Rocket Companies ($RKT), who owns Rocket Mortgage, is a slam dunk

Rocket Companies ($RKT), who owns Rocket Mortgage, is a slam dunk

Rocket Companies (ticker RKT) is Rocket Mortgage, the online mortgage broker launched by Quicken Loans in 2015.

RKT had their Q4 earnings released today, and as of market close were trading at $19.90, and $20.90 as of this post during AH.

Last month, Rocket announced their new online National Mortgage Broker Directory that allows/assists people to find an in-person mortgage agent to help them purchase their home. It’s an alternative to fill the need of the people who prefer in-person contact over filling out overwhelming checkboxes and blanks online.

First, let me mention that RKT has been shorted like CRAZY and as of the last Short Interest report on Feb 9th, RKT has AT LEAST 31.32% shares short. That makes it a great target for a (probably small) short squeeze.

Before you get too excited and start treating this like a certain Stock from another Sub, read on about why this is a fantastic investment even without the potential short squeeze...

Rocket’s Q4 results COMPLETELY knocked it out of the park with $4.8 billion Adjusted Revenue (up 162% YOY) and $2.3 billion Adjusted Income (up 350% YOY). See Yahoo article here

They’re also now adding a dividend of $1.11/share, announced today with their earnings.

RKT has been trading way under an average PT of $24.68 ($18-$35) by 14 analysts on Yahoo! Finance way before these new earnings results, so it was already trading f at a discount.

For the better part of the last 6 months it has traded consistently between $19-$24. It’s primed for a jump even without any of this news.

TL;DR- buy RKT. It’s cheap, is massively shorted and has GREAT financials. And a dividend announced today.

Submitted February 25, 2021 at 06:15PM by MasterTmax https://ift.tt/3pWPZ6A