On May 24, 2025, activist investor ValueAct took a 9.99% ownership stake in Rocket Companies, with an average cost of $12.37 per share. ValueAct is known for its long-term, thoughtful approach to corporate governance and value creation, often taking board seats in its core portfolio positions.
The firm believes Rocket's technological leadership, particularly its deep investments in proprietary AI, positions it to significantly boost operational efficiency and profitability. ValueAct highlighted Rocket's ability to originate a loan at approximately one-third the cost of peers and close loans in an average of 21 days versus 45 days for competitors.
ValueAct also noted that Rocket's public float is set to increase to 35% from 7% due to pending acquisitions of Redfin and Mr. Cooper, and its capital structure will simplify from four to two share classes. This increased float and simpler structure are expected to attract a broader base of long-term institutional investors. The firm's involvement signals potential for accelerated value creation through strategic and operational enhancements.
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