Rakuten (OTCMKTS:RKUNY) Sees Large Volume Increase - Should You Buy?

Key Points

• Shares saw a 111% increase in trading volume to 50,985 shares, with the stock trading around $4.56 and down about 1.7%.
• Analyst views are mixed: Zacks cut Rakuten to a 'strong sell', but MarketBeat's consensus (two Strong Buy, one Sell) remains a Buy.
• The latest quarter included an EPS miss (‑$0.08 vs. ‑$0.04 expected) and negative margins/ROE, although revenue beat at $4.61 billion and the company has a high debt/equity ratio (~4.11).

Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) shares saw an uptick in trading volume on Monday . 50,985 shares traded hands during mid-day trading, an increase of 111% from the previous session's volume of 24,171 shares.The stock last traded at $4.56 and had previously closed at $4.5995.

Wall Street Analysts Forecast Growth

Separately, Zacks Research lowered Rakuten from a "hold" rating to a "strong sell" rating in a research report on Wednesday, March 4th. Two investment analysts have rated the stock with a Strong Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy".

Rakuten Stock Down 1.7%

The firm has a fifty day simple moving average of $5.45 and a 200-day simple moving average of $6.02. The company has a market capitalization of $9.81 billion, a PE ratio of -8.37 and a beta of 1.21. The company has a debt-to-equity ratio of 4.11, a quick ratio of 1.16 and a current ratio of 1.16.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last released its earnings results on Thursday, February 12th. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.04) by ($0.04). Rakuten had a negative net margin of 7.13% and a negative return on equity of 14.73%. The business had revenue of $4.61 billion for the quarter, compared to analysts' expectations of $4.15 billion. Equities research analysts anticipate that Rakuten, Inc. will post 0.06 EPS for the current fiscal year.

About Rakuten

Rakuten, Inc is a diversified internet services company based in Tokyo, Japan, and founded in 1997 by Hiroshi Mikitani, who continues to serve as chairman and chief executive officer. Originally established as an online marketplace, Rakuten has expanded its reach to become a global technology group offering a wide range of digital services and consumer-facing platforms. The company is listed in Japan but its American depositary receipts trade over the counter under the symbol RKUNY.

At the core of Rakuten's business is its e-commerce marketplace, Rakuten Ichiba, which hosts millions of merchants and serves tens of millions of customers across Japan and other key markets.

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