Rakuten (OTCMKTS:RKUNY) Shares Gap Up - Time to Buy?

Key Points

• Rakuten's shares opened at $6.71 after closing at $6.28, indicating a positive market reaction.
• Nomura Securities upgraded Rakuten to a "strong-buy" rating, contributing to the stock's current average rating of "Strong Buy" from analysts.
• In its latest earnings report, Rakuten missed EPS expectations, posting a loss of ($0.16) while generating $4.04 billion in revenue, exceeding analyst estimates.

Shares of Rakuten, Inc. (OTCMKTS:RKUNY - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $6.28, but opened at $6.71. Rakuten shares last traded at $6.71, with a volume of 469 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 equities research analysts have rated the stock with a Strong Buy rating, Based on data from MarketBeat, Rakuten currently has an average rating of "Strong Buy".

Rakuten Stock Up 0.9%

The firm has a fifty day moving average price of $6.09 and a 200 day moving average price of $5.71. The firm has a market capitalization of $13.73 billion, a price-to-earnings ratio of -9.75 and a beta of 1.21. The company has a debt-to-equity ratio of 4.67, a quick ratio of 1.15 and a current ratio of 1.15.

Rakuten (OTCMKTS:RKUNY - Get Free Report) last posted 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). Rakuten had a negative return on equity of 18.83% and a negative net margin of 8.85%.The company had revenue of $4.04 billion during the quarter, compared to analyst estimates of $3.83 billion. As a group, sell-side 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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