Rocket Companies Surges 5.8% on $790M Trading Volume, Ranks Among Top 500 by Daily Volume

Rocket Companies (RKT) surged 5.80% on September 5, with a trading volume of $790 million, reflecting renewed investor confidence. The rally was driven by the approval of its $9.4 billion all-stock merger with Mr. Cooper Group, a pivotal step in expanding its mortgage servicing capabilities. Under the terms, Mr. Cooper shareholders will receive 11 shares of Rocket Class A stock for each share held, integrating Mr. Cooper’s $2.1 trillion servicing portfolio into Rocket’s operations. The deal, which had faced regulatory and shareholder scrutiny, now advances toward completion with high participation rates in tender offers (88–98%), easing concerns over debt restructuring.

Market optimism was further bolstered by softer-than-expected U.S. jobs data, which reduced yield pressures and signaled potential Federal Reserve rate cuts. This environment benefits mortgage lenders like Rocket by lowering borrowing costs for consumers. Rocket’s recent financial performance also added momentum, including a second-quarter earnings beat and upwardly revised third-quarter revenue guidance. Analysts note the stock has surpassed its 12-month average price target of $17.55, potentially prompting rating upgrades. However, the company faces a 20% GSE servicing cap, which limits long-term growth despite its current 13% market share.

Rocket’s stock has gained 87.1% year-to-date, nearing its 52-week high of $20.67. Technical indicators suggest short-term bullish momentum, with the stock trading above key moving averages and resistance levels. A sustained break above $20.47 could validate the rally’s strength, while a pullback to $19.63 would test near-term support. The sector-wide shift toward lower mortgage rates—recently hitting a 10-month low of 6.5%—further supports Rocket’s growth trajectory as refinancing demand rises.

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