Insiders Have Been Scooping Up Shares Of This Beaten Down 2020 IPO

Zinger Key Points
  • Insider buying by company executives is often seen as a bullish sign for investors.
  • The transactions were part of Rule 10b5-1 trading plans that are scheduled in advance.

Two members of the Board of Directors of a beaten down mortgage related company have been buying shares of the company. Here’s what investors should know.

What Happened: Two Board of Directors members of Rocket Companies RKT have been actively buying shares of the company over the last month, including several purchases last week.

CEO Jay Farner and Board of Directors member Matthew Rizik each placed several purchases last week to buy additional shares of Rocket Companies stock. Here's a look at the transactions from last week. 

Jay Farner:

  • 6/21 29,700 shares at an average of $6.73
  • 6/22 28,600 shares at an average of $6.97
  • 6/23 27,900 shares at an average of $7.15
  • 6/24 26,000 shares at an average of $7.69

After the latest transactions, Farner owns 2,852,307 shares of Rocket stock. Farner also has a trust that owns 204,000 shares of Rocket Companies stock.

Matthew Rizik:

  • 6/21 3,200 shares at an average of $6.73
  • 6/22 3,100 shares at an average of $6.97
  • 6/23 3,000 shares at an average of $7.16
  • 6/24 2,800 shares at an average of $7.70

Rizik now owns 220,702 shares of Rocket stock after the latest filings.

Related Link: Rocket Q1 Earnings Highlights: Revenue And EPS Fall, Refinances And Cash Out Mortgages See Strength 

Why It’s Important: Insider buying by company executives is often seen as a bullish sign for investors. If executives are willing to invest their own money in the company, it often shows they think shares are undervalued at current levels.

In both cases, the transactions were part of Rule 10b5-1 trading plans that are scheduled in advance and allow insiders the option to buy or sell shares based on hitting certain prices or certain planned time periods. The plan allows the directors to avoid concerns of insider trading.

Farner’s 10b5-1 plan was adopted on Feb. 28, 2002 and Rizik’s 10b5-1 plan was adopted on May 11, 2022.

For more insider transactions, check out Benzinga’s insider trades page.

Price Action: Rocket Companies shares closed Friday at $7.74 versus a 52-week range of $6.26 to $20.84.

Photo: Courtesy of Michigan Municipal League on Flickr

Posted In: Insider TransactionsJay FarnerMatthew RizikNewsSmall CapInsider TradesTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.