As ValueAct Holdings, LP. buys a fresh stake in Rocket Companies Inc. (NYSE:RKT), Andrew Left‘s Citron Research endorses the move, calling the investment a “multi-year story.”
What Happened: The co-CEO and CIO of ValueAct, Mason Morfit, added 6.728 million shares worth $81.213 million to its portfolio during the first quarter, according to its 13F filings.
The company represented 1.8% of ValueAct’s total holdings as of the first quarter.
However, Rocket’s recent SEC filing dated May 15 showed that ValueAct held 15.125 million shares in the company, representing 9.9% of the total stake.
Citron Research cited this in an X post and lauded the co-CEO, Morfit, for being the “most strategic, long-term thinkers” and stating that he is one of the minds who reshaped Microsoft Corp. (NASDAQ:MSFT) from the boardroom.
“When someone like that sees $RKT as a compounder, it's not about quarterly noise—it's the start of a multi-year story,” said Citron’s post.
Highlighting Morfit’s comments, it added, “The CEO called Rocket a ‘sleeping giant’ in its ‘early innings’ yesterday,” the post added.
Why It Matters: Apart from Rocket Companies, ValueAct’s 13F filings showed 13 more companies that the firm held a stake in, after the first quarter. Here is a list of all its holdings.
| Holdings As Of Q1 | Stake | Value (In Million) |
| Salesforce Inc. (NYSE:CRM) | 17% | $777.84 |
| Walt Disney Co. (NYSE:DIS) | 14% | $648.07 |
| Insight Enterprises Inc. (NASDAQ:NSIT) | 13% | $609.22 |
| Meta Platforms Inc. (NASDAQ:META) | 13% | $584.93 |
| Roblox Corp. (NYSE:RBLX) | 11% | $510.91 |
| Visa Inc. (NYSE:V) | 10% | $460.14 |
| Liberty Media Corp. Series C (NASDAQ:LLYVK) | 5.80% | $266.01 |
| Expedia Group Inc. (NASDAQ:EXPE) | 4.10% | $187.79 |
| Live Nation Entertainment Inc. (NYSE:LYV) | 2.50% | $115.60 |
| Liberty Media Corp. Series A (NASDAQ:LLYVA) | 2.40% | $111.53 |
| Amazon.com Inc. (NASDAQ:AMZN) | 2.30% | $107.14 |
| Toast Inc. (NYSE:TOST) | 1.90% | $86.15 |
| Rocket Companies Inc. (NYSE:RKT) | 1.80% | $81.21 |
| Nu Holdings Ltd. (NYSE:NU) | 0.80% | $34.98 |
Price Action: Shares of RKT rose 1.35% on Thursday. The stock was up 17.70% on a year-to-date basis, but 8% lower over a year. It was trading nearly 6% higher during the premarket session on Friday.
Benzinga Edge Stock Rankings shows that RKT had a stronger price trend over the short and the medium term but a weaker trend over the long term. Its momentum ranking was moderate at the 37.21th percentile. You can check the details of other metrics over here.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Friday. The SPY was up 0.24% to $591.85, while the QQQ advanced 0.24% to $520.50, according to Benzinga Pro data.
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