RKT Stock – Why Rocket Companies (RKT) Stock Slumped on Friday – May 7, 2021
Shares of mortgage lender Rocket Companies (RKT – Free Report) closed down over 5% on Friday as investors and analysts continue to digest the company’s Q1 earnings results. The stock fell 16.6% yesterday.
Revenue soared 236% year-over-year to $2.6 billion, adjusted net income spiked 170% to $1.8 billion, and closed loan origination increased by 100% to $103.5 million. Rocket also posted strong growth in its title insurance, property valuation, and settlement services.
Despite these impressive results, RKT’s guidance came in softer than expected. Management anticipates closed loan volume between $82.5 billion to $87.5 billion, representing an 18% sequential decline at the midpoint. Analysts are slashing their price targets as a result. Both RBC analyst Daniel Perlin and Jeffries analyst Ryan Carr cut their PT to $26 from $30; Perlin also reduced his full-year adjusted sales and earnings estimates.
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