Rocket Companies (RKT) stock surged over 10% on acquisition news, signaling a positive outlook.

From Nasdaq: 2025-04-04 18:05:00

Rocket Companies RKT stock surged over +10% as the market fell, reaching over $15 a share in 2025. The planned acquisitions of Redfin RDFN and Mr. Cooper Group COOP have investors bullish, creating a one-stop homeownership shop. Rocket Companies’ strategic moves align with President Trump’s push for rate cuts, making it a standout in the market.

Acquiring Redfin and Mr. Cooper Group will simplify the home-buying process and expand Rocket Companies’ customer base. The all-stock transactions value Redfin at $1.75 billion and Mr. Cooper Group at $9.4 billion, creating a combined mortgage portfolio of over $2 trillion with nearly 10 million customers. The acquisitions are expected to be completed in Q2 or Q3.

Rocket Companies’ total sales are projected to increase by 13% in 2025 and 21% in 2026, with earnings expected to double this year to $0.46 per share. The company holds $1.28 billion in cash & equivalents, with total assets exceeding total liabilities by $9.05 billion. The acquisitions are forecasted to add over $3 billion in annual revenue.

Rocket Companies stock currently holds a Zacks Rank #3 (Hold). While the acquisitions of Redfin and Mr. Cooper Group are expected to create long-term value, investors may find better buying opportunities ahead after a significant YTD rally. Holding Redfin and Mr. Cooper Group stock could also be advantageous due to the premium reflected in their acquisition stock prices.



Read more at Nasdaq: M&A Watch: Buy the Surge in Rocket Companies (RKT) Stock?