Zacks Investment Research Lowers Rosetta Stone (NYSE:RST) to Hold

Zacks Investment Research lowered shares of Rosetta Stone (NYSE:RST) from a strong-buy rating to a hold rating in a research report sent to investors 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 brokerages also recently commented on RST. Barrington Research restated a buy rating and issued a $29.00 price target on shares of Rosetta Stone in a research report on Wednesday, August 7th. ValuEngine upgraded shares of Rosetta Stone from a buy rating to a strong-buy rating in a research report on Tuesday, October 1st.

Shares of NYSE:RST opened at $17.08 on Wednesday. Rosetta Stone has a 1-year low of $14.43 and a 1-year high of $26.88. The company has a 50 day moving average price of $18.17 and a 200 day moving average price of $21.83.

Rosetta Stone (NYSE:RST) last issued its earnings results on Tuesday, August 6th. The software maker reported ($0.12) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.27) by $0.15. The business had revenue of $45.94 million for the quarter, compared to the consensus estimate of $44.50 million. As a group, sell-side analysts anticipate that Rosetta Stone will post -0.6 EPS for the current year.

In related news, insider Nicholas C. Gaehde sold 2,500 shares of the company’s stock in a transaction that occurred on Wednesday, September 11th. The shares were sold at an average price of $20.00, for a total value of $50,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Laurence Franklin sold 10,181 shares of the stock in a transaction that occurred on Wednesday, September 11th. The stock was sold at an average price of $19.69, for a total transaction of $200,463.89. Following the completion of the sale, the director now owns 38,057 shares of the company’s stock, valued at approximately $749,342.33. The disclosure for this sale can be found here. 13.50% of the stock is currently owned by corporate insiders.

Hedge funds have recently added to or reduced their stakes in the business. Marshall Wace LLP purchased a new stake in Rosetta Stone in the 1st quarter worth approximately $34,000. Bank of Montreal Can lifted its position in Rosetta Stone by 244.5% in the 2nd quarter. Bank of Montreal Can now owns 2,391 shares of the software maker’s stock worth $55,000 after buying an additional 1,697 shares in the last quarter. Quantamental Technologies LLC lifted its position in Rosetta Stone by 46.9% in the 2nd quarter. Quantamental Technologies LLC now owns 3,122 shares of the software maker’s stock worth $71,000 after buying an additional 997 shares in the last quarter. Aperio Group LLC purchased a new stake in Rosetta Stone in the 2nd quarter worth approximately $82,000. Finally, SG Americas Securities LLC purchased a new stake in Rosetta Stone in the 2nd quarter worth approximately $203,000. Institutional investors own 86.64% 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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