Rocket Companies Soars 6% In Friday Premarket As Activist Investor ValueAct Reveals New Position, Calls RKT A 'Sleeping Giant' In Early Innings
As ValueAct Holdings, LP. buys a fresh stake in Rocket Companies Inc. (NYSE:RKT), Andrew Left‘s Citron Research endorses the move, calling the investment a “multi-year story.”
What Happened: The co-CEO and CIO of ValueAct, Mason Morfit, added 6.728 million shares worth $81.213 million to its portfolio during the first quarter, according to its 13F filings.
The company represented 1.8% of ValueAct’s total holdings as of the first quarter.
However, Rocket’s recent SEC filing dated May 15 showed that ValueAct held 15.125 million shares in the company, representing 9.9% of the total stake.
Citron Research cited this in an X post and lauded the co-CEO, Morfit, for being the “most strategic, long-term thinkers” and stating that he is one of the minds who reshaped Microsoft Corp. (NASDAQ:MSFT) from the boardroom.
“When someone like that sees $RKT as a compounder, it's not about quarterly noise—it's the start of a multi-year story,” said Citron’s post.
Highlighting Morfit’s comments, it added, “The CEO called Rocket a ‘sleeping giant’ in its ‘early innings’ yesterday,” the post added.
Why It Matters: Apart from Rocket Companies, ValueAct’s 13F filings showed 13 more companies that the firm held a stake in, after the first quarter. Here is a list of all its holdings.
Holdings As Of Q1
Stake
Value (In Million)
Salesforce Inc. (NYSE:CRM)
17%
$777.84
Walt Disney Co. (NYSE:DIS)
14%
$648.07
Insight Enterprises Inc. (NASDAQ:NSIT)
13%
$609.22
Meta Platforms Inc. (NASDAQ:META)
13%
$584.93
Roblox Corp. (NYSE:RBLX)
11%
$510.91
Visa Inc. (NYSE:V)
10%
$460.14
Liberty Media Corp. Series C (NASDAQ:LLYVK)
5.80%
$266.01
Expedia Group Inc. (NASDAQ:EXPE)
4.10%
$187.79
Live Nation Entertainment Inc. (NYSE:LYV)
2.50%
$115.60
Liberty Media Corp. Series A (NASDAQ:LLYVA)
2.40%
$111.53
Amazon.com Inc. (NASDAQ:AMZN)
2.30%
$107.14
Toast Inc. (NYSE:TOST)
1.90%
$86.15
Rocket Companies Inc. (NYSE:RKT)
1.80%
$81.21
Nu Holdings Ltd. (NYSE:NU)
0.80%
$34.98
Price Action: Shares of RKT rose 1.35% on Thursday. The stock was up 17.70% on a year-to-date basis, but 8% lower over a year. It was trading nearly 6% higher during the premarket session on Friday.
Benzinga Edge Stock Rankings shows that RKT had a stronger price trend over the short and the medium term but a weaker trend over the long term. Its momentum ranking was moderate at the 37.21th percentile. You can check the details of other metrics over here.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Friday. The SPY was up 0.24% to $591.85, while the QQQ advanced 0.24% to $520.50, according to Benzinga Pro data.
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