A Pair of Stock To Put On Your Watchlist: Rocket Companies Inc. (RKT), Pennsylvania Real Estate Investment Trust (PEI)

Rocket Companies Inc. (NYSE: RKT) shares are 30.17% up in the year-to-date (YTD) period and have moved -1.48% or -$0.42 lower in the latest trading session. If we look at the shorter duration, its week performance is -3.81%.

Analyst Recommendations

On August 31, 2020, UBS recommended the RKT stock is a Neutral, while earlier, Wells Fargo had Initiated the stock as a Equal Weight on August 31, 2020. 11 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the RKT stock is a “Hold. 0 of the 11 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $28.00 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $18.00. The forecasts give the Rocket Companies Inc. stock a price target range of $35.00 on the higher side while at least one analyst think the stock could plunge to a low of $18.00. The two limits represent an upside potential of 20.0% or -55.56%.

Earnings Forecast

Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.39 and $0.67. Wall Street estimates earnings per share to be at an average of $1.46 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 14 over the last 12 months, while SEC filings reveal that there have been 1 insider sales over the same period. Insiders have purchases 4,058,787 shares while those sold by company executives and officers stand at 100,000,000. The last 3 months have seen insiders trade a total of 4,058,787 and 100,000,000 in purchases and sales respectively.

Pennsylvania Real Estate Investment Trust (NYSE:PEI), on the other hand, is trading around $1.10 with a market cap of $85.09M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$1.09 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Pennsylvania Real Estate Investment Trust (PEI) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

PEI’s operating margin was positive on the trailing 12 months basis, remaining steady at 6.60%, while the operating expenses over the recent quarter were at $17.18 million. This represented a 69.73% of the company’s total revenues which amounted $56.77 million. With this in place, we can see that the company’s diluted EPS declined -$0.30 on the year-over-year period, shrinking to -$0.08 as given in the last earnings report.

The cash flow from operating activities totaled -$3.73 million, significantly lower than the $62.35 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$38.28 million.

Insider activity

Insiders have transacted a total of 7 times at Pennsylvania Real Estate Investment Trust over the last 6 months, with insider purchases undertaken 6 times and accounting for 613,332 shares. Insider sales totaled 8,117 shares over the same period, with these deals completed in 1 transactions. Looking at these numbers, we realize that net purchases over that period are 5.0 shares. Insiders now hold a total of 13.6M shares after the latest sales, with 10.10% net shares purchased.

Major holders

Insiders own 2.30% of the company shares, while shares held by institutions stand at 48.70% with a share float percentage of 65.44M. Investors are also buoyed by the number of investors in a company, with Pennsylvania Real Estate Investment Trust having a total of 216 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 8.19 million shares worth more than $11.13 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 10.30% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 6.67 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $9.08 million and represent 8.40% of shares outstanding.