Rocket Companies (NYSE:RKT) Shares Gap Up – Time to Buy?

Shares of Rocket Companies, Inc. (NYSE:RKT) gapped up prior to trading on Friday. The stock had previously closed at $11.97, but opened at $12.66. Rocket Companies shares last traded at $12.2580, with a volume of 6,300,095 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have commented on RKT. Keefe, Bruyette & Woods decreased their target price on shares of Rocket Companies from $20.00 to $19.00 and set an “outperform” rating on the stock in a report on Monday, August 10th. JPMorgan Chase & Co. decreased their price objective on shares of Rocket Companies from $15.50 to $14.00 and set a “neutral” rating on the stock in a research note on Friday, August 7th. Morgan Stanley upgraded Rocket Companies from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $18.00 to $19.00 in a research note on Thursday, July 16th. Weiss Ratings lowered Rocket Companies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, August 21st. Finally, Benchmark dropped their price objective on Rocket Companies from $21.00 to $19.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Nine analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $19.57.

Rocket Companies Stock Performance

The company has a debt-to-equity ratio of 1.16, a quick ratio of 4.85 and a current ratio of 4.85. The company has a market cap of $33.49 billion, a price-to-earnings ratio of 84.90, a P/E/G ratio of 3.16 and a beta of 2.23. The company has a fifty day moving average of $13.43 and a two-hundred day moving average of $14.06.

Rocket Companies (NYSE:RKT) last issued its earnings results on Thursday, August 6th. The company reported $0.16 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.16. The business had revenue of $2.76 billion during the quarter, compared to analysts’ expectations 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 for the quarter was up 91.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.04 EPS. Equities research analysts anticipate that Rocket Companies, Inc. will post 0.52 EPS for the current year.

Insider Buying and Selling

In other Rocket Companies news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the business’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 sale, the insider directly owned 7,953,027 shares of the company’s stock, valued at $104,264,183.97. The trade was a 2.75% decrease in their position. The transaction 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 currently owned by corporate insiders.

Institutional Trading of Rocket Companies

Several institutional investors have recently modified their holdings of RKT. Envestnet Portfolio Solutions Inc. bought a new position in Rocket Companies during the 2nd quarter worth $164,000. Integrated Wealth Concepts LLC lifted its stake in shares of Rocket Companies by 32.8% in the second quarter. Integrated Wealth Concepts LLC now owns 142,805 shares of the company’s stock worth $2,249,000 after acquiring an additional 35,239 shares during the period. Nykredit A S bought a new stake in Rocket Companies in the second quarter valued at approximately $2,980,000. Greenland Capital Management LP increased its position in Rocket Companies by 84.6% during the 2nd quarter. Greenland Capital Management LP now owns 48,000 shares of the company’s stock valued at $756,000 after purchasing an additional 22,000 shares during the period. Finally, Ameritas Advisory Services LLC bought a new position in Rocket Companies during the 2nd quarter worth approximately $113,000. Institutional investors own 4.59% of the company’s stock.

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based fintech platform that provides digital financial and real estate services primarily to consumers in the United States. Its operations are centered on helping customers obtain, manage and refinance home loans, while also offering related services across the homeownership and personal finance lifecycle.

The company’s principal businesses include Rocket Mortgage, a digital mortgage lender and originator; Rocket Homes, a real estate marketplace and agent-referral platform; Rocket Money, a personal finance application that helps users manage subscriptions, budgets and bills; and Rocket Loans, which provides personal loans.