What Happened?
Shares of mortgage servicing company Mr. Cooper Group (NASDAQ: COOP) jumped 3.6% in the morning session after its stockholders approved the proposed merger with Rocket Companies.
The approval was granted during a special meeting, marking a key step toward finalizing the deal. Under the terms of the merger agreement, Mr. Cooper stockholders will receive 11 shares of Rocket Class A common stock for each share of Mr. Cooper stock they own. Additionally, Mr. Cooper may issue a special dividend of $2.00 per share to its stockholders before the transaction's completion. The combination of two major players in the mortgage industry is still subject to the satisfaction or waiver of remaining closing conditions before it can be finalized.
After the initial pop the shares cooled down to $195.71, up 3.5% from previous close.
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What Is The Market Telling Us
Mr. Cooper Group’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 3.6% on the news that the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
Mr. Cooper Group is up 108% since the beginning of the year, and at $195.71 per share, it is trading close to its 52-week high of $202.86 from August 2025. Investors who bought $1,000 worth of Mr. Cooper Group’s shares 5 years ago would now be looking at an investment worth $10,660.
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