Rocket Companies (NYSE:RKT) Sets New 1-Year Low – Here’s Why

Rocket Companies, Inc. (NYSE:RKT)’s share price reached a new 52-week low on Monday . The company traded as low as $12.33 and last traded at $12.3250, with a volume of 7653558 shares. The stock had previously closed at $12.65.

Key Rocket Companies News

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

• Neutral Sentiment: Rocket Companies was highlighted in a general fintech stocks watchlist, which is not a direct company-specific catalyst. Promising Fintech Stocks To Watch Today – June 7th
• Neutral Sentiment: The company’s Redfin unit reported that U.S. housing conditions remain favorable for buyers, with more sellers than buyers in many markets. This reflects a soft housing backdrop that could help affordability-driven demand, but it is not a direct earnings update. Nashville, Miami and Austin—Once Pandemic Homebuying Hotspots—Are This Spring’s Strongest Buyer’s Markets
• Negative Sentiment: Rocket Companies announced a new private offering of senior notes due 2031 and 2034, increasing borrowing and adding debt to the balance sheet. Investors may view the added interest burden as a drag on profitability. Rocket Companies Announces Offering of Senior Notes due 2031 and Senior Notes due 2034
• Negative Sentiment: The note sale was later upsized and priced at higher total size, reinforcing concerns that Rocket Companies is leaning more heavily on debt financing. Rocket Companies Announces Upsizing and Pricing of Senior Notes due 2031 and Senior Notes due 2034

Analyst Upgrades and Downgrades

Several research analysts have recently commented on RKT shares. Zacks Research raised Rocket Companies from a “strong sell” rating to a “hold” rating in a research report on Tuesday, May 12th. JPMorgan Chase & Co. cut their target price on Rocket Companies from $24.00 to $16.50 and set a “neutral” rating on the stock in a research note on Thursday, April 9th. Barclays upgraded shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and reduced their target price for the stock from $22.00 to $19.00 in a report on Monday, April 6th. Compass Point assumed coverage on shares of Rocket Companies in a report on Tuesday, March 10th. They issued a “buy” rating and a $21.00 price target on the stock. Finally, Stephens began coverage on shares of Rocket Companies in a research report on Thursday, April 23rd. They issued an “overweight” rating and a $22.50 price objective on the stock. Nine analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $20.93.

Rocket Companies Trading Down 5.1%

The company has a 50 day moving average of $14.49 and a two-hundred day moving average of $17.18. The stock has a market capitalization of $35.38 billion, a PE ratio of 249.86 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.

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

Institutional Investors Weigh In On Rocket Companies

Institutional investors and hedge funds have recently made changes to their positions in the stock. Truvestments Capital LLC purchased a new position in Rocket Companies in the 4th quarter worth $26,000. Acumen Wealth Advisors LLC acquired a new position in shares of Rocket Companies in the fourth quarter valued at about $26,000. Pinnacle Bancorp Inc. raised its stake in shares of Rocket Companies by 369.7% in the fourth quarter. Pinnacle Bancorp Inc. now owns 1,503 shares of the company’s stock worth $29,000 after purchasing an additional 1,183 shares during the last quarter. City State Bank acquired a new stake in shares of Rocket Companies during the fourth quarter worth about $30,000. Finally, Smithfield Trust Co purchased a new stake in Rocket Companies in the fourth quarter valued at approximately $32,000. 4.59% of the stock is currently owned by institutional investors and hedge funds.

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.