OCO Capital Partners L.P. Makes New Investment in Rocket Companies, Inc. $RKT

OCO Capital Partners L.P. purchased a new stake in Rocket Companies, Inc. (NYSE:RKT) in the 4th quarter, HoldingsChannel.com reports. The fund purchased 3,550,000 shares of the company’s stock, valued at approximately $68,728,000. Rocket Companies accounts for 13.2% of OCO Capital Partners L.P.’s holdings, making the stock its 2nd biggest holding.

Other hedge funds have also recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of 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 buying an additional 64,311,040 shares in the last quarter. Morgan Stanley grew its position in Rocket Companies by 461.2% during the fourth quarter. Morgan Stanley now owns 27,009,279 shares of the company’s stock worth $522,900,000 after buying an additional 22,196,782 shares in the last quarter. State Street Corp grew its position in Rocket Companies by 323.9% during the fourth quarter. State Street Corp now owns 20,688,336 shares of the company’s stock worth $400,526,000 after buying an additional 15,807,776 shares in the last quarter. Geode Capital Management LLC increased its stake in Rocket Companies by 265.0% in the 4th quarter. Geode Capital Management LLC now owns 15,539,351 shares of the company’s stock worth $299,939,000 after acquiring an additional 11,282,009 shares during the last quarter. Finally, Durable Capital Partners LP bought a new position in Rocket Companies in the 3rd quarter worth about $213,010,000. 4.59% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on RKT shares. Weiss Ratings upgraded Rocket Companies from a “sell (d)” rating to a “hold (c)” rating in a research report on Wednesday, May 13th. Wells Fargo & Company decreased their price objective on shares of Rocket Companies from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 9th. JPMorgan Chase & Co. dropped their target price on shares of Rocket Companies from $24.00 to $16.50 and set a “neutral” rating for the company in a research report on Thursday, April 9th. Zacks Research raised shares of Rocket Companies from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 12th. Finally, BTIG Research reissued a “neutral” rating on shares of Rocket Companies in a report on Tuesday. Eight research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Rocket Companies has a consensus rating of “Hold” and an average target price of $20.93.

Key Stories Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Negative Sentiment: BTIG cut Rocket Companies to Neutral, saying the stock now has limited upside potential after its recent move and that near-term results may be pressured by the interest-rate backdrop. Rocket Companies cut to Neutral at BTIG on limited upside potential
• Negative Sentiment: Another report highlighted that rising mortgage rates are likely to weigh on Rocket’s loan volumes in the near term, which is a headwind for origination-driven revenue. Rising mortgage rates put near-term pressure on Rocket Companies’ volumes
• Neutral Sentiment: BTIG also said the broader mortgage sector still looks attractive over the medium term if rates stabilize, suggesting Rocket could benefit later from improving efficiency and a recovery in mortgage demand. BTIG sees upside in mortgage stocks despite higher rates, names Rithm top pick
• Neutral Sentiment: Coverage noting that Rocket was downgraded by a Wall Street analyst adds to the cautious tone around the name, but the report does not point to a company-specific operational problem. Palantir upgraded, Rocket Companies downgraded: Wall Street’s top analyst calls
• Neutral Sentiment: Rocket’s real estate arm Redfin discussed possible housing-demand benefits from a potential SpaceX IPO in San Antonio, which could be a localized positive for housing activity, though it is not a near-term catalyst for the stock. How A SpaceX IPO Could Shape Rocket Companies’ San Antonio Outlook

Rocket Companies Price Performance

Shares of Rocket Companies stock opened at $13.97 on Wednesday. The firm has a market capitalization of $39.54 billion, a PE ratio of 279.46 and a beta of 2.19. The company has a current ratio of 4.37, a quick ratio of 4.37 and a debt-to-equity ratio of 1.13. Rocket Companies, Inc. has a 12 month low of $12.17 and a 12 month high of $24.36. The business’s 50-day moving average price is $14.39 and its 200-day moving average price is $17.01.

Rocket Companies (NYSE:RKT) last released its earnings results on Thursday, May 7th. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.03. The company had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.76 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.Rocket Companies’s quarterly revenue was up 167.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.04 EPS. Sell-side analysts forecast that Rocket Companies, Inc. will post 0.65 EPS for the current fiscal year.

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.