Rocket Companies (NYSE:RKT) Trading 6.6% Higher – Still a Buy?

Rocket Companies, Inc. (NYSE:RKT) shares traded up 6.6% on Tuesday . The company traded as high as $13.25 and last traded at $13.1650. 4,981,014 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 27,801,709 shares. The stock had previously closed at $12.35.

Key Rocket Companies News

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

• Positive Sentiment: Rocket’s Redfin-powered housing data suggests some parts of the market are improving, with closed home sales rising to the highest level since 2022 and buyer-friendly conditions persisting in several major markets, which could support future transaction volume and mortgage activity. Rising Rates Stall Housing Market Momentum Just After Closed Home Sales Hit Highest Level Since 2022
• Neutral Sentiment: Rocket Companies announced a private offering of $600 million in senior notes due 2031 and $600 million due 2034, a move that could strengthen liquidity or refinance obligations, but also adds leverage and interest expense. Rocket Companies Announces Offering of Senior Notes due 2031 and Senior Notes due 2034
• Neutral Sentiment: Commentary on Rocket’s broader fintech strategy highlights its Redfin and Mr. Cooper deals, but investors remain cautious because earnings visibility is still tied to mortgage rates and housing demand. RKT Falls Sharply in a Week: What’s Keeping Investors on the Sidelines?
• Negative Sentiment: RKT remains pressured by higher mortgage rates, weak home sales, and muted refinancing activity, which are clouding the outlook for Rocket’s core mortgage business and helping explain the recent slide in the shares. Rocket Companies (RKT) Is Down 12.8% After Housing Jitters Clash With Its Expanding Fintech Ambitions – Has The Bull Case Changed?

Wall Street Analyst Weigh In

RKT has been the subject of several recent analyst reports. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $20.00 target price on shares of Rocket Companies in a report on Monday, May 11th. Wells Fargo & Company reduced their price target on shares of Rocket Companies from $19.00 to $17.00 and set an “equal weight” rating for the company in a research report on Thursday, April 9th. Stephens began coverage on shares of Rocket Companies in a research note on Thursday, April 23rd. They issued an “overweight” rating and a $22.50 price objective for the company. Barclays upgraded shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and lowered their price objective for the stock from $22.00 to $19.00 in a research report on Monday, April 6th. Finally, Zacks Research raised shares of Rocket Companies from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 12th. Nine research 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 presently has an average rating of “Moderate Buy” and an average price target of $20.93.

Rocket Companies Trading Up 6.2%

The company has a market cap of $37.11 billion, a PE ratio of 262.54 and a beta of 2.19. The company has a debt-to-equity ratio of 1.13, a quick ratio of 4.37 and a current ratio of 4.37. The company has a 50 day simple moving average of $14.50 and a two-hundred day simple moving average of $17.20.

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

Institutional Investors Weigh In On Rocket Companies

A number of institutional investors have recently modified their holdings of the stock. Truvestments Capital LLC purchased a new stake in shares of Rocket Companies during the fourth quarter worth $26,000. Acumen Wealth Advisors LLC purchased a new position in Rocket Companies in the fourth quarter valued at about $26,000. Pinnacle Bancorp Inc. grew its stake in Rocket Companies by 369.7% in the fourth quarter. Pinnacle Bancorp Inc. now owns 1,503 shares of the company’s stock valued at $29,000 after purchasing an additional 1,183 shares in the last quarter. City State Bank acquired a new position in Rocket Companies in the 4th quarter worth about $30,000. Finally, Smithfield Trust Co purchased a new stake in shares of Rocket Companies during the 4th quarter worth about $32,000. 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.