Rocket Companies Inc. (RKT) expanding its growth trajectory ahead

Rocket Companies Inc. (NYSE: RKT) stock fell -2.30% on Thursday to $7.66 against a previous-day closing price of $7.84. With 2.88 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.36 million shares. During the session, the Mortgage Finance company that operates in wider Financial sector, reached to the highest price of $7.98 whereas the lowest price it dropped to was $7.56. The 52-week range on RKT shows that it touched its highest point at $11.38 and its lowest point at $5.97 during that stretch. It currently has a 1-year price target of $8.00.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RKT was down-trending over the past week, with a drop of -7.04%, but this was down by -10.20% over a month. Three-month performance dropped to -2.67% while six-month performance rose 3.79%. The stock lost -12.46% in the past year, while it has gained 9.43% so far this year. A look at the trailing 12-month EPS for RKT yields -0.23 with Next year EPS estimates of 0.51. For the next quarter, that number is -0.04. This implies an EPS growth rate of -88.00% for this year and 828.60% for next year.

Float and Shares Shorts:

At present, 1.98 billion RKT shares are outstanding with a float of 118.91 million shares on hand for trading. On Apr 27, 2023, short shares totaled 32.93 million, which was 26.02% higher than short shares on Mar 30, 2023. In addition to Mr. Daniel B. Gilbert as the firm’s Founder & Chairman, Mr. Jay D. Farner serves as its Chief Exec. Officer.

Institutional Ownership:

Through their ownership of 71.45% of RKT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.36% of RKT, in contrast to 37.03% held by mutual funds. Shares owned by individuals account for 28.29%. As the largest shareholder in RKT with 8.99% of the stake, Fidelity Management & Research Co holds 11,224,865 shares worth 11,224,865. A second-largest stockholder of RKT, The Vanguard Group, Inc., holds 10,742,463 shares, controlling over 8.60% of the firm’s shares. Caledonia is the third largest shareholder in RKT, holding 5,303,070 shares or 4.25% stake. With a 3.43% stake in RKT, the Invesco Main Street Fund is the largest stakeholder. A total of 4,284,044 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 2.88% of RKT stock, is the second-largest Mutual Fund holder. It holds 3,595,941 shares valued at 32.04 million. Vanguard Total Stock Market ETF holds 2.87% of the stake in RKT, owning 3,582,194 shares worth 31.92 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RKT since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RKT analysts setting a high price target of $10.00 and a low target of $6.00, the average target price over the next 12 months is $8.11. Based on these targets, RKT could surge 30.55% to reach the target high and fall by -21.67% to reach the target low. Reaching the average price target will result in a growth of 5.87% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded RKT stock several times over the past three months with 4 Buys and 2 Sells. In these transactions, 1,504,629 shares were bought while 121,408 shares were sold. The number of buy transactions has increased to 291 while that of sell transactions has risen to 4 over the past year. The total number of shares bought during that period was 5,724,677 while 206,937 shares were sold.