Rakuten (OTCMKTS:RKUNY) Shares Gap Down - Should You Sell?

Key Points

• Rakuten shares gapped down to $6.14 from a previous close of $6.43, with a trading volume of 207 shares.
• Nomura Securities upgraded Rakuten from a "hold" to a "strong-buy" rating, contributing to an average rating of "Strong Buy" among analysts.
• In its latest earnings report, Rakuten missed EPS estimates by ($0.20), reporting a loss of ($0.16) per share despite revenue of $4.04 billion.

Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $6.43, but opened at $6.14. Rakuten shares last traded at $6.14, with a volume of 207 shares changing hands.

Analysts Set New Price Targets

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

Rakuten Trading Down 3.7%

The stock has a 50-day simple moving average of $5.96 and a 200 day simple moving average of $5.70. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 4.67. The company has a market cap of $13.41 billion, a price-to-earnings ratio of -9.52 and a beta of 1.21.

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

Rakuten Company Profile

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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