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Jim Cramer, Rocket CEO Jay Farner Talk Record Quarter: Stock Dip 'Frankly Makes No Sense'

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Jim Cramer, Rocket CEO Jay Farner Talk Record Quarter: Stock Dip 'Frankly Makes No Sense'

Rocket Companies Inc (NYSE: RKT) traded lower in Wednesday's session despite reporting strong third-quarter earnings. Closed origination volume increased 122% year-over-year to a record $89 billion.

The parent company of Rocket Mortgage and Quicken Loans reported adjusted revenue of $4.74 billion for the third quarter, which was up 163% year-over-year. Adjusted earnings per share came in at $1.21, beating the consensus estimate of $1.07.

“We were doing about $15 billion a month at the start of the year and in October we did over $30 billion in one month in closed volume, and that's just that technology combined with the great brand we've got,” Rocket Companies CEO Jay Farner said Wednesday night on Jim Cramer's "Mad Money" show.

CEO Weighs In: Cramer has long been a big fan of Dan Gilbert and the company he has built over the years into the nation's largest mortgage lender. Cramer said Rocket Companies had an "impressive beat" and was surprised the stock fell in today's session.

"That frankly makes no sense to me," Cramer said of the stock's 2.5% dip. Farner agreed.

"You've got me puzzled too on what's going on with the stock," said Farner. "We're super excited about what we're doing over here."

See Also: Analysts React To Rocket Companies Q3 Earnings: 'Differentiated Tech-Driven Platform'

Perfect Stock Right Now? Cramer recently said Rocket Companies might be a “perfect stock to own" right now because of low interest rates, the migration of people moving from the city to the suburbs and Joe Biden's election win.

"Now home is where you go to school, home is where you go to work," Cramer said Wednesday night. "The home has become an essential value proposition. Not as an investment, but as a way of life and that means Americans want to get mortgages and buy homes more than I've ever seen."

Farner said Rocket plans to capture 25% of the mortgage market by 2030, citing partnerships recent partnerships with Realtor.com, Intuit and an upcoming partnership with a "major large financial institution" next year.

RKT Stock Price: Rocket's stock closed at $21.06 per share.

 

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