Rocket Companies (NYSE:RKT) Stock Sees Heavy Call Option Buying

Rocket Companies, Inc. (NYSE:RKT) saw unusually large options trading activity on Monday. Stock investors acquired 90,488 call options on the company. This is an increase of 38% compared to the typical daily volume of 65,427 call options.

Rocket Companies Stock Performance

Shares of RKT traded up $0.95 during midday trading on Monday, hitting $13.75. 47,010,573 shares of the stock traded hands, compared to its average volume of 30,406,688. The business’s 50 day moving average price is $12.38 and its two-hundred day moving average price is $14.76. The firm has a market capitalization of $38.93 billion, a PE ratio of 30.55, a price-to-earnings-growth ratio of 3.85 and a beta of 2.26. The company has a debt-to-equity ratio of 1.02, a quick ratio of 4.85 and a current ratio of 3.77. Rocket Companies has a 1-year low of $10.18 and a 1-year high of $24.36.

Rocket Companies (NYSE:RKT) last issued its quarterly earnings data on Thursday, October 29th. The company reported $0.15 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.01. The firm had revenue of $2.57 billion for the quarter, compared to the consensus estimate of $2.58 billion. Rocket Companies had a net margin of 11.14% and a return on equity of 5.33%. Rocket Companies’s quarterly revenue was up 37.4% compared to the same quarter last year. During the same period last year, the firm posted $0.07 EPS. Equities research analysts predict that Rocket Companies will post 0.47 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. Morgan Stanley set a $16.00 price objective on shares of Rocket Companies and gave the stock an “overweight” rating in a research note on Monday, October 12th. Wells Fargo & Company set a $13.00 target price on Rocket Companies and gave the company an “equal weight” rating in a research note on Tuesday, October 6th. Weiss Ratings raised Rocket Companies from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, October 8th. Keefe, Bruyette & Woods dropped their price target on Rocket Companies from $20.00 to $19.00 and set an “outperform” rating on the stock in a research report on Monday, August 10th. Finally, Barclays dropped their price target on Rocket Companies from $17.00 to $15.00 and set an “overweight” rating on the stock in a research report on Monday, October 5th. Eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Rocket Companies currently has a consensus rating of “Moderate Buy” and an average target price of $18.75.

Key Stories Impacting Rocket Companies

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

• Positive Sentiment: Lower Treasury yields boosted housing stocks. Rocket led a broader rally among mortgage and real-estate platforms as retreating bond yields improved expectations for borrowing costs and refinancing activity. Rocket Companies Jumps 9%, Compass and Zillow Surge as Treasury Yields Retreat
• Positive Sentiment: Recent earnings provided fundamental support. Coverage highlighted third-quarter adjusted EPS of $0.15, revenue of $3.28 billion and a 29% adjusted EBITDA margin, along with management’s $2.1 billion–$2.3 billion fourth-quarter adjusted-revenue outlook and expected Mr. Cooper acquisition synergies. Rocket Companies: Stunning Growth In A Terrible Housing Market
• Positive Sentiment: Options activity suggested increased bullish interest. Traders purchased 90,488 call options, about 38% above typical call volume, indicating heightened speculation or demand for upside exposure.
• Positive Sentiment: Some analysts see substantial upside. JPMorgan reportedly forecast strong price appreciation, supporting the bullish case tied to Rocket’s profitability and strategic scale. JPMorgan Forecasts Strong Price Appreciation for Rocket Companies
• Neutral Sentiment: Analyst opinion remains mixed. Royal Bank of Canada lowered its price target, while other coverage described the stock as potentially overvalued despite improving profits. Royal Bank of Canada Reduces Rocket Companies Price Target
• Negative Sentiment: New mortgage originations remain a concern. Analysts cautioned that Rocket continues to operate in a depressed mortgage market, making sustained growth dependent on lower rates, stronger housing activity and successful integration-related cost savings. Rocket Companies: Struggling With New Originations

Insider Buying and Selling at Rocket Companies

In other news, CEO Jesse Bray sold 92,300 shares of the firm’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $12.39, for a total value of $1,143,597.00. Following the transaction, the chief executive officer directly owned 7,728,027 shares in the company, valued at approximately $95,750,254.53. This trade represents a 1.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 450,000 shares of company stock worth $5,687,074 over the last 90 days. 57.68% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rocket Companies

A number of hedge funds have recently made changes to their positions in RKT. Amundi boosted its position in shares of Rocket Companies by 152.1% during the first quarter. Amundi now owns 13,725,878 shares of the company’s stock worth $195,594,000 after buying an additional 8,280,463 shares during the period. Wellington Management Group LLP increased its position in Rocket Companies by 64.5% in the 2nd quarter. Wellington Management Group LLP now owns 9,029,295 shares of the company’s stock valued at $142,211,000 after acquiring an additional 3,541,916 shares during the period. Maple Rock Capital Partners Inc. raised its stake in Rocket Companies by 76.9% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 5,543,600 shares of the company’s stock valued at $87,312,000 after acquiring an additional 2,410,400 shares in the last quarter. Atreides Management LP raised its stake in Rocket Companies by 69.7% during the 1st quarter. Atreides Management LP now owns 6,114,947 shares of the company’s stock valued at $87,138,000 after acquiring an additional 2,512,384 shares in the last quarter. Finally, Assenagon Asset Management S.A. bought a new stake in Rocket Companies during the 2nd quarter valued at $74,874,000. Institutional investors own 4.59% of the company’s stock.

Rocket Companies Company Profile

Rocket Companies, Inc is a Detroit-based financial technology company that operates a portfolio of consumer finance and real estate businesses. Its platform is designed to simplify the homeownership process through digital applications, automated workflows and online customer support.

The company’s principal business is Rocket Mortgage, a residential mortgage lender and servicer offering home purchase, refinance and home equity products. Its broader portfolio includes Rocket Homes, a real estate services platform; Rocket Money, a personal finance app that helps consumers manage subscriptions, budgets and bills; Rocket Loans, which provides personal loans; and Rocket Pro, which supports mortgage brokers and other partners.

Rocket Companies traces its history to 1985, when Dan Gilbert founded Rock Financial.