Jay Farner, CEO at Rocket Companies (RKT) continues to buy. On Friday of last week, he picked up 43,600 more shares, increasing his stake by 2.2 percent. The buy came to a total of just under $400,000.
That’s on top of similarly-sized buys last Wednesday and Monday as well. The CEO has been a steady buyer since late March, and has increased his overall holdings from over 1.7 million shares to just over 2.01 million.
Overall, insiders at the company own 2.8 percent of shares.
Shares are now down just over 60 percent in the past year, and revenue has slid as mortgage originations and refinancing activity has slid. Nevertheless, valuation has dropped from 13 times earnings to just over 4 times earnings.
Action to take: The market is in a meltdown over the prospect of rising interest rates, so buying now may be premature as there may be some short-term downside ahead. As concerns ease, however, investors may like shares for a sizeable rebound.
For traders, given the market sentiment right now, a put option play might be more attractive here. The June $8 puts, last going for about $0.21, could offer a big percentage return in the coming weeks on a further market meltdown. If shares look set to rebound, this would be highly volatile company for playing a swing higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.