COOP Overview

Investigation Announcement: Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Mr. Cooper Group Inc. and its executives, urging affected investors to reach out for assistance.

Merger Details: The merger between Mr. Cooper and Rocket is projected to generate significant revenue and cost savings, with claims of immediate earnings accretion for Rocket post-merger.

FTC Lawsuit Impact: The Federal Trade Commission has filed a lawsuit against Zillow and its subsidiary Redfin, alleging anti-competitive practices that could affect the market dynamics relevant to the merger.

Stock Price Decline: Following the merger's completion on October 1, 2025, Rocket's share price has experienced a notable decline, raising concerns among investors.

Investigation of Securities Claims: Girard Sharp LLP is investigating potential securities claims for former investors of Mr. Cooper Group Inc. following its acquisition by Rocket Companies, Inc. on October 1, 2025, amid concerns over possible misrepresentations in the merger's offering materials.

Merger Financial Projections: The merger is projected to generate significant financial benefits, including $100 million in additional pre-tax revenue and $500 million in cost savings, while also being immediately accretive to Rocket's earnings per share.

FTC Lawsuit Impact: Just before the merger, the FTC filed a lawsuit against Zillow and Redfin, alleging anti-competitive practices that could affect Rocket's market position, as Redfin is a subsidiary of Rocket.

Decline in Share Price: Since the merger's completion, Rocket's share price has dropped by 14%, prompting Girard Sharp to focus on whether the merger's offering materials accurately represented the financial conditions of both companies.

Merger Impact on Stock: Rocket Companies, Inc. (RKT) stock is facing pressure post-merger with Mr. Cooper Group Inc. (COOP), with a 15% drop since the deal closed, as investors assess cost synergies against a slowdown in mortgage origination.

Analyst Outlook: BTIG analyst Eric Hagen maintains a Buy rating on RKT, citing an attractive entry point after a 25% decline from its September high, and anticipates that lower interest rates could stabilize earnings and increase loan volume.

Mr. Cooper's Sale Completion: Mr. Cooper's last day of trading occurred after its sale to Rocket Companies was approved by shareholders on September 3, as noted in a Nasdaq delisting notice.

Shareholder Compensation: Under the sale agreement, Mr. Cooper shareholders will receive 11 shares of Rocket Companies for each share of Mr. Cooper stock they hold, along with a potential $2 per share dividend before the transaction.

Rocket Companies' Growth Potential: Rocket Companies is positioned to capitalize on the $2 trillion mortgage origination market and aims to create an all-in-one real estate platform, enhancing customer experience through automation and recent acquisitions like Redfin and Mr. Cooper.

PayPal's Turnaround Strategy: PayPal's management is focused on improving efficiency and pursuing growth initiatives, including unifying its platforms and expanding into the in-person payments market, despite current stock valuation concerns and modest revenue growth.

Importance of Market Capitalization: Market capitalization provides a true comparison of a company's value, allowing investors to make informed decisions rather than relying solely on stock prices.

Impact on Investment Strategies: A company's market cap influences its classification within size tiers, affecting its inclusion in indices and the interest of mutual funds and ETFs, which can impact stock performance.