New Zealand markets closed
  • NZX 50

    12,636.55
    -114.83 (-0.90%)
     
  • NZD/USD

    0.7161
    +0.0022 (+0.31%)
     
  • ALL ORDS

    7,317.50
    +36.90 (+0.51%)
     
  • OIL

    63.02
    -0.13 (-0.21%)
     
  • GOLD

    1,747.00
    +10.70 (+0.62%)
     

Rocket surges 71% as shorts are 'crashing and burning'

Ines Ferré
·Markets Reporter
·1-min read

Short sellers beware. Redditors appear to be targeting Rocket Companies (RKT). Shares of the online mortgage provider were halted for volatility on Tuesday after gaining more than 60%. The stock closed 71% higher at $41.50 each. Rocket COs has been discussed heavily on Reddits WallStreetBets in recent days.

"Rocket Shorts are Crashing and Burning," read the title of S3 Analytics' note to investors on Tuesday.

The recent movement on the stock is reminiscent of the GameStop (GME) short squeeze that took place in January.

"But in a Gamestock-esque twist, as old shorts buy-to-cover, we are seeing new shorts building short positions as stock borrows become available," wrote S3's Ihor Dusaniwsky.

Short interest on the stock is $1.21 billion, 49.70 million shares shorted, 45.83% SI % of float, according to the firm's data. Its also the the fifth largest short in the banking sector.

In late February the parent company of Quicken Loans reported quarterly results in February which beat Wall Street estimates. In a recent interview with Yahoo Finance Live, CEO Jay Farner highlighted his company's expansion and ability to scale the platform.

In response to the high short interest in Rocket Cos, he said, "I assume over time we'll see fewer and fewer people shorting the stock."

"We're just going to keep doing what we do which is focus on our platform, focus on our business, focus on great client experience, and I believe the rest will kind of take care of itself," he added.

Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre

Here's why Tesla's stock tumbled after Battery Day, and why analysts are still bullish

Nikola calls short-seller report a 'hit job,' shares still fall

Tesla analyst is bullish on what the company is doing with its high-priced stock, raises price target to $550

Apple analyst says record-breaking share price rally is about 'MOMO' not 'FOMO'

Tesla shares surge 12% on day of stock split