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

Rocket Companies, Inc. (NYSE:RKT) was the target of unusually large options trading activity on Friday. Investors purchased 194,624 call options on the company. This is an increase of approximately 53% compared to the typical daily volume of 127,005 call options.

Insider Activity

In other news, Director Matthew Rizik sold 2,500 shares of the company’s stock in a transaction dated Wednesday, December 24th. The shares were sold at an average price of $19.44, for a total transaction of $48,600.00. Following the completion of the transaction, the director directly 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders have sold a total of 35,000 shares of company stock valued at $665,000 in the last 90 days. 92.64% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rocket Companies

Institutional investors have recently made changes to their positions in the company. Durable Capital Partners LP bought a new position in Rocket Companies during the 3rd quarter worth about $213,010,000. ValueAct Holdings L.P. lifted its position in shares of Rocket Companies by 67.9% in the 3rd quarter. ValueAct Holdings L.P. now owns 25,395,627 shares of the company’s stock worth $492,167,000 after purchasing an additional 10,270,018 shares during the period. Fred Alger Management LLC boosted its stake in shares of Rocket Companies by 7,412.6% during the third quarter. Fred Alger Management LLC now owns 6,078,800 shares of the company’s stock valued at $117,807,000 after purchasing an additional 5,997,885 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Rocket Companies by 29.5% during the third quarter. Vanguard Group Inc. now owns 22,945,500 shares of the company’s stock valued at $444,684,000 after purchasing an additional 5,226,931 shares in the last quarter. Finally, Third Point LLC purchased a new position in Rocket Companies during the second quarter valued at approximately $67,355,000. Hedge funds and other institutional investors own 4.59% of the company’s stock.

Analyst Ratings Changes

RKT has been the subject of a number of recent analyst reports. BTIG Research reaffirmed a “buy” rating and set a $25.00 price target on shares of Rocket Companies in a research report on Wednesday, November 19th. Royal Bank Of Canada upped their target price on Rocket Companies from $17.00 to $20.00 and gave the company a “sector perform” rating in a report on Wednesday, October 8th. Wall Street Zen lowered Rocket Companies from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. UBS Group set a $17.00 price target on shares of Rocket Companies and gave the company a “neutral” rating in a report on Friday, October 10th. Finally, Keefe, Bruyette & Woods upped their price objective on shares of Rocket Companies from $18.00 to $20.00 and gave the stock a “market perform” rating in a report on Thursday, December 18th. Five analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $19.54.

Rocket Companies Price Performance

RKT opened at $23.29 on Friday. The company has a market cap of $49.00 billion, a price-to-earnings ratio of 291.10 and a beta of 2.29. The stock has a fifty day simple moving average of $18.77 and a two-hundred day simple moving average of $17.74. Rocket Companies has a 12-month low of $10.06 and a 12-month high of $23.42. 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 (NYSE:RKT) last posted its quarterly earnings results on Thursday, October 30th. The company reported $0.07 earnings per share for the quarter, meeting the consensus estimate of $0.07. Rocket Companies had a negative net margin of 1.77% and a positive return on equity of 2.83%. The firm had revenue of $1.78 billion during the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter in the previous year, the firm posted $0.08 earnings per share. The company’s revenue was up 148.1% on a year-over-year basis. Research analysts predict that Rocket Companies will post 0.15 earnings per share for the current fiscal year.

More Rocket Companies News

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

• Positive Sentiment: Policy catalyst — Former President Trump floated a roughly $200 billion mortgage bond purchase plan that would likely push mortgage rates lower and directly benefit originators/servicers like Rocket by increasing refinance and purchase activity. This is the primary driver behind the stock’s strength. Stock Market Today, Jan. 9: Rocket Companies Surges After Trump Floats $200 Billion Mortgage Bond Purchase Plan
• Positive Sentiment: Market reaction and media coverage — News outlets reported an immediate pop and after-hours jump tied to the housing-policy pledge, helping feed momentum and investor interest in RKT. Rocket Stock Pops on Trump’s Plans to Buy Mortgage Bonds Rocket Companies (RKT) Stock Jumps After Hours On Trump Housing Market Pledge
• Positive Sentiment: Unusual options activity — Traders bought ~194,624 call options (about +53% vs. average), signaling speculative bullish positioning that can amplify short-term upside if momentum continues. (No article link)
• Neutral Sentiment: Insider activity — Director Matthew Rizik sold 2,500 shares at ~$21.26 (a very small portion of his ~1.05M holding). The sale was disclosed on Form 4; the size suggests routine liquidity rather than a major red flag. SEC Form 4 — Rizik sale
• Negative Sentiment: Valuation and profitability risk — Rocket trades at a very elevated P/E and still shows a negative net margin despite rapid revenue growth; those fundamentals could limit sustained upside if mortgage-rate relief fails to materialize or policy plans stall. RKT profile and financials

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.