RKT - Rocket Companies stock drops 11% as Argus cuts to Hold on concerns over recent deals
- Rocket Companies ( NYSE: RKT ) tumbled 10.6% after Argus Research downgraded the stock to Sell from Hold on concerns over recent acquisitions and partnerships.
- Argus noted that Rocket ( RKT ) is the second largest U.S. mortgage originator, with ~5% of the overall market.
- "... the company broadened its business to include solar loans, personal loans and mortgage processing, as well as Rocket Auto and Rocket Money. To capture market share in a rising rate environment, Rocket ( RKT ) also formed partnerships with Morgan Stanley, Salesforce, and Banco Santander," analyst Kevin Heal said in a note to clients.
- "However, we believe these acquisitions and expansion into other financing and partnerships will not generate enough revenue to substantially move the needle," he cautioned.
- Wall Street analyst on average rate the firm Hold , in line with SA Quant's Hold rating .
- Shares of Rocket ( RKT ) declined 43.4% YTD.
For further details see:
Rocket Companies stock drops 11% as Argus cuts to Hold on concerns over recent deals