Rocket Companies' stock declines amid market strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2024
0mins
Should l Buy RKT?
Source: NASDAQ.COM
Rocket Companies Inc's stock fell by 5.19% as it crossed below its 5-day SMA, indicating a bearish trend.
Despite the broader market strength, with the Nasdaq-100 and S&P 500 both up, Rocket's stock decline is attributed to sector rotation as investors shift focus to other opportunities in the market. The recent Super Bowl ad campaign with Redfin, while highlighting community values, has not translated into immediate positive market sentiment for Rocket, reflecting the challenges the company faces in a competitive landscape.
This decline may raise concerns among investors about Rocket's ability to maintain its market position, especially as the housing market dynamics continue to evolve. The emphasis on community in their advertising may resonate in the long term, but immediate stock performance suggests a need for stronger financial results to regain investor confidence.
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Analyst Views on RKT
Wall Street analysts forecast RKT stock price to rise
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 18.370
Low
18.00
Averages
22.18
High
25.00
Current: 18.370
Low
18.00
Averages
22.18
High
25.00
About RKT
Rocket Companies, Inc. is a fintech platform including mortgage, real estate and personal finance businesses: Rocket Mortgage, Redfin, Mr. Cooper, Rocket Homes, Rocket Close, Rocket Money, and Rocket Loans. The Company's full suite of products empowers its clients across financial wellness, personal loans, home search, mortgage finance, title and closing. Through these businesses, it delivers client solutions leveraging its Rocket platform. It operates in two segments: Direct to Consumer and Partner Network. In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage digitally and/or with the Company's mortgage bankers. It provides client service and leverages its brand to strengthen its wholesale relationships, through Rocket Pro, as well as enterprise partnerships, both driving growth in its Partner Network segment. The Company's capabilities span the entirety of homeownership, such as home search, financing, title, closing and servicing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Movements: Berkshire Hathaway disclosed in a regulatory filing that it reduced its stake in Apple in Q4 while establishing a position in the New York Times, which saw its shares jump over 3% in after-hours trading, reflecting renewed interest in media stocks.
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- Reduction Strategy: Third Point reduced its stake in PG&E from 50.1 million shares to 34.3 million shares, indicating a cautious outlook on the company's prospects, which may impact its future earnings performance.
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See More
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- Stock Performance: Although Rocket shares were marginally lower in Q4 2025, they surged nearly 72% over the year, reflecting optimistic market expectations for future growth, despite a 4% decline at the start of 2026.
- Analyst Expectations: According to analysts polled by LSEG, while most maintain a hold rating on Rocket, the average price target suggests more than 15% upside potential, indicating market anticipation for a rebound.
- Other Investment Moves: Cooperman also more than doubled his stake in Occidental Petroleum to over $28 million and increased his position in KBR by over 20%, raising its value above $85 million, while completely exiting his position in ArriVent Biopharma, showcasing a dynamic adjustment in his investment portfolio.
See More
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- Regulatory Policy Changes: Bowman proposed removing the requirement to deduct mortgage servicing assets from regulatory capital while maintaining a 250% risk weight on those assets, which could alter banks' capital structures and change the risk management approach for mortgage loans.
- Competitive Landscape Changes: With these regulatory adjustments, non-bank lenders like Rocket Mortgage and United Wholesale Mortgage may face increased competitive pressure from traditional banks, forcing them to defend their margins and potentially leading to lower market prices for consumers.
- Market Outlook: The new regulatory framework could incentivize banks to re-enter the mortgage market more aggressively, particularly for loans sold to or guaranteed by government-sponsored entities like Fannie Mae and Freddie Mac, thereby reshaping the competitive dynamics of the real estate market and impacting consumer loan costs.
See More
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- Increased Buyer Leverage: With sellers outnumbering buyers by a record 47%, buyers now possess greater negotiating power, reducing the necessity for cash offers to secure homes compared to the competitive pandemic market.
- FHA Loan Usage Falls: The share of homebuyers using FHA loans dropped to 14.4% in December, the lowest in four years, reflecting the challenges faced by low-to-moderate-income buyers in a high-cost housing market.
- Rise in Conventional Loans: The proportion of mortgaged homebuyers using conventional loans increased to 78.6% in December, up from 78.2% a year prior, suggesting a preference for traditional financing amidst rising housing costs.
See More
