Rocket Companies CEO: 'This Is Not A Stock You Want To Be Short'

Jayson Derrick
·2 min read

Shares of Detroit-based online mortgage and financial services company Rocket Companies Inc (NYSE: RKT) were trading higher by more than 10% Friday morning on no news.

Following the gain, CEO Jay Farner had a word of caution for short sellers: be careful.

What Happened: Rocket Companies, fresh off its 2020 initial public offering, has attracted some attention from short sellers, as is typically the case for all new listings, Farner said on CNBC's "Squawk Box." But short sellers should be made aware that Farner, along with company founder Dan Gilbert, and the leadership team own 95% of Rocket Companies.

Related Link: How Rocket Companies Created The Biggest Game Of Super Bowl Squares

Why It's Important: The leadership team's heavy ownership in shares is a testament to a shared belief that the company is well-positioned to grow.

"We have been growing for 35 years, we have shown consistent ability to grow and be profitable in any kind of market cycle," said Farner.

Rocket Companies has a lot of retail investors in its shareholder base because it's a stock that is easy to understand, he said. People use Rocket's platform to secure a mortgage and understand and this "bodes well" for the stock.

What's Next: Rocket Companies offers a multi-year long growth story, so this is "not a stock you want to be short in," the CEO said.

"You might want to rethink your position if that's how you are playing it," Farner said. "We've got a great track record and a lot of exciting things we are working on."

Rocket's stock traded around $21.36 at publication time. Shares earlier hit an intraday high of $24.30.

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