RKT Stock – Rocket profits, Lineage deals and more news of the week
The news: Despite rising interest rates, a red-hot housing market continues to pay significant dividends for Detroit-based Rocket Companies Inc., the country’s largest mortgage overall mortgage lender. Dan Gilbert-owned Rocket Companies (NYSE: RKT), which includes Rocket Mortgage, Rocket Auto and a host of other financial firms, on Wednesday reported first quarter total net income of nearly $2.8 billion on revenue of approaching $4.6 billion — a profit margin of approximately 60 percent.
Why it matters: Fueled by rock-bottom interest rates leading to a refinancing boom, and a restless population stuck at home looking for new housing options during the pandemic, 2020 made for a red-hot year for the mortgage sector. Still, Wall Street didn’t smile on Rocket — its stock price fell after the announcement, nearing its 52-week low on Friday.