Rocket Companies (NYSE:RKT) Hits New 12-Month Low Following Analyst Downgrade

Rocket Companies, Inc. (NYSE:RKT) hit a new 52-week low during mid-day trading on Monday after The Goldman Sachs Group lowered their price target on the stock from $16.00 to $14.00. The Goldman Sachs Group currently has a neutral rating on the stock. Rocket Companies traded as low as $10.67 and last traded at $10.74, with a volume of 684087 shares trading hands. The stock had previously closed at $10.98.

Several other research firms have also issued reports on RKT. Royal Bank of Canada dropped their target price on shares of Rocket Companies from $20.00 to $18.00 and set a “sector perform” rating on the stock in a report on Wednesday, November 13th. Barclays dropped their price objective on Rocket Companies from $14.00 to $13.00 and set an “underweight” rating on the stock in a research note on Wednesday, November 13th. Piper Sandler decreased their target price on Rocket Companies from $17.00 to $16.00 and set a “neutral” rating for the company in a research note on Thursday, November 14th. JPMorgan Chase & Co. dropped their price target on Rocket Companies from $19.00 to $14.00 and set an “underweight” rating on the stock in a research note on Monday, December 9th. Finally, Wedbush reaffirmed a “neutral” rating and set a $13.00 price objective (down previously from $18.00) on shares of Rocket Companies in a research report on Wednesday, November 13th. Six equities research analysts have rated the stock with a sell rating and seven have given a hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $13.85.

Institutional Trading of Rocket Companies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp increased its stake in Rocket Companies by 44.7% in the 3rd quarter. State Street Corp now owns 4,108,189 shares of the company’s stock valued at $78,836,000 after buying an additional 1,269,795 shares during the last quarter. Renaissance Technologies LLC grew its holdings in shares of Rocket Companies by 26.1% in the second quarter. Renaissance Technologies LLC now owns 2,468,700 shares of the company’s stock valued at $33,821,000 after acquiring an additional 510,400 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Rocket Companies by 0.6% during the third quarter. Geode Capital Management LLC now owns 2,043,975 shares of the company’s stock valued at $39,235,000 after acquiring an additional 12,735 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Rocket Companies by 7.5% during the third quarter. Charles Schwab Investment Management Inc. now owns 1,040,709 shares of the company’s stock worth $19,971,000 after acquiring an additional 72,308 shares during the period. Finally, Marshall Wace LLP purchased a new position in Rocket Companies in the second quarter worth $10,811,000. 4.59% of the stock is owned by institutional investors.

Rocket Companies Price Performance

The stock has a market cap of $21.10 billion, a P/E ratio of -66.13 and a beta of 2.42. The business has a 50 day simple moving average of $13.30 and a 200-day simple moving average of $15.90. The company has a debt-to-equity ratio of 1.51, a quick ratio of 15.47 and a current ratio of 15.47.

Rocket Companies (NYSE:RKT) last posted its quarterly earnings results on Tuesday, November 12th. The company reported $0.08 earnings per share for the quarter, meeting the consensus estimate of $0.08. The company had revenue of $647.00 million during the quarter, compared to analyst estimates of $1.25 billion. Rocket Companies had a negative net margin of 0.38% and a positive return on equity of 2.86%. The firm’s revenue for the quarter was down 46.2% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.01) earnings per share. On average, sell-side analysts forecast that Rocket Companies, Inc. will post 0.16 EPS for the current year.

About Rocket Companies

Rocket Companies, Inc, a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business.