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Trading in Rocket shares was halted several times on Tuesday.
Emily Elconin / Bloomberg
Rocket Companies
the shares rose 75% on Tuesday as the mortgage loan became the latest shortfall to hurt short sellers.
Trading in Rocket (ticker: RKT) shares was suspended three times on Tuesday due to volatility. Shares closed at $ 41.60 for a gain of 71.2%. The company is one of the shortest stocks on Wall Street, with 39.7% of the trading rates.
The rise in the stock comes on the heels of Rocket’s earnings slump in the fourth quarter last week. Rocket said it made new loans worth $ 107 billion during the quarter, which took the lead, asking for between $ 88 billion and $ 93 billion in origins. The mortgage company also declared a special dividend of $ 1.11 per share.
The company’s share was a popular topic
Twitter
and Reddit’s WallStreetBets, the message board in the middle of the GameStop frenzy, as of late.
“Rocket Mortgage – why is 38% of this company short selling?” Jim Cramer tweeted from CNBCs Crazy money shortly after 2pm Tuesday. “It’s a very good company, maybe it’s not your favorite when rates go up, but it’s run so well!”
Ihor Dusaniwsky, Managing Director of Forecasting Analysis at S3 Analytics, compared Rocket’s price and short selling activity to recent trading in
GameStop
(GME), MarketWatch reported earlier Tuesday.
Rocket was announced last summer in one of the biggest IPOs of the year. By Monday’s close of $ 24.30, the stock had gained about 35% with the price of $ 18. -to-consumer, should be valued as a mortgage institution – a company that is sensitive to fluctuating mortgage rates – or a technology company with potential for growth. .
According to FactSet, the 14 analysts covering Rocket shares have an average target price of $ 24.64 and an average rating of Hold.
With the appearance of higher mortgage rates – the average fixed interest rate of thirty years rose last week due to rising Treasury yields – Rocket Management said that demand in the housing market remains strong and that rates are still low enough to to justify refinancing for millions.
“The rates will go up and the rates will go down,” said Jay Farner, chief executive of Rocket Companies. “Our real focus is to ensure that we provide an experience that attracts customers and consumers in our funnel and allows us to grow market share.”
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