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

Key Points

• Rakuten shares gapped down, opening at $6.32 compared to a previous close of $6.63, indicating investor concern.
• Despite the drop, Nomura Securities upgraded Rakuten from a "hold" rating to a "strong-buy" rating, contributing to a consensus rating of "Strong Buy" among analysts.
• In its latest earnings report, Rakuten missed earnings estimates with an EPS of ($0.16), while revenue of $4.04 billion exceeded expectations of $3.83 billion.

Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $6.63, but opened at $6.32. Rakuten shares last traded at $6.48, with a volume of 2,227 shares trading hands.

Analyst Ratings Changes

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

Rakuten Trading Down 2.0%

The company has a market capitalization of $14.08 billion, a P/E ratio of -10.00 and a beta of 1.21. The business's 50-day moving average price is $6.19 and its two-hundred day moving average price is $5.72. The company has a debt-to-equity ratio of 4.67, a current ratio of 1.15 and a quick ratio of 1.15.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last issued its quarterly earnings results 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). The business had revenue of $4.04 billion during the quarter, compared to analyst estimates of $3.83 billion. Rakuten had a negative net margin of 8.85% and a negative return on equity of 18.83%. As a group, analysts forecast 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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