Home / Market News / Rocket Companies stock skyrockets, S3 says rally and short selling is reminiscent of another ‘meme’ stock

Rocket Companies stock skyrockets, S3 says rally and short selling is reminiscent of another ‘meme’ stock

Shares of Rocket Companies Inc. blasted 74.4% higher on very heavy volume in afternoon trading Tuesday, enough to pace all gainers on major U.S. exchanges, and put them on track for a record close. Trading volume was 306.4 million shares, compared with the full-day average of about 13.0 million shares over the past 30 days. The real estate services company, with brands including Rocket Mortgage and Rocket Homes, did not immediately respond to a request for comment. The stock is headed for the biggest one-day gain since it went public on Aug. 6, 2020, while volume nearly triple the previous record 111.6 million shares on Aug. 6. The stock has now skyrocketed 113.6% over the past three days, since the company reported better-than-expected fourth-quarter earnings and announced a special dividend of $1.11 a share. S3 Analytics said there has been a “large amount of short selling” into the stock’s (RKT) recent rally, with short interest interest increasing to 47.9 million shares, or 45.8% of the public float. “RKT’s stock price and short selling activity is reminiscent of another recent highflying ‘meme’ stock — GameStop Inc. ,” wrote Ihor Dusaniwsky, managing director of predictive analytics at S3 in a note to clients. The stock has now rallied 110.8% over the past three months, while the S&P 500 has tacked on 5.9%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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