Why Rocket Companies Is Trading Lower Today

Rocket Companies, Inc. RKT shares are trading lower after Wedbush analyst Henry Coffey downgraded the stock from Neutral to Underperform and lowered the price target from $14 to $12.

Wedbush analyst Henry Coffey noted 'A look at the consensus view on residential mortgage (the combined outlooks of Fannie, Freddie, and the MBA) suggests that over the next several years, we are heading into exactly the sort of market for which RKT's well designed direct-to- consumer (DTC) platform is not optimized: a dramatic fall off in refinance/cash-out refinance and slowing levels of purchase-related mortgages.'

Rocket Companies engages in the tech-driven real estate, mortgage, and eCommerce businesses in the United States and Canada. It operates in two segments, Direct to Consumer and Partner Network. The company's solutions include Rocket Mortgage, Amrock, Rocket Homes, Rocket Auto, and Rocket Loans.

Rocket's stock was trading about 2.5% lower at $16.89 per share on Tuesday. The stock has a 52-week high of $43 and a 52-week low of $16.22.