocket Companies by 7,412.6% during the 3rd quarter. Fred Alger Management LLC now owns 6,078,800 shares of the company’s stock worth $117,807,000 after buying an additional 5,997,885 shares during the period. Finally, Third Point LLC bought a new stake in shares of Rocket Companies during the second quarter worth approximately $67,355,000. 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.