Cracking The Code: Understanding Analyst Reviews For Rocket Companies

In the preceding three months, 10 analysts have released ratings for Rocket Companies RKT, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $11.05, along with a high estimate of $14.00 and a low estimate of $8.50. Surpassing the previous average price target of $10.38, the current average has increased by 6.45%.

Analyzing Analyst Ratings: A Detailed Breakdown

A clear picture of Rocket Companies's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Rocket Companies. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Rocket Companies compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Rocket Companies's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into Rocket Companies's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Get to Know Rocket Companies Better

Rocket Companies is a financial services company that was originally founded as Rock Financial in 1985 and is currently based in Detroit. Rocket Companies offers a wide array of services and products but is best known for its Rocket Mortgage business. The company's mortgage lending operations are split between its direct-to-consumer lending, which sees borrowers accessing the company's lending arm directly through either its mobile app or website, and its partner network where mortgage brokers and other firms use Rocket's origination process to offer loans to their customers. The company has rapidly gained market share in recent years and is now the largest mortgage originator in the U.S. as well as the servicer for more than 2 million loans.

Rocket Companies: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Rocket Companies's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -43.73%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Rocket Companies's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.62% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Rocket Companies's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.72% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Rocket Companies's ROA excels beyond industry benchmarks, reaching -0.05%. This signifies efficient management of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 12.85, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.