RKT Stock Price and News: Rocket Companies Inc suffers hangover from Tuesday, RBC downgrades.

• NYSE:RKT shares giving up gains on Wednesday after stellar Thursday rally.
• Rocket Companies gained 70% on Tuesday as retial traders fizzled over the stock.
• RKT shares have been downgraded at RBC on Wendsday.

Update 2 March 3: RKT shares understandably gave up some ground on Wednesday, as Tuesday had seen stellar gains. RBC downgraded RKT from outperform to sector perform and put a $30 price target on the stock. At the time of writing RKT shares are trading at $37.45 a loss of ten percent. Mortgage data from the US had also seen refinancing deals slow as interest rates rose.

Update March 3: First it was the earnings, later the short-squeeze. Rocket Companies Inc (NYSE: RKT) has closed Tuesday's trading session with a spectacular rise of 71% to $41.60. On its way, it hit a new 52-week peak of $43, which is also a record high.  Retail traders on WallStreetBets have been actively discussing hoarding RKT stock in order to trigger a short squeeze. According to the firm's data, short interest has hit $1.21 billion. Some on WSB are suggesting a target price of $60. However, premarket data is pointing to a slide of over 8% on Wednesday. 

NYSE:RKT finally had the blowout quarter early investors have been waiting for since the mortgage lending company debuted on Wall Street back in August of 2020. On Friday, despite another rocky day for the broader markets, Rocket Companies added 9.80% to close the trading session at $21.85. During intraday trading, Rocket surged as high as $23.55, which is one of the highest price levels since September, shortly after the stock began trading publicly. Investors who bought into the mortgage leader at its IPO have been disappointed so far as the stock is still trailing the S&P 500 by nearly 25% over the past 52-weeks. 

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Rocket reported a strong quarterly bump on Thursday as it revealed a year-over-year rise in revenues of 144% to $4.2 billion, as well as an incredible 277% rise in net income. The results blew Wall Street’s expectations out of the water and the stock reacted appropriately as investors bought back into a stock that had been trading sideways for the past six months. Rocket Companies enjoyed a 111% rise in loan originations as the housing market has been a surprising winner during the COVID-19 pandemic. 

RKT stock forecast

RKT also announced a special dividend for its shareholders as the company begins to re-allocate its generous income holdings. The dividend will be paid out as $1.11 per share, which equates to a very nice 5% yield. Rocket Companies also said that they would be using much of its cash to further grow its software platform as the mortgage landscape shifts to an increasingly digital experience. 

Previous updates

Update, March 2: Rocket Companies Inc (NYSE: RKT) is set to extend its upwards trajectory on Tuesday, adding another $1 or 7.41% according to premarket trading. Shares of the financial firm launched to higher ground on Monday after reporting robust earnings. Moreover, hopes for quick recovery in the US – led by vaccines and stimulus from Uncle Sam – raise hopes of even better activity later on.