What Analysts Are Saying About Rocket Companies Stock

In the last three months, 8 analysts have published ratings on Rocket Companies RKT, offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $13.88, a high estimate of $18.00, and a low estimate of $12.00. Marking an increase of 6.28%, the current average surpasses the previous average price target of $13.06.

Investigating Analyst Ratings: An Elaborate Study

The standing of Rocket Companies among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Rocket Companies. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Rocket Companies compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Rocket Companies's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Rocket Companies's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Rocket Companies analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Delving into Rocket Companies's Background

Rocket Companies is a financial services company that was originally founded as Rock Financial in 1985 and is currently based in Detroit. Rocket Companies offers a wide array of services and products but is best known for its Rocket Mortgage business. The company's mortgage lending operations are split between its direct-to-consumer lending, which sees borrowers accessing the company's lending arm directly through either its mobile app or website, and its partner network where mortgage brokers and other firms use Rocket's origination process to offer loans to their customers. The company has rapidly gained market share in recent years and will also be the largest mortgage servicer in the US following its acquisition of the Mr. Cooper Group.

Rocket Companies: A Financial Overview

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Rocket Companies displayed positive results in 3M. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 161.83%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Rocket Companies's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 1.97%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Rocket Companies's ROE stands out, surpassing industry averages. With an impressive ROE of 5.0%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Rocket Companies's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.14%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Rocket Companies's debt-to-equity ratio stands notably higher than the industry average, reaching 7.6. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.