What Happened?
Shares of fintech mortgage provider Rocket Companies (NYSE: RKT) jumped 2.8% in the afternoon session after Jefferies initiated coverage on the company with a "Buy" rating and a $25.00 price target.
The investment firm viewed Rocket as a system designed to capture customers throughout their entire homebuying journey. Jefferies believed the shares did not yet reflect the enhanced earnings power and strategic positioning created by the company's 2025 acquisitions of Mr Cooper and Redfin. This positive sentiment followed another analyst action from the previous day, when Keefe, Bruyette & Woods raised its price target on the stock to $20 from $18, though it maintained a "Market Perform" rating.
After the initial pop the shares cooled down to $19.17, up 2.8% from previous close.
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What Is The Market Telling Us
Rocket Companies’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 2.8% on the news that an analyst at Keefe, Bruyette & Woods raised the company's price target to $20 from $18.
Despite the higher price target, the firm maintained its "Market Perform" rating on the shares. The analyst note stated that the firm was "reasonably constructive" on mortgage insurers, given the expectation that these companies would generate double-digit book value growth. The positive sentiment also came amid a backdrop of slightly improved housing affordability in 2025, which was supported by declining mortgage rates and growing incomes.
Rocket Companies is up 76.7% since the beginning of the year, but at $19.17 per share, it is still trading 9.4% below its 52-week high of $21.16 from September 2025. Investors who bought $1,000 worth of Rocket Companies’s shares 5 years ago would now be looking at an investment worth $887.45.
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