Dan Gilbert, Chairman of Quicken Loans
Anjali Sundaram | CNBC
The dramatic and unusual surge in Rocket Companies’ shares on Tuesday made for a great godsend for founder Dan Gilbert, at least on paper.
Shares in Rocket, of which Gilbert is the majority shareholder, rose more than 70% on Tuesday, adding $ 17.30 per share. According to InsiderScore.com and the securities submitted, Gilbert owns approximately 1.9 billion shares of Rocket, bringing his paper profit to more than $ 32 billion.
The move put Gilbert in the top 20 of the Bloomberg Billionaire Index with around $ 64 billion.
However, some of those paper profits quickly reversed on Wednesday. Rocket’s shares fell more than 7%. And analysts were quick to point out how irrational the move was on Wednesday, saying stocks could pull back significantly from here. JPMorgan sees the stock cut in half.
The stock was one of the most abbreviated names in the United States prior to its surge, meaning its rapid surge could be a temporary jump caused by a brief squeeze. The company was also at the center of the chatter among Reddit traders, much like stocks like GameStop and AMC Entertainment, which saw dramatic jumps and falls earlier this year.
Rocket, the parent company of Quicken Loans and Rocket Mortgage, went public last August. Gilbert is also the owner of the NBA’s Cleveland Cavaliers.