Rosetta Stone (RST) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Rosetta Stone (NYSE:RST) from a buy rating to a hold rating in a research note published on Wednesday, Zacks.com reports.

According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “

Several other research firms have also recently weighed in on RST. ValuEngine cut Rosetta Stone from a strong-buy rating to a buy rating in a research report on Monday, February 4th. Lake Street Capital upped their target price on Rosetta Stone from $21.00 to $26.00 and gave the stock a buy rating in a report on Wednesday. Finally, Barrington Research reiterated a buy rating and set a $27.00 target price (up previously from $24.00) on shares of Rosetta Stone in a report on Thursday, March 7th. One analyst has rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of Buy and a consensus target price of $27.00.

RST stock opened at $26.32 on Wednesday. The stock has a market cap of $626.94 million, a PE ratio of -27.71 and a beta of 0.26. Rosetta Stone has a fifty-two week low of $14.14 and a fifty-two week high of $26.88.

Rosetta Stone (NYSE:RST) last posted its quarterly earnings data on Tuesday, May 7th. The software maker reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.24) by $0.22. The firm had revenue of $44.61 million for the quarter, compared to analyst estimates of $43.50 million. Research analysts anticipate that Rosetta Stone will post -0.68 EPS for the current fiscal year.

In related news, insider M. Sean Hartford sold 16,988 shares of the company’s stock in a transaction dated Monday, March 11th. The stock was sold at an average price of $21.70, for a total transaction of $368,639.60. Following the sale, the insider now owns 13,897 shares in the company, valued at $301,564.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Nicholas C. Gaehde sold 2,500 shares of the company’s stock in a transaction dated Monday, April 15th. The stock was sold at an average price of $23.59, for a total value of $58,975.00. The disclosure for this sale can be found here. Insiders have sold 86,121 shares of company stock worth $1,979,388 in the last quarter. 13.50% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. TimesSquare Capital Management LLC raised its holdings in Rosetta Stone by 4.6% during the first quarter. TimesSquare Capital Management LLC now owns 1,685,405 shares of the software maker’s stock worth $36,826,000 after acquiring an additional 74,680 shares in the last quarter. BlackRock Inc. raised its stake in Rosetta Stone by 5.3% in the first quarter. BlackRock Inc. now owns 1,428,059 shares of the software maker’s stock valued at $31,204,000 after buying an additional 71,488 shares during the period. Vanguard Group Inc raised its stake in Rosetta Stone by 0.6% in the third quarter. Vanguard Group Inc now owns 1,060,995 shares of the software maker’s stock valued at $21,104,000 after buying an additional 6,215 shares during the period. Vanguard Group Inc. raised its stake in Rosetta Stone by 0.6% in the third quarter. Vanguard Group Inc. now owns 1,060,995 shares of the software maker’s stock valued at $21,104,000 after buying an additional 6,215 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in Rosetta Stone by 7.9% in the third quarter. Dimensional Fund Advisors LP now owns 698,924 shares of the software maker’s stock valued at $13,901,000 after buying an additional 51,186 shares during the period. Institutional investors and hedge funds own 81.06% of the company’s stock.

Rosetta Stone Company Profile

Rosetta Stone Inc, together with its subsidiaries, provides technology-based learning products in the United States and internationally. It operates through three segments: Literacy, E&E Language, and Consumer Language. The company develops, markets, and supports a suite of language-learning, literacy, and brain fitness solutions consisting of Web-based software subscriptions, perpetual software products, online and professional services, audio practice products, and mobile applications.

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