Rocket Companies Soars 6% In Friday Premarket As Activist Investor ValueAct Reveals New Position, Calls RKT A 'Sleeping Giant' In Early Innings

As ValueAct Holdings, LP. buys a fresh stake in Rocket Companies Inc. (NYSE:RKT), Andrew Left‘s Citron Research endorses the move, calling the investment a “multi-year story.”

What Happened: The co-CEO and CIO of ValueAct, Mason Morfit, added 6.728 million shares worth $81.213 million to its portfolio during the first quarter, according to its 13F filings.

The company represented 1.8% of ValueAct’s total holdings as of the first quarter.

However, Rocket’s recent SEC filing dated May 15 showed that ValueAct held 15.125 million shares in the company, representing 9.9% of the total stake.

Citron Research cited this in an X post and lauded the co-CEO, Morfit, for being the “most strategic, long-term thinkers” and stating that he is one of the minds who reshaped Microsoft Corp. (NASDAQ:MSFT) from the boardroom.

“When someone like that sees $RKT as a compounder, it's not about quarterly noise—it's the start of a multi-year story,” said Citron’s post.

Highlighting Morfit’s comments, it added, “The CEO called Rocket a ‘sleeping giant’ in its ‘early innings’ yesterday,” the post added.

See Also: Warren Buffett Shows How Patience Pays: 98% Of His $160 Billion Wealth Came After Turning 65, Thanks The Power Of ‘Compound Interest’

Why It Matters: Apart from Rocket Companies, ValueAct’s 13F filings showed 13 more companies that the firm held a stake in, after the first quarter. Here is a list of all its holdings.

Price Action: Shares of RKT rose 1.35% on Thursday. The stock was up 17.70% on a year-to-date basis, but 8% lower over a year. It was trading nearly 6% higher during the premarket session on Friday.

Benzinga Edge Stock Rankings shows that RKT had a stronger price trend over the short and the medium term but a weaker trend over the long term. Its momentum ranking was moderate at the 37.21th percentile. You can check the details of other metrics over here.

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