Dan Gilbert sells $500 million worth of Rocket stock

Stock cash-out coincides with philanthropic pledge to Detroit

Rocket Companies Chairman Dan Gilbert sold 20 million shares of common stock on Wednesday, cashing out just under $500 million, according to disclosures Rocket made to the Securities and Exchanges Commission.

The Form 4 file, made public Wednesday evening, shows Gilbert sold 20.2 million shares of common stock at $24.75 a unit for $499.95 million.

That stock sale would appear to be linked with Gilbert’s latest philanthropic venture. Last week, the Gilbert Family Foundation and the Rocket Community Fund pledged to donate a total of $500 million to community organizations in Detroit over the next decade.

The Gilbert Family Foundation will contribute $350 million, and the Rocket Community Fund will invest $150 million, Gilbert announced during his first television appearance in years.

To start, Gilbert’s family foundation will entirely eliminate the property tax debt owed by about 20,000 low-income homeowners in the city of Detroit. The Gilbert Family Foundation claims this will preserve roughly $400 million in wealth and home equity in the city.

The company sold 100 million shares of Class A common stock at $18 a share in August to kick off the mortgage IPO wave. Gilbert’s interest in Rocket Companies is well over 90%, even after the $500 million stock sale. His net worth has reached as high as an estimated $50 billion over the past year.

On Thursday, Rocket’s stock fell 2.34% to $22.55.

In late 2020, as the stock struggled despite industry-record profits, Rocket announced it would pay a special $1.11 dividend. It also announced a $1 billion share buyback.

The mortgage lender, which made $9.5 billion in profits on $320 billion in originations last year, also announced another sports sponsorship. Rocket Pro TPO, its wholesale business, will be the primary sponsor of the first-ever entrant in the Indianapolis 500 that is female-owned, female-driven and largely female-crewed. The company will have prominent branding on Paretta Autosport‘s No. 16 Chevrolet.

Leave a Reply

Your email address will not be published.

Most Popular Articles

Caliber Home Loans CEO Sanjiv Das steps down

Sanjiv Das, CEO of Caliber Home Loans, is stepping down as CEO of the company, less than one year after New Residential Investment Corp. (Newrez) acquired the mortgage lender and servicer, sources familiar with the situation confirmed. 

Latest Articles

Why It’s Time for Foreclosure Tech Innovation

Hosted by Stavvy Collateral valuation is a critical component of mortgage lending and the home sales With the federal foreclosure moratorium expiring in 2022, the market will undoubtedly see growth in foreclosure transactions as it tries to catch up on both past and present loans. The return to working foreclosure is a perfect opportunity for […]

Jan 27, 2022 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please