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Investing.com -- Shares of Rocket Companies (NYSE: RKT) climbed 5% in after-hours trading on Thursday following news that activist investment firm ValueAct Capital reported a 9.9% active stake in the company. The San Francisco-based firm, known for managing capital on behalf of institutional and individual investors, disclosed ownership of over 15 million shares in the Detroit-based mortgage lender.
The move by ValueAct Capital, which typically takes significant stakes in companies it believes are undervalued to influence their strategy, has spurred investor interest in Rocket Companies. The filing with the Securities and Exchange Commission indicated that ValueAct believes Rocket Companies’ stock is undervalued and represents an attractive investment opportunity.
According to the filing, ValueAct has engaged and plans to continue discussions with Rocket Companies’ management and board of directors on various topics. These include the company’s business operations, management, board composition—which may include a ValueAct representative joining the board—capital allocation, dividend policy, mergers and acquisitions strategy, and overall business strategy.
ValueAct’s involvement may also extend to conversations with other shareholders, industry analysts, potential strategic partners or competitors, and investment professionals.
Rocket Companies has not made any further public comments regarding ValueAct’s stake or its potential influence on the company’s strategic direction. The market’s positive reaction to the stake acquisition reflects optimism about the potential changes that ValueAct could bring to Rocket Companies’ business and governance.