Analysis of Rocket Companies Inc. (NYSE:RKT): Selected Notes

The closing price of Rocket Companies Inc. (NYSE: RKT) was $8.94 for the day, down -2.19% from the previous closing price of $9.14. In other words, the price has decreased by -$0.20 from its previous closing price. On the day, 2206753 shares were traded. RKT stock price reached its highest trading level at $9.22 during the session, while it also had its lowest trading level at $8.91.

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Ratios:

Our analysis of RKT’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 20.75 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 1.23. In the meantime, Its Debt-to-Equity ratio is 20.13 whereas as Long-Term Debt/Eq ratio is at 7.25.

Upgrades & Downgrades

JP Morgan Downgraded its Overweight to Neutral on September 06, 2022, whereas the target price for the stock was revised from $11 to $8.50.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Dec 27 when Rizik Matthew bought 2,000 shares for $6.95 per share. The transaction valued at 13,900 led to the insider holds 571,502 shares of the business.

Rizik Matthew bought 2,900 shares of RKT for $21,170 on Dec 23. The Director now owns 569,502 shares after completing the transaction at $7.30 per share. On Dec 22, another insider, Rizik Matthew, who serves as the Director of the company, bought 3,000 shares for $7.31 each. As a result, the insider paid 21,930 and bolstered with 566,602 shares of the company.

Valuation Measures:

As of this moment, Rocket’s Price-to-Earnings (P/E) ratio for their current fiscal year is 8.56, and their Forward P/E ratio for the next fiscal year is 372.50. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.11 while its Price-to-Book (P/B) ratio in mrq is 1.91.

Stock Price History:

Over the past 52 weeks, RKT has reached a high of $13.30, while it has fallen to a 52-week low of $5.97. The 50-Day Moving Average of the stock is 7.86, while the 200-Day Moving Average is calculated to be 8.16.

Shares Statistics:

RKT traded an average of 3.13M shares per day over the past three months and 3.07M shares per day over the past ten days. A total of 115.37M shares are outstanding, with a floating share count of 114.09M. Insiders hold about 5.90% of the company’s shares, while institutions hold 65.20% stake in the company. Shares short for RKT as of Oct 13, 2022 were 33.4M with a Short Ratio of 36.25M, compared to 30.63M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 28.92% and a Short% of Float of 29.18%.

Earnings Estimates

The firm’s stock currently is rated by 14 analysts. On average, analysts expect EPS of -$0.03 for the current quarter, with a high estimate of $0.01 and a low estimate of -$0.09, while EPS last year was $0.57. The consensus estimate for the next quarter is $0.01, with high estimates of $0.1 and low estimates of -$0.07.

Analysts are recommending an EPS of between $0.26 and -$0.01 for the fiscal current year, implying an average EPS of $0.11. EPS for the following year is $0.51, with 15 analysts recommending between $0.79 and $0.1.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 10 analysts. It ranges from a high estimate of $1.19B to a low estimate of $888M. As of the current estimate, Rocket Companies Inc.’s year-ago sales were $3.11B, an estimated decrease of -65.80% from the year-ago figure. For the next quarter, 10 analysts are estimating revenue of $1.09B, a decrease of -58.10% over than the figure of -$65.80% in the same quarter last year. There is a high estimate of $1.45B for the next quarter, whereas the lowest estimate is $792M.

A total of 11 analysts have provided revenue estimates for RKT’s current fiscal year. The highest revenue estimate was $6.68B, while the lowest revenue estimate was $5.74B, resulting in an average revenue estimate of $6.26B. In the same quarter a year ago, actual revenue was $12.91B, down -51.60% from the average estimate. Based on 12 analysts’ estimates, the company’s revenue will be $5.62B in the next fiscal year. The high estimate is $6.95B and the low estimate is $4.36B. The average revenue growth estimate for next year is down -10.10% from the average revenue estimate for this year.