Key Takeaways From Rocket Companies Analyst Ratings

13 analysts have expressed a variety of opinions on Rocket Companies RKT over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $15.46, a high estimate of $20.00, and a low estimate of $11.50. This upward trend is apparent, with the current average reflecting a 6.33% increase from the previous average price target of $14.54.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Rocket Companies among financial experts is revealed through an in-depth exploration 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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Rocket Companies. This information offers 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: Analysts explore the dynamics of price targets, providing estimates for the future value of Rocket Companies's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Rocket Companies's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Unveiling the Story Behind Rocket Companies

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.

Financial Insights: Rocket Companies

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Rocket Companies displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 5.38%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Rocket Companies's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.1%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Rocket Companies's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 0.2%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Rocket Companies's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.01%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Rocket Companies's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 9.1.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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