Now trading at a price of $11.34, Rocket has moved 2.8% so far today.
Rocket returned losses of -22.8% last year, with its stock price reaching a high of $21.38 and a low of $10.78. Over the same period, the stock underperformed the S&P 500 index by -47.3%. AThe company's 50-day average price was $14.14. Rocket Companies, Inc., a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. Based in Detroit, MI, the Large-Cap Finance company has 14,700 full time employees. Rocket has not offered a dividend during the last year.
The Company's Revenues Are Declining:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,210 | $5,069 | $15,650 | $12,914 | $5,838 | $3,799 |
| Interest Income (M) | $102 | $116 | $84 | $169 | $184 | $121 |
| Operating Margins | 15% | 18% | 61% | 48% | 13% | -11% |
| Depreciation & Amort. (M) | $77 | $75 | $74 | $75 | $94 | $110 |
| Free Cash Flow (M) | $1,367 | -$1,088 | -$1,784 | $7,626 | $10,730 | $50 |
| CAPEX (M) | $64 | $11 | $106 | $118 | $93 | $60 |
Rocket does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $0.66, the company has a forward P/E ratio of 21.4. In comparison, the average P/E ratio for the Finance sector is 20.04. Furthermore, Rocket is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.52 is higher than the sector average of 1.86.
Rocket Has an Average Rating of Hold:
The 14 analysts following Rocket have set target prices ranging from $11.5 to $18.0 per share, for an average of $14.57 with a hold rating. The company is trading -22.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Rocket has an above average percentage of its shares sold short because 11.3% of the company's shares are sold short. Institutions own 70.9% of the company's shares, and the insider ownership rate stands at 6.75%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $137,029,042.
