Rocket Companies (RKT) Plunge 2.66% to Fresh Low on Weak Profitability, Operational Struggles

The share price fell to its lowest level so far this month today, with an intraday decline of 1.45%.

Rocket Companies (RKT) has seen its stock drop 2.66% over three consecutive days, reaching a fresh low amid weak profitability metrics and mixed financial performance. Despite a 76.4% revenue growth over three years, the company’s net margin of -1.86% and an EPS of $0.08 highlight operational challenges. Analysts have assigned a cautious “Hold” rating, with a $21.50 target price, while technical indicators like a 14-day RSI of 71.38 suggest nearing overbought territory despite a 282.69 P/E ratio near its 10-year peak.

Institutional activity has added complexity, with Udine Wealth Management boosting its stake by 86.1% in Q3 2025, yet overall institutional ownership remains low at 4.59%. Insider selling, including 19 transactions in three months, compounds concerns about liquidity risks. Rocket’s exposure to mortgage market volatility and a beta of 2.9 further amplify sensitivity to rate shifts, as sector-specific risks like regulatory changes and margin compression weigh on its outlook. While some analysts have upgraded price targets to $20.00–$25.00, the stock’s high leverage and thin margins underscore structural vulnerabilities in a cyclical industry.