Shares of Rocket Co. are down almost 10% in Thursday’s pre-market trading, as the mortgage firm sees slightly slower loan growth in 3Q.
RKT) said it delivered impressive 2Q results, driven by strong consumer demand for home loans. 2Q revenues of $5.04 billion jumped by 437% on a year-over-year basis and by 268% from the 1Q. Adjusted net income of $2.86 billion during the reported period surged 995% from a year-ago.” data-reactid=”13″>Meanwhile, Rocket (RKT) said it delivered impressive 2Q results, driven by strong consumer demand for home loans. 2Q revenues of $5.04 billion jumped by 437% on a year-over-year basis and by 268% from the 1Q. Adjusted net income of $2.86 billion during the reported period surged 995% from a year-ago.
Rocket also recorded 126% growth year-on-year in closed loan origination volume, which amounted to $72.3 billion. Net rate lock volume was increased 170% to $92 billion year-on-year.
See RKT stock analysis on TipRanks).” data-reactid=”19″>Although, the company said that it continues to expect strong demand for home loans in 3Q, they look sluggish in comparison to 2Q growth. Rocket expects 3Q net rate lock volume to range between $93 billion and $98 billion, an increase of 98% to 108% year-over-year. The growth rate is slower than the 170% growth experienced in 2Q. Closed loan volume in 3Q is expected to increase between 105% to 112% year-on-year. In 2Q closed loan volume grew 126% year-over-year growth. (See RKT stock analysis on TipRanks).
Daniel Perlin initiated coverage on the stock with a Buy rating and a price target of $32 (2.2% upside potential). The analyst is positive on the company’s "proprietary technology-driven approach" that will allow it to capture market share in refinanced and new purchase loans, benefiting from a low interest rate environment and favorable demographics.” data-reactid=”20″>Just ahead of its 2Q results, RBC Capital analyst Daniel Perlin initiated coverage on the stock with a Buy rating and a price target of $32 (2.2% upside potential). The analyst is positive on the company’s “proprietary technology-driven approach” that will allow it to capture market share in refinanced and new purchase loans, benefiting from a low interest rate environment and favorable demographics.
price target of $28.27 implies downside potential of 9.7% to current levels.” data-reactid=”21″>Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 3 Buys and 8 Holds. With shares up 25.7% year-to-date, the average price target of $28.27 implies downside potential of 9.7% to current levels.
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