Rakuten (OTCMKTS:RKUNY) Sets New 52-Week Low - Should You Sell?

Key Points

• Rakuten shares hit a new 52-week low of $3.85 before closing at $3.87, below their 50-day and 200-day moving averages.
• Wall Street sentiment remains cautious: Zacks upgraded the stock to “Hold,” and the analyst consensus is also “Hold.”
• Rakuten exceeded quarterly revenue and EPS expectations, but it continues to report a negative net margin and return on equity; analysts expect a full-year loss of $0.12 per share.

Shares of Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) hit a new 52-week low on Wednesday. The company traded as low as $3.85 and last traded at $3.87, with a volume of 38,071 shares trading hands. The stock had previously closed at $3.90.

Wall Street Analyst Weigh In

Separately, Zacks Research raised shares of Rakuten to a "hold" rating in a research note on Friday, September 25th. One equities research analyst has rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold".

Rakuten Price Performance

The company has a debt-to-equity ratio of 3.64, a current ratio of 1.10 and a quick ratio of 1.10. The stock has a 50 day simple moving average of $4.43 and a two-hundred day simple moving average of $4.96. The company has a market cap of $8.46 billion, a price-to-earnings ratio of -20.39 and a beta of 1.12.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last issued its earnings results on Friday, August 14th. The company reported $0.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.07) by $0.09. Rakuten had a negative return on equity of 5.09% and a negative net margin of 2.48%. The business had revenue of $4.18 billion during the quarter, compared to the consensus estimate of $4.11 billion. On average, equities research analysts predict that Rakuten, Inc. will post -0.12 earnings per share for the current fiscal year.

About Rakuten

Rakuten Group, Inc is a Japan-based technology and internet services company founded in 1997 by Hiroshi Mikitani, who continues to serve as chairman and chief executive officer.

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