Get started
RRR

Rocket Companies, Inc.

No trades
See on Supercharts
Overview News
Ideas
Discussions Seasonals

RKT trade ideas

$RKT New Strategy May BackfireThe nation’s largest retail home lender Rocket Companies (NYSE: RKT) introduced ONE+, a new 1% down home loan program. That may be a recipe for disaster for RKT, as it encourages more people to buy homes and increases the risk of these people not being able to pay their mortgages, especially since the program is aimed at low-income Americans. If enough people can not keep up with the mortgage payment and default, it may lead to RKT stock plummeting as the situation resembles that of the 2008 financial crisis which may lead to RKT going bankrupt. RKT Fundamentals RKT just announced its new program ONE+, which will only require home buyers to make a downpayment of 1% instead of the minimum 3%. The other 2% percent needed to reach the required threshold for conventional loans will be paid by RKT. While the 1% down payment will give more Americans access to home ownership, it also increases the risk of more people defaulting. ONE+ will completely eliminate the monthly mortgage insurance fee for the client – which is traditionally required if the buyer places less than 20% down on their purchase. This all seems good for the customers, but it will put a huge strain on RKT’s financials, as RKT has removed one source of its revenue in the mortgage insurance fee and added the burden of paying the remaining 2% to reach the conventional loan requirements of 3% in down payment. RKT incentivizing low to moderate-income Americans to own homes is similar to what happened in the 2008 financial crisis when lenders tried to incentivize low-income Americans to become homeowners. Another similarity is that existing home sales have declined to levels not seen since 2008 in December 2022. What makes matters worse is that the median house price has increased more than 30% since 2020. That, combined with the fact that Americans’ credit card balances have increased again after plummeting during the pandemic due to the stimulus checks, indicates that people will struggle to keep up with their mortgage payments, and some people will have to default at some point. If enough people defaulted, that would mean that RKT may go bankrupt. RKT Financials In its Q1 2023 report, RKT’s assets increased 5% QoQ from $20 billion to $21 billion, and its cash and cash equivalents increased 23% QoQ from $722 million to $893 million. RKT’s total liabilities increased by 12% QoQ from $11.6 billion to $13 billion. Revenue also decreased 75% YoY from $2.6 billion to $0.666 billion. Operating costs decreased almost 37% from $1.6 billion to $1 billion, which contributed to the operating loss increase of 141% YoY from $1 billion in operating income to $0.415 billion in operating loss, which amounted to a net loss of $411 million – a 118% increase YoY. Technical Analysis RKT stock’s trend is neutral with the stock trading in a sideways channel between $8 and $8.43. Looking at the indicators, the stock is trading below the 200, 50, and 21 MAs which are bearish indications. Meanwhile, the RSI is oversold at 27 and the MACD is bearish. As for the fundamentals, RKT stock just witnessed a catalyst in the announcement of its new ONE+ program. Since this program is extremely risky for RKT in the current economic situation, bankruptcy is a real risk for the company if the macro environment does not improve. As a result, shorting RKT could prove to be a profitable decision. RKT Forecast RKT is making a risky business move to incentivize people to start buying homes again, and it’ll probably backfire. The current economic climate of increasing debt and rising interest rates is a dangerous time to introduce the new 1% down payment program as risks of customers defaulting increase, which may see RKT going bankrupt. RKT is a stock to avoid as it faces too many risks.
NYSE:RKTShort
by Penny_Stocks_Today
Rocket Companies (NYSE: $RKT) Looks Poised For A Reversal! 🚀Rocket Companies, Inc. 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, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to national car rental and online car purchasing platforms; and Rocket Loans, an online-based personal loans business. Its solutions also include Core Digital Media, a digital social and display advertiser in the mortgage, insurance, and education sectors; Nexsys, a fintech company, which offers a suite of essential tech solutions for mortgage origination and closing processes through digitization and automation; Lendesk, a technology services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; and Edison Financial, a digital mortgage startup. In addition, the company originates, closes, sells, and services agency-conforming loans. Rocket Companies, Inc. was founded in in 1985 and is headquartered in Detroit, Michigan. Rocket Companies, Inc. is a subsidiary of Rock Holdings, Inc.
NYSE:RKTLong
by DEXWireNews
1
Roket Companies USA Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series Focus: Worldwide By Sun Storm Investment Research & NexGen Wealth Management Service A Profit & Solutions Strategy & Research Trading | Investment | Stocks | ETF | Mutual Funds | Crypto | Bonds | Options | Dividend | Futures | USA | Canada | UK | Germany | France | Italy | Rest of Europe | Mexico | India Disclaimer: Sun Storm Investment and NexGen are not registered financial advisors, so please do your own research before trading & investing anything. This is information is for only research purposes not for actual trading & investing decision. #debadipb #profitsolutions
NYSE:RKT
by Sunstorminvest
RKT: Could This Be The End For The Bears?Nov-04-21, the Rocket Companies reported for third-quarter 2021 revenue of $3.16 billion, beating a consensus of $2.93 billion. Quarterly earnings of 57 cents per share beat the analyst consensus estimate of 48 cents by 18.75% , (according to a Yahoo article) The company also exceeded the top end of its closed loan volume and margin guidance. The third quarter marked the second consecutive record purchase quarter for the company. The company has $88 billion in mortgage origination closed loan volume in the quarter. Oct-29-21, Rocket Mortgage, a division of Rocket Companies (NYSE: RKT) has teamed with Salesforce (NYSE: CRM ) in a partnership that will make the Detroit-based company's mortgage origination technology available to banks, credit unions and other financial institutions through Salesforce Financial Services Cloud. The company has a Market Cap is 32.32B. It has performed very well also during the previous quarters. The last two quarters were a bit lower than then expected profit, but anyway the company was with very good profits and it keeps expanding in the market. During the beginning of the year the company was also support from the Reddit forum WSB and was classified from the market as a "meme stock". Anyway my purpose of the analysis it is not related with that part but that gives extra value as well. We all need support to move the price higher:) From the technical perspective I think that the stock just completed a "Falling Wedge" pattern and broke out. In my personal opinion $15 was the low for this stock and from here we should begin to see it moving higher. Targets: $19.30 $22.3 Thank you and Good Luck!
NYSE:RKTLong
by KlejdiCuni
21