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

Key Points

• 52-week low: Rakuten's ADR (OTCMKTS:RKUNY) fell to $4.5040 mid-day and last traded at $4.54 on volume of 95,693 shares, trading below its 50-day ($5.42) and 200-day ($6.01) moving averages.
• Analyst downgrade: Zacks Research cut Rakuten from "hold" to "strong sell" on March 4, although MarketBeat's average rating remains "Buy" based on two Strong Buy and one Sell recommendations.
• Weak financials: The company missed quarterly EPS estimates (reported ($0.08) vs. ($0.04) expected), has a negative net margin (-7.13%) and ROE (-14.73%), and a high debt-to-equity ratio of 4.11.

Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $4.5040 and last traded at $4.54, with a volume of 95693 shares trading hands. The stock had previously closed at $4.5995.

Analyst Ratings Changes

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

Rakuten Trading Down 1.3%

The company has a market cap of $9.86 billion, a price-to-earnings ratio of -8.41 and a beta of 1.21. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 4.11. The business's 50 day moving average price is $5.42 and its 200-day moving average price is $6.01.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last announced its quarterly 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 company had revenue of $4.61 billion during the quarter, compared to analyst estimates of $4.15 billion. Rakuten had a negative net margin of 7.13% and a negative return on equity of 14.73%. On average, equities analysts anticipate that Rakuten, Inc. will post 0.06 EPS for the current fiscal year.

Rakuten Company Profile

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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