What Happened?
Shares of fintech mortgage provider Rocket Companies (NYSE:RKT) jumped 2.8% in the afternoon session after 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.
After the initial pop the shares cooled down to $18.67, up 2.8% from previous close.
Is now the time to buy Rocket Companies? Access our full analysis report here.
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 3 days ago when the stock dropped 3.7% on the news that Google's trial of a home sales listings feature in its search results sparked fears of new competition.
The move by the tech giant was seen as a potential disruption to existing online real estate platforms. The news also negatively affected other companies in the sector. Shares of Zillow Group plunged 11%, while Compass and eXp World Holdings also saw their stocks fall. The broad sell-off indicated investor concern that Google's entry into the space could challenge the business models of established real estate companies, creating a more competitive landscape.
Rocket Companies is up 72% since the beginning of the year, but at $18.67 per share, it is still trading 11.8% 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 $862.52.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave.