Rakuten (OTCMKTS:RKUNY) Shares Gap Up - Should You Buy?

Key Points

• Rakuten shares opened at $6.84 after previously closing at $6.61, with recent trading at $6.77.
• Wall Street analysts have upgraded Rakuten's stock rating to "strong-buy", indicating optimism about future growth.
• Despite missing earnings estimates with a reported ($0.16) EPS, Rakuten exceeded revenue expectations at $4.04 billion for the quarter.

Shares of Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $6.61, but opened at $6.84. Rakuten shares last traded at $6.77, with a volume of 1,845 shares.

Analysts Set New Price Targets

A number of brokerages recently issued reports on RKUNY. Nomura Securities raised Rakuten from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 26th. CLSA raised Rakuten to a "strong-buy" rating in a report on Thursday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, Based on data from MarketBeat.com, the stock has an average rating of "Strong Buy".

Rakuten Trading Down 1.2%

The company has a market cap of $14.46 billion, a PE ratio of -10.28 and a beta of 1.09. 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 stock has a 50 day moving average price of $5.78 and a 200 day moving average price of $5.68.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last announced its quarterly earnings data on Friday, August 8th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.04 by ($0.20). The company had revenue of $4.04 billion for the quarter, compared to analysts' expectations of $3.83 billion. Rakuten had a negative net margin of 8.85% and a negative return on equity of 18.83%. Sell-side 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.