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

Rocket Companies, Inc. (NYSE:RKT) saw unusually large options trading on Thursday. Investors purchased 81,651 call options on the company. This is an increase of 38% compared to the average volume of 59,141 call options.

Wall Street Analyst Weigh In

RKT has been the subject of a number of analyst reports. Barclays reduced their price objective on shares of Rocket Companies from $19.00 to $17.00 and set an “overweight” rating for the company in a research note on Tuesday, July 7th. Morgan Stanley upgraded shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $18.00 to $19.00 in a report on Thursday, July 16th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $16.00 price objective (up from $15.00) on shares of Rocket Companies in a research report on Wednesday, August 12th. BTIG Research reiterated a “neutral” rating on shares of Rocket Companies in a research note on Tuesday, June 16th. Finally, Stephens cut their target price on shares of Rocket Companies from $22.50 to $20.00 and set an “overweight” rating for the company in a research report on Friday, August 7th. Nine research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, Rocket Companies currently has a consensus rating of “Moderate Buy” and an average price target of $19.57.

Insider Activity at Rocket Companies

In other news, Rocket Mortgage CEO Jesse Bray sold 225,000 shares of the company’s stock in a transaction on 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 completion of the sale, the insider directly owned 7,953,027 shares of the company’s stock, valued at $104,264,183.97. This represents a 2.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 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 Inflows and Outflows

Several institutional investors have recently bought and sold shares of RKT. Amundi raised its position in shares of Rocket Companies by 152.1% in the 1st quarter. Amundi now owns 13,725,878 shares of the company’s stock valued at $195,594,000 after buying an additional 8,280,463 shares in the last quarter. Prescott Group Capital Management L.L.C. acquired a new stake in shares of Rocket Companies during the 4th quarter worth approximately $4,259,000. Andra AP fonden increased its stake in Rocket Companies by 48.0% in the first quarter. Andra AP fonden now owns 729,357 shares of the company’s stock valued at $10,393,000 after acquiring an additional 236,632 shares during the last quarter. Swiss National Bank increased its stake in Rocket Companies by 7.2% in the first quarter. Swiss National Bank now owns 2,696,000 shares of the company’s stock valued at $38,418,000 after acquiring an additional 180,500 shares during the last quarter. Finally, OCO Capital Partners L.P. acquired a new position in Rocket Companies during the fourth quarter valued at approximately $68,728,000. Institutional investors own 4.59% of the company’s stock.

Rocket Companies Stock Performance

RKT stock opened at $12.28 on Friday. 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 $34.76 billion, a price-to-earnings ratio of 87.68, a P/E/G ratio of 3.45 and a beta of 2.20. Rocket Companies has a 12 month low of $12.17 and a 12 month high of $24.36. The firm has a 50 day moving average of $13.78 and a two-hundred day moving average of $14.29.

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

Trending Headlines about Rocket Companies

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

• Positive Sentiment: Barclays reiterated its Buy rating on RKT, supporting the view that Rocket Companies can benefit from a potential recovery in mortgage activity. Barclays Sticks to Their Buy Rating for Rocket Companies
• Positive Sentiment: Investors purchased about 81,651 call options, roughly 38% above typical daily volume, indicating increased speculative interest in a potential rebound.
• Positive Sentiment: Zacks identified Rocket Companies as one of the mortgage-related services stocks best positioned to navigate industry headwinds, despite high interest rates. 3 Mortgage and Related Services Stocks to Watch Amid Industry Headwinds
• Neutral Sentiment: Redfin reported that seller concessions were involved in 44.7% of U.S. home sales in August, highlighting better negotiating conditions for buyers. This could support transaction volume over time but also reflects a softer housing market. Nearly Half of Homebuyers Get Concessions From Sellers
• Negative Sentiment: Pending home sales fell 3.5% week over week to their lowest level in nearly three years. Weak purchase demand is a direct concern for Rocket Mortgage’s origination business. Redfin Reports Pending Home Sales Dip to Lowest Level in Nearly 3 Years
• Negative Sentiment: Rocket Mortgage CEO Jesse Bray sold 225,000 shares worth approximately $2.95 million. Although the sale was conducted under a pre-arranged Rule 10b5-1 plan, it may weigh on sentiment.
• Negative Sentiment: A bearish commentary cited valuation concerns and reasons to sell RKT, adding pressure while the stock trades below its 50-day and 200-day moving averages. 3 Reasons to Sell RKT and 1 Stock to Buy Instead

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.