Rakuten (OTCMKTS:RKUNY) Shares Gap Up - Here's What Happened

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.

Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report)'s stock price 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 changing hands.

Analysts Set New Price Targets

Several brokerages have recently weighed in on RKUNY. CLSA upgraded Rakuten to a "strong-buy" rating in a report on Thursday, May 29th. Nomura Securities upgraded 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, According to MarketBeat.com, the company currently has an average rating of "Strong Buy".

Rakuten Price Performance

The firm has a market capitalization of $14.46 billion, a PE ratio of -10.28 and a beta of 1.09. 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 firm has a 50-day simple moving average of $5.78 and a 200-day simple moving average of $5.69.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last announced its 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 firm had revenue of $4.04 billion during the quarter, compared to analysts' expectations of $3.83 billion. Rakuten had a negative return on equity of 18.83% and a negative net margin of 8.85%. As a group, equities analysts forecast that Rakuten, Inc. will post 0.06 earnings per share for the current 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.