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

Key Points

• Trading volume jumped ~36% to about 55,293 shares on Tuesday while the stock traded around $5.00, roughly a 1.2% intraday increase from the prior close.
• Analyst sentiment is mixed: Zacks recently cut Rakuten to a "strong sell", yet MarketBeat data shows a consensus rating of "Buy" (two Strong Buys and one Sell).
• Fundamentals show weakness despite a revenue beat ($4.61B vs. $4.15B): Rakuten reported ($0.08) EPS

Shares of Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 55,293 shares traded hands during mid-day trading, an increase of 36% from the previous session's volume of 40,637 shares.The stock last traded at $5.00 and had previously closed at $4.92.

Wall Street Analysts Forecast Growth

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

Rakuten Trading Up 1.2%

The firm has a fifty day simple moving average of $4.99 and a two-hundred day simple moving average of $5.80. The stock has a market cap of $10.62 billion, a PE ratio of -9.05 and a beta of 1.20. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 4.11.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last issued its earnings results on Thursday, February 12th. The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.04). The business had revenue of $4.61 billion during the quarter, compared to analysts' expectations of $4.15 billion. Rakuten had a negative return on equity of 14.73% and a negative net margin of 7.13%. As a group, equities analysts expect that Rakuten, Inc. will post -0.07 earnings per share 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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