Quicken Starts Trading. Should You Buy?
Rocket Cos. (NYSE: RKT), the parent of Quicken Loans, launched into the market this week after pricing its initial public offering at $18 per share. With the help of the Federal Reserve, the mortgage origination industry is in the midst of a feast, with massive refinance opportunities for millions of mortgages. Rocket is certainly striking while the iron is hot. But does that mean the time is right to invest?
Image source: Getty Images.
Rocket originated $145 billion of mortgages in the U.S. last year and earned $894 million in net income, making it the nation's largest mortgage originator. Most of Rocket's origination is done in-house, which is a much different business model than most large originators, which buy a good chunk of their production from smaller lenders. The company has been taking share for years. In 2009, Quicken had a 1.3% share. In the first quarter of 2020, it had a 9.2% share.
Source Fool.com
