Rocket Companies (NYSE:RKT) Posts Earnings Results, Misses Estimates By $0.05 EPS

Rocket Companies (NYSE:RKT – Get Rating) issued its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.05), Briefing.com reports. The company had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.53 billion. Rocket Companies had a return on equity of 31.45% and a net margin of 2.16%. Rocket Companies’s quarterly revenue was down 47.8% compared to the same quarter last year. During the same period last year, the firm posted $0.44 earnings per share.

Rocket Companies Price Performance

Shares of RKT traded down $0.34 during midday trading on Friday, hitting $9.95. 6,822,234 shares of the company traded hands, compared to its average volume of 4,715,636. The stock has a 50-day moving average of $8.46 and a 200-day moving average of $9.95. Rocket Companies has a one year low of $6.27 and a one year high of $19.55. The firm has a market cap of $19.60 billion, a P/E ratio of 5.99, a PEG ratio of 4.17 and a beta of 1.72. The company has a debt-to-equity ratio of 1.40, a current ratio of 13.54 and a quick ratio of 13.54.

Analysts Set New Price Targets

A number of brokerages recently weighed in on RKT. Argus downgraded shares of Rocket Companies from a “buy” rating to a “hold” rating in a report on Tuesday, May 31st. Citigroup downgraded shares of Rocket Companies from a “buy” rating to a “neutral” rating and cut their price target for the stock from $14.00 to $8.00 in a report on Wednesday, May 11th. Royal Bank of Canada cut their price target on shares of Rocket Companies from $18.00 to $9.00 in a report on Thursday, May 12th. Credit Suisse Group lowered their price objective on Rocket Companies to $9.00 and set a “neutral” rating on the stock in a research note on Thursday, May 19th. Finally, Wells Fargo & Company upgraded Rocket Companies from an “equal weight” rating to an “overweight” rating and set a $10.00 price objective on the stock in a research note on Wednesday, July 6th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $10.38.

Insider Activity

In other Rocket Companies news, CEO Jay Farner acquired 26,600 shares of the business’s stock in a transaction dated Wednesday, May 11th. The stock was bought at an average price of $7.52 per share, with a total value of $200,032.00. Following the completion of the acquisition, the chief executive officer now owns 2,109,607 shares of the company’s stock, valued at $15,864,244.64. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders have purchased a total of 819,800 shares of company stock worth $6,843,633 over the last ninety days. Company insiders own 94.01% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Advisory Services Network LLC purchased a new position in shares of Rocket Companies during the first quarter worth about $120,000. Wealthfront Advisers LLC purchased a new position in shares of Rocket Companies during the first quarter worth about $916,000. Advisors Asset Management Inc. grew its holdings in shares of Rocket Companies by 11.7% during the first quarter. Advisors Asset Management Inc. now owns 89,951 shares of the company’s stock worth $1,000,000 after purchasing an additional 9,445 shares in the last quarter. Point72 Hong Kong Ltd grew its holdings in shares of Rocket Companies by 84.6% during the first quarter. Point72 Hong Kong Ltd now owns 12,460 shares of the company’s stock worth $139,000 after purchasing an additional 5,709 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in Rocket Companies by 143.7% in the first quarter. Goldman Sachs Group Inc. now owns 1,049,214 shares of the company’s stock worth $11,668,000 after buying an additional 618,720 shares in the last quarter. Hedge funds and other institutional investors own 3.71% of the company’s stock.

Rocket Companies Company Profile

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Rocket Companies, Inc engages in the tech-driven real estate, mortgage, and e-Commerce businesses 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; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms; and Rocket Loans, an online-based personal loans business.