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

Rocket Companies, Inc. (NYSE:RKT) was the recipient of some unusual options trading activity on Friday. Investors acquired 172,738 call options on the company. This is an increase of approximately 40% compared to the typical daily volume of 123,513 call options.

Wall Street Analyst Weigh In

RKT has been the topic of a number of recent research reports. Barclays set a $22.00 target price on Rocket Companies and gave the stock an “equal weight” rating in a report on Tuesday, January 6th. UBS Group set a $17.00 price objective on Rocket Companies and gave the company a “neutral” rating in a research report on Friday, October 10th. Jefferies Financial Group initiated coverage on shares of Rocket Companies in a research note on Friday, December 19th. They set a “buy” rating and a $25.00 price target on the stock. BTIG Research reaffirmed a “buy” rating and set a $25.00 price target on shares of Rocket Companies in a research note on Wednesday, November 19th. Finally, Wall Street Zen lowered Rocket Companies from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Five investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $20.50.

Rocket Companies Price Performance

NYSE:RKT traded down $2.80 during trading hours on Friday, hitting $17.97. 61,234,220 shares of the stock were exchanged, compared to its average volume of 33,352,246. The company has a market cap of $37.83 billion, a P/E ratio of 225.55 and a beta of 2.29. The company has a current ratio of 19.68, a quick ratio of 19.68 and a debt-to-equity ratio of 2.16. Rocket Companies has a 52-week low of $10.94 and a 52-week high of $24.36. The firm’s fifty day moving average price is $20.22 and its 200 day moving average price is $18.49.

Rocket Companies (NYSE:RKT) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.07 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.07. The business had revenue of $1.78 billion for the quarter, compared to the consensus estimate of $1.65 billion. Rocket Companies had a negative net margin of 1.77% and a positive return on equity of 2.83%. The business’s revenue was up 148.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.08 EPS. As a group, equities research analysts anticipate that Rocket Companies will post 0.15 EPS for the current fiscal year.

Insider Activity

In other news, Director Matthew Rizik sold 2,500 shares of the stock in a transaction that occurred on Wednesday, December 24th. The stock was sold at an average price of $19.44, for a total value of $48,600.00. Following the completion of the transaction, the director owned 1,066,036 shares of the company’s stock, valued at approximately $20,723,739.84. This represents a 0.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold a total of 40,000 shares of company stock worth $779,425 in the last 90 days. 92.64% of the stock is owned by insiders.

Institutional Trading of Rocket Companies

Several hedge funds and other institutional investors have recently made changes to their positions in RKT. Allspring Global Investments Holdings LLC purchased a new stake in shares of Rocket Companies in the second quarter valued at $44,102,000. Udine Wealth Management Inc. increased its holdings in Rocket Companies by 86.1% in the 3rd quarter. Udine Wealth Management Inc. now owns 168,070 shares of the company’s stock valued at $3,257,000 after purchasing an additional 77,736 shares in the last quarter. Clifford Capital Partners LLC acquired a new stake in Rocket Companies in the second quarter valued at approximately $11,487,000. Thames Capital Management LLC lifted its holdings in Rocket Companies by 54.3% in the 3rd quarter. Thames Capital Management LLC now owns 1,106,003 shares of the company’s stock worth $21,434,000 after buying an additional 389,101 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in Rocket Companies by 1,330.4% during the 2nd quarter. Russell Investments Group Ltd. now owns 197,393 shares of the company’s stock valued at $2,799,000 after purchasing an additional 183,593 shares in the last quarter. Hedge funds and other institutional investors own 4.59% of the company’s stock.

About Rocket Companies

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.