Rocket Companies (NYSE:RKT) Reaches New 1-Year Low – Time to Sell?

Rocket Companies, Inc. (NYSE:RKT)’s stock price reached a new 52-week low during mid-day trading on Monday . The company traded as low as $12.15 and last traded at $12.3390, with a volume of 1757250 shares traded. The stock had previously closed at $12.29.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on RKT. Barclays dropped their price target on Rocket Companies from $19.00 to $17.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 7th. Wells Fargo & Company decreased their price objective on Rocket Companies from $17.00 to $15.00 and set an “equal weight” rating for the company in a report on Friday, August 7th. Weiss Ratings cut Rocket Companies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, August 21st. BTIG Research reaffirmed a “neutral” rating on shares of Rocket Companies in a report on Tuesday, June 16th. Finally, Keefe, Bruyette & Woods cut their target price on shares of Rocket Companies from $20.00 to $19.00 and set an “outperform” rating for the company in a research report on Monday, August 10th. Nine investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, Rocket Companies currently has a consensus rating of “Moderate Buy” and an average target price of $19.57.

Rocket Companies Price Performance

The business’s 50-day moving average price is $13.72 and its 200 day moving average price is $14.22. The company has a quick ratio of 4.85, a current ratio of 4.85 and a debt-to-equity ratio of 1.16. The company has a market capitalization of $36.12 billion, a P/E ratio of 91.12, a price-to-earnings-growth ratio of 3.40 and a beta of 2.20.

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

Insider Activity

In other news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the stock in a transaction dated Tuesday, September 15th. The stock was 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 in the company, valued at approximately $104,264,183.97. This represents a 2.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 57.68% of the company’s stock.

Hedge Funds Weigh In On Rocket Companies

A number of large investors have recently added to or reduced their stakes in the business. Amundi increased its stake in shares of Rocket Companies by 152.1% in the first quarter. Amundi now owns 13,725,878 shares of the company’s stock worth $195,594,000 after buying an additional 8,280,463 shares during the period. Andra AP fonden lifted its holdings in Rocket Companies by 48.0% in the first quarter. Andra AP fonden now owns 729,357 shares of the company’s stock worth $10,393,000 after buying an additional 236,632 shares during the period. Swiss National Bank boosted its position in shares of Rocket Companies by 7.2% during the first quarter. Swiss National Bank now owns 2,696,000 shares of the company’s stock valued at $38,418,000 after purchasing an additional 180,500 shares in the last quarter. OCO Capital Partners L.P. bought a new stake in shares of Rocket Companies during the 4th quarter valued at $68,728,000. Finally, Maple Rock Capital Partners Inc. grew its holdings in Rocket Companies by 76.9% in the second quarter. Maple Rock Capital Partners Inc. now owns 5,543,600 shares of the company’s stock worth $87,312,000 after purchasing an additional 2,410,400 shares during the period. Hedge funds and other institutional investors own 4.59% of the company’s stock.

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.