Rocket Companies Stock Rises from Record Low

Yesterday, the company announced its acquisition of Truebill for nearly $1.3 billion in cash

Deputy Editor
Dec 21, 2021 at 12:55 PM
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Rocket Companies Inc (NYSE:RKT) is in the spotlight, after yesterday announcing that it will acquire personal financial app Truebill for nearly $1.3 billion in cash. RKT closed last session 6.3% lower following the news, hitting a record low of $14.07. This negative price action also pushed the stock below support at the $15 level, which had served as a floor for pullbacks since early October. Today, however, the stock is recovering some of those losses -- up 2.6% to trade at $14.84 at last check. Year-to-date, the equity is down 23.2%. 

RKT Dec21

Analysts are bearish on RKT, with the exception of one "strong buy" rating, as the other nine out of 10 carry a "hold" or worse. The 12-month consensus price target of $17.89 is a 20% premium to current levels, however, the stock had been hanging around that region since May before its recent slide. 

The options pits are much more optimistic, per Rocket stock's 50-day call/put volume ratio of 6.89 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 83% of readings in its annual range, show long calls being picked up at a faster-than-usual rate.

Meanwhile, short interest makes up 9.2% of the stock's available float. In other words, it would take nearly three days to buy back these bearish bets, at Rocket stock's average pace of trading. 

 

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