Although mortgage rates rose in the last week of February to the highest level since last August, Rocket told investors that “it expected its record origination volume in the fourth quarter would mostly hold steady into the first quarter of 2021,” noted the Journal. That increase is not hurting Rocket’s business. Mortgage originators are generally hurt by rising mortgage rates since it means that fewer people might want to refinance or buy a home. The case to bet that Rocket stock will go down hinges on rising mortgage rates and a high valuation. Rising interest rates could slow demand for mortgages The average price target represents a 3.46% increase from the last price of $24.30,” noted TipRanks. The average price target is $25.14 with a high forecast of $33.00 and a low forecast of $19.00. “Based on seven analysts offering 12 month price targets for Rocket Companies in the last 3 months. While analyst price targets are hardly scientific, the average target of $25.14 is slightly above where Rocket closed on March 1. As the Journal noted Rocket will pay such shareholders “a new special and non-recurring dividend of $1.11 per share which will total about $2.2 billion.” Trading below its price target Rocket made so much money that it’s issuing a special dividend which will be paid to stockholders as of March 9. Rocket’s per share earnings of $1.09 beat by 22 cents while revenue for the quarter at $4.78 billion - topped forecasts by $80 million, according to .įor the current quarter, Rocket forecasts what the Journal dubbed “better-than-expected guidance.”Īs CFO Julie Booth said, Rocket expects “closed loan volume of $98 billion to $103 billion compared to $51.7 billion in the first quarter of 2020 net rate lock volume of $88 billion to $95 billion, up from $56 billion in the first quarter of 2020 and gain-on-sale margins of 3.6% to 3.9% compared to 3.25% in the first quarter of 2020,” according to Rocket’s Fourth Quarter Earnings Call Transcript. Its fourth quarter results exceeded estimates.
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