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But RKT’s stock is down 9.6% in price year-to-date. Closing yesterday’s trading session at $18.29, the stock is currently trading 57.5% below its 52-week high of $43.
Although a low-interest-rate environment has helped the company achieve record loan-origination volume in its last reported quarter, its gain-on-sale margin declined significantly. In the Direct-to-Consumer segment, RKT’s adjusted revenue declined 44.4% year-over-year. Furthermore, ongoing class-action lawsuits against the company and increased competition in the housing market could make the stock a risky buy right now.
