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Rocket Companies stock skyrockets, S3 says rally and short selling is reminiscent of another ‘meme’ stock

Shares of Rocket Companies Inc.
RKT,
+71.19%

blasted 74.4% higher on very heavy volume in afternoon trading Tuesday, enough to pace all gainers on major U.S. exchanges, and put them on track for a record close. Trading volume was 306.4 million shares, compared with the full-day average of about 13.0 million shares over the past 30 days. The real estate services company, with brands including Rocket Mortgage and Rocket Homes, did not immediately respond to a request for comment. The stock is headed for the biggest one-day gain since it went public on Aug. 6, 2020, while volume nearly triple the previous record 111.6 million shares on Aug. 6. The stock has now skyrocketed 113.6% over the past three days, since the company reported better-than-expected fourth-quarter earnings and announced a special dividend of $1.11 a share. S3 Analytics said there has been a “large amount of short selling” into the stock’s (RKT) recent rally, with short interest interest increasing to 47.9 million shares, or 45.8% of the public float. “RKT’s stock price and short selling activity is reminiscent of another recent highflying ‘meme’ stock — GameStop Inc.
GME,
-1.84%
,
” wrote Ihor Dusaniwsky, managing director of predictive analytics at S3 in a note to clients. The stock has now rallied 110.8% over the past three months, while the S&P 500
SPX,
-0.81%

has tacked on 5.9%.

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