13 Analysts Assess Rocket Companies: What You Need To Know

Rocket Companies RKT underwent analysis by 13 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $14.42, a high estimate of $19.00, and a low estimate of $10.50. A 6.97% drop is evident in the current average compared to the previous average price target of $15.50.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Rocket Companies. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Rocket Companies. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Rocket Companies compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Rocket Companies's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Rocket Companies's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious 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.

Understanding the Numbers: Rocket Companies's Finances

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 Challenges: Rocket Companies's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -47.77%. This indicates a decrease in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Rocket Companies's net margin is impressive, surpassing industry averages. With a net margin of -3.62%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Rocket Companies's ROE excels beyond industry benchmarks, reaching -3.36%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Rocket Companies's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.09%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Rocket Companies's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 10.11.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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