Rocket Companies (RKT) IPO A Big Hit With Day Traders

wall street

Rocket Companies Inc. (NYSE: RKT), the parent of Detroit-based Quicken Loans, a mortgage giant founded by billionaire Dan Gilbert, was a big hit with day traders after raising $1.8 billion in a U.S. initial public offering (IPO).

While the IPO misfired in terms of the company slashing the size of its offering by 50 million shares to 100 million shares at a price of $18 per share from a price of between $20 and $22 per share, the stock still managed to successfully get off the ground, jumping 19.50% in its first day of public trading.

According to Robintrack, the Robinhood community, which consists mostly of traders taking on high risks in exchange for high rewards in the short term, may have been the reason behind RKT’s debut surge, as nearly 55,000 accounts bought the Detroit-based company’s ticker.

In fact, Benzinga’s Jason Shubnell notes that Rocket Companies was the most bought name on Robintrack Thursday with 54,332 accounts buying the stock while the second-most bought ticker was tech giant Apple (NASDAQ:AAPL) with only 11,209 accounts.

At $1.8 billion, the Rocket IPO is one of the largest U.S. IPO so far in fiscal 2020.

Price Action

RKT continues to extend its run. The shares are near session highs at time of writing, last up over 14% to $24.74.

Reference: Benzinga

Be the first to comment

Leave a Reply

Your email address will not be published.


*