Rocket Companies (NYSE:RKT – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.16 earnings per share for the quarter, meeting the consensus estimate of $0.16, FiscalAI reports. Rocket Companies had a net margin of 2.78% and a return on equity of 4.30%. The firm had revenue of $2.76 billion for the quarter, compared to analysts’ expectations of $2.81 billion.
Here are the key takeaways from Rocket Companies’ conference call:
- Record market-share gains despite a difficult housing market: Purchase share rose to 6.2% and refinance share to 14.3%, while adjusted revenue reached $2.8 billion, adjusted EBITDA margin expanded to 28%, and adjusted EPS increased to $0.16.
- Redfin, servicing, and AI are strengthening the platform: Redfin mortgage leads more than doubled year over year, its mortgage attach rate reached 47%, and loan officers are serving nearly 40% more clients with improved conversion. Rocket also said Voice AI handled more than one million servicing calls, resolving over half without specialist intervention.
- Integration synergies and financial flexibility are ahead of plan: Rocket realized $100 million of annualized Mr. Cooper expense synergies in the quarter and now expects approximately $500 million in total savings, including $100 million above its original target. Liquidity increased to $11.2 billion, while net corporate leverage fell to 0.9 times.
- Near-term housing conditions remain weak: Rising mortgage rates and worsening affordability led management to expect the third-quarter mortgage market to contract sequentially, with adjusted revenue guided to $2.5 billion-$2.7 billion. The company said the expected 2026 housing recovery has not materialized.
Rocket Companies Trading Down 4.6%
Shares of RKT stock traded down $0.64 during trading hours on Thursday, hitting $13.22. The company had a trading volume of 39,510,087 shares, compared to its average volume of 29,195,025. The company has a debt-to-equity ratio of 1.13, a current ratio of 4.37 and a quick ratio of 4.37. The stock has a market capitalization of $37.39 billion, a PE ratio of 264.32 and a beta of 2.19. The company’s fifty day moving average is $14.04 and its 200 day moving average is $15.55. Rocket Companies has a fifty-two week low of $12.17 and a fifty-two week high of $24.36.
Rocket Companies News Roundup
- Positive Sentiment: Rocket reported Q2 2026 total revenue of $2.78 billion, adjusted revenue of $2.76 billion, GAAP net income of $229 million and adjusted net income of $441 million. The results provide a fundamental positive, although the release did not include additional guidance in the available details. Rocket Companies Announces Second Quarter 2026 Results
- Positive Sentiment: U.S. starter-home affordability continued to improve, with the income needed to afford a typical starter home declining 1.5% year over year for an eighth consecutive month. This could gradually support purchase activity and mortgage demand. Redfin Reports Affordability For U.S. Starter Homes Improves Slightly Faster Than Overall Market
- Neutral Sentiment: Unusually large options activity was reported in RKT, potentially signaling heightened institutional positioning or expectations for increased volatility, but the direction of the trade was not provided. Rocket Companies Target of Unusually Large Options Trading
- Neutral Sentiment: RBC Capital maintained a Hold rating ahead of the earnings report, suggesting limited conviction that near-term upside would outweigh housing and valuation risks. RBC Capital Sticks to Their Hold Rating for Rocket Companies
- Negative Sentiment: Pending home sales fell 3.7% week over week to a five-month low as mortgage rates reached their highest level in nearly a year. Lower transaction volume can pressure Rocket’s mortgage origination and related real-estate businesses. Redfin Reports Pending Home Sales Sink to 5-Month Low As Mortgage Rates Rise
- Negative Sentiment: RKT is declining alongside Opendoor and other real-estate stocks amid concerns about the home-sales slump. Although affordability is improving modestly, the typical home still requires income well above that of the median household, keeping demand constrained. Opendoor Technologies Sinks, Rocket Companies Falls Amid Home-Sales Slump
Institutional Trading of Rocket Companies
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD boosted its stake in shares of Rocket Companies by 11,636.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 26,189,869 shares of the company’s stock valued at $507,037,000 after purchasing an additional 25,966,725 shares during the period. Morgan Stanley boosted its position in Rocket Companies by 461.2% in the 4th quarter. Morgan Stanley now owns 27,009,279 shares of the company’s stock valued at $522,900,000 after buying an additional 22,196,782 shares during the period. State Street Corp grew its stake in shares of Rocket Companies by 323.9% in the fourth quarter. State Street Corp now owns 20,688,336 shares of the company’s stock worth $400,526,000 after acquiring an additional 15,807,776 shares in the last quarter. ValueAct Holdings L.P. increased its position in shares of Rocket Companies by 55.1% during the fourth quarter. ValueAct Holdings L.P. now owns 39,380,652 shares of the company’s stock worth $762,409,000 after acquiring an additional 13,985,025 shares during the period. Finally, Durable Capital Partners LP acquired a new stake in shares of Rocket Companies in the third quarter valued at $213,010,000. Hedge funds and other institutional investors own 4.59% of the company’s stock.
Analyst Upgrades and Downgrades
RKT has been the topic of a number of analyst reports. Benchmark initiated coverage on shares of Rocket Companies in a research note on Monday, June 29th. They set a “buy” rating and a $21.00 target price on the stock. Morgan Stanley raised shares of Rocket Companies from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $18.00 to $19.00 in a research note on Thursday, July 16th. Stephens began coverage on shares of Rocket Companies in a research report on Thursday, April 23rd. They set an “overweight” rating and a $22.50 price target on the stock. BTIG Research reiterated a “neutral” rating on shares of Rocket Companies in a report on Tuesday, June 16th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $20.00 price objective on shares of Rocket Companies in a research report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $20.73.
Check Out Our Latest Analysis on RKT
About Rocket Companies
Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.
The company’s core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.
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