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RKT · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Rocket Companies, Inc. (RKT) stock moving?
RKT rallied about 32% from $11.49 (Oct 26) to a $15.19 close on Nov 9, following Q3 results that showed a sharp profit swing: GAAP net income of $709M versus a $124M loss a year earlier, adjusted EBITDA of $748M, and year-to-date adjusted EBITDA of $2.25B versus $690M. Management said the company gained share in purchase and refinance and reached its highest profitability margin in nearly five years, even as mortgage rates hit a three-year high. Against that, adjusted revenue of $2.57B missed the $2.64B estimate, and Q4 sales guidance of $2.10B-$2.30B fell well short of the $2.61B consensus. Analysts have not followed the rally: RBC cut its target to $14 and JP Morgan kept a Neutral rating with a $13 target, both below the recent highs. On Nov 10 the stock fell 4.9% to $14.45 on 31.9M shares, with the low at $14.18 and the close still above both targets. Housing data is also mixed, with Redfin reporting home-sale prices down year over year for three straight weeks. The earnings strength supports the long-term view, while the guidance miss, analyst targets below the price and the reversal weigh on the near and middle term.
News behind the analysis
- Rocket Companies Reports Third Quarter 2026 Financial ResultsQ3 2026 total revenue was $3.28B and GAAP net income was $709M, versus a $124M loss a year earlier. Adjusted EBITDA reached $748M.
- Rocket Companies Sees Q4 Sales $2.100B-$2.300B vs $2.610B EstQ4 sales guidance of $2.10B-$2.30B sits well below the $2.61B consensus estimate.
- Rocket Companies Q3 Adj. EPS $0.15 Beats $0.14 Estimate, Sales $2.574B Miss $2.641B EstimateAdjusted EPS beat by one cent, but adjusted sales of $2.574B missed the $2.641B estimate.
- RBC Capital Maintains Sector Perform on Rocket Companies, Lowers Price Target to $14RBC Capital kept its Sector Perform rating and cut its price target to $14 from $16.
- JP Morgan Maintains Neutral on Rocket Companies, Raises Price Target to $13JP Morgan kept a Neutral rating and raised its price target to $13.
- Redfin Reports Decline in U.S. Home-Sale PricesRedfin, a Rocket Companies subsidiary, reported U.S. home-sale prices fell year over year for a third straight week.
- Live On CNBC, Bill Baruch Announces Bought Rocket CompaniesA CNBC appearance in which Bill Baruch said he bought Rocket Companies shares. No position size was disclosed in the feed.
About Rocket Companies, Inc.
Rocket Companies is a Detroit-based company best known for Rocket Mortgage, one of the largest US home lenders. It has added Redfin, the real-estate brokerage and listings site, and the loan servicer Mr. Cooper, so it now covers house hunting, the mortgage, title and closing, and collecting loan payments, alongside Rocket Money and Rocket Loans.
How it makes money
Most of its revenue comes from making home loans and selling them into the secondary market (gain-on-sale income). It also earns fees for servicing a large book of mortgages, which grew a lot after it bought Mr. Cooper. Smaller sources are Redfin brokerage commissions, title and closing fees (Rocket Close), personal loans and Rocket Money subscriptions. Quarterly revenue in 2026 has been roughly $2.5–3.3 billion.
What usually moves RKT
- Mortgage interest rates and refinancing waves
- Home sales and purchase-loan demand
- Value of its mortgage servicing rights
- Cost savings from merging Redfin and Mr. Cooper
- Mortgage market share and gain-on-sale margins
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