Why Rocket Companies Shares Inched Higher After-Hours Today

Rocket Companies Inc (NYSE: RKT) CEO Jay Farner purchased nearly $100,000 worth of shares in the real estate and mortgage firm on Wednesday under Rule 10b5-1 plan.

What Happened: Farner purchased 8,900 Rocket shares at an average price of $11.1961, according to a filing made with the U.S. Securities and Exchange Commission.

Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stock in accordance with insider trading laws. The price, amount and sale dates are pre-decided.

The CEO owns 1,509,307 Rocket shares after the transaction in direct form, according to the filing. The stake is worth nearly $16.8 million at Wednesday’s closing price of $11.15.

Rocket shares rose 1.3% in the after-hours session to $11.29, according to data from Benzinga Pro.

See Also: How To Buy Rocket Companies (RKT) Shares 

Why It Matters: Last week, the Detroit, Michigan-based company filed a Form 8-K with the SEC indicating that Farner entered into a purchase plan to buy Rocket stock.

Farner will have no influence or control over stock purchases under the terms of the plan, which allows him to buy up to $36 million of Rocket shares between March 30 and Dec. 30.

Rocket short percent of float has risen to 21.67% with 21.84 million shares sold short.