Rakuten (OTCMKTS:RKUNY) Shares Down 0.8% - Time to Sell?

Key Points

• Rakuten's shares fell 0.8% to $6.25, reflecting a decline in trading activity with only 7,345 shares exchanged, significantly below the average daily volume.
• Despite the recent drop, Nomura Securities upgraded Rakuten from a "hold" to a "strong buy" rating, with a current consensus rating of "Strong Buy" among analysts.
• In the latest quarterly earnings report, Rakuten posted a loss of ($0.16) EPS, missing estimates, but reported revenue of $4.04 billion, beating forecasts of $3.83 billion.

Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) shares dropped 0.8% on Thursday . The stock traded as low as $6.23 and last traded at $6.25. Approximately 7,345 shares traded hands during mid-day trading, a decline of 12% from the average daily volume of 8,387 shares. The stock had previously closed at $6.30.

Analyst Upgrades and Downgrades

Separately, Nomura Securities upgraded shares of Rakuten from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 26th. Two research analysts have rated the stock with a Strong Buy rating, According to data from MarketBeat, the stock presently has a consensus rating of "Strong Buy".

Rakuten Trading Down 0.8%

The company has a debt-to-equity ratio of 4.67, a current ratio of 1.15 and a quick ratio of 1.15. The stock has a market cap of $13.54 billion, a price-to-earnings ratio of -9.62 and a beta of 1.21. The company's fifty day moving average price is $6.30 and its 200-day moving average price is $5.76.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last posted its quarterly earnings data on Friday, August 8th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.20). Rakuten had a negative net margin of 8.85% and a negative return on equity of 18.83%. The company had revenue of $4.04 billion for the quarter, compared to analyst estimates of $3.83 billion. On average, research analysts expect that Rakuten, Inc. will post 0.06 EPS for the current fiscal year.

About Rakuten

Rakuten Group, Inc provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites.

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