Dan Gilbert’s Rocket shares rise 70% as newest Reddit target

A Rocket Companies sign is displayed on the exterior of the New York Stock Exchange, Thursday, Aug. 6, 2020, in New York. Shares of Rocket Companies, parent of Quicken Loans, began trading Thursday during the Detroit company's IPO at the NYSE. Quicken is the largest retail mortgage originator in the U.S. (AP Photo/Mark Lennihan) (Mark Lennihan, Copyright 2020 The Associated Press. All rights reserved)

DETROIT – The stock price of Rocket Companies, parent company of Dan Gilbert’s Quicken Loans, shot up more than 70% over the last 24 hours after the company became the newest “meme” stock of Reddit.

Rocket, which opened at $18 per share in August 2020, increased to $41 per share, as of Wednesday morning. Trading was halted briefly multiple times throughout the day on Tuesday due to volatility.

The same group of traders who helped rally the short-sold GameStop stock earlier this year is pushing $RKT: Reddit’s WallStreetBets.

Nearly 40% of its available shares are sold short and it is near the top of the list of U.S. companies in terms of size of short bet by hedge funds, according to FactSet.

Of course, there’s a huge difference between GameStop and Rocket. Rocket reported stronger-than-expected fourth-quarter earnings last Thursday, which impressed some Wall Street analysts. Rocket’s underlying businesses is much stronger than GameStop.

Rocket Companies consists of personal finance and consumer service brands, including Rocket Mortgage. It’s listed as “RKT” on the NYSE ticker.

More: GameStop’s saga may be over; its effect on Wall Street isn’t

About the Author:

Ken Haddad is the digital content and audience manager for WDIV / ClickOnDetroit.com. He also authors the Morning Report Newsletter and various other newsletters. He's been with WDIV since 2013. He enjoys suffering through Lions games on Sundays in the fall.