Rocket Companies Sees Unusually High Options Volume (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) was the recipient of unusually large 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.

Key Stories Impacting Rocket Companies

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 Buying and Selling

In other news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $13.11, for a total transaction of $2,949,750.00. Following the transaction, the insider directly owned 7,953,027 shares of the company’s stock, valued at approximately $104,264,183.97. This trade represents a 2.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 57.68% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rocket Companies

A number of large investors have recently made changes to their positions in RKT. Manchester Capital Management LLC grew its holdings in shares of Rocket Companies by 0.5% in the fourth quarter. Manchester Capital Management LLC now owns 116,466 shares of the company’s stock valued at $2,255,000 after purchasing an additional 618 shares in the last quarter. Red Door Wealth Management LLC lifted its holdings in Rocket Companies by 6.7% during the 1st quarter. Red Door Wealth Management LLC now owns 11,138 shares of the company’s stock worth $159,000 after buying an additional 698 shares during the last quarter. Gould Capital LLC boosted its holdings in Rocket Companies by 0.8% in the fourth quarter. Gould Capital LLC now owns 95,166 shares of the company’s stock valued at $1,842,000 after purchasing an additional 733 shares in the last quarter. IFP Advisors Inc boosted its holdings in shares of Rocket Companies by 9.4% in the 4th quarter. IFP Advisors Inc now owns 8,639 shares of the company’s stock valued at $167,000 after buying an additional 739 shares in the last quarter. Finally, Valeo Financial Advisors LLC boosted its stake in Rocket Companies by 4.2% in the second quarter. Valeo Financial Advisors LLC now owns 20,473 shares of the company’s stock valued at $322,000 after acquiring an additional 823 shares in the last quarter. 4.59% of the stock is currently owned by hedge funds and other institutional investors.

Rocket Companies Price Performance

Shares of RKT stock traded down $0.38 during mid-day trading on Thursday, hitting $12.57. 34,647,921 shares of the stock were exchanged, compared to its average volume of 28,693,813. The company has a market cap of $35.61 billion, a PE ratio of 89.74, a price-to-earnings-growth ratio of 3.62 and a beta of 2.20. Rocket Companies has a 52-week low of $12.17 and a 52-week high of $24.36. The firm has a fifty day moving average of $13.87 and a 200 day moving average of $14.35. The company has a quick ratio of 4.85, a current ratio of 4.85 and a debt-to-equity ratio of 1.16.

Rocket Companies (NYSE:RKT) last announced its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.16. The firm had revenue of $2.76 billion for the quarter, compared to analyst estimates of $2.81 billion. Rocket Companies had a return on equity of 5.13% and a net margin of 4.70%.The business’s revenue was up 91.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.04 EPS. Research analysts anticipate that Rocket Companies will post 0.52 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research firms have commented on RKT. Weiss Ratings downgraded shares of Rocket Companies from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, August 21st. BTIG Research reissued a “neutral” rating on shares of Rocket Companies in a report on Tuesday, June 16th. Benchmark dropped their price objective on shares of Rocket Companies from $21.00 to $19.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Royal Bank Of Canada reissued a “sector perform” rating and set a $16.00 price target (up from $15.00) on shares of Rocket Companies in a research report on Wednesday, August 12th. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of Rocket Companies from $20.00 to $19.00 and set an “outperform” rating for the company in a research note on Monday, August 10th. Nine equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average 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.