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

Zacks Investment Research cut shares of Rosetta Stone (NYSE:RST) from a strong-buy rating to a hold rating in a research note released on Wednesday morning, 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 analysts have also weighed in on the stock. ValuEngine upgraded shares of Rosetta Stone from a buy rating to a strong-buy rating in a research report on Tuesday, October 1st. Barrington Research reiterated a buy rating and set a $29.00 target price on shares of Rosetta Stone in a research report on Wednesday, August 7th.

Shares of Rosetta Stone stock opened at $17.08 on Wednesday. The firm’s 50-day simple moving average is $18.17 and its 200-day simple moving average is $21.83. Rosetta Stone has a twelve month low of $14.43 and a twelve month high of $26.88.

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, beating the consensus estimate of ($0.27) by $0.15. The business had revenue of $45.94 million for the quarter, compared to analyst estimates of $44.50 million. Research analysts forecast that Rosetta Stone will post -0.6 earnings per share for the current year.

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

Hedge funds have recently made changes to their positions in the stock. Marshall Wace LLP bought a new position in Rosetta Stone during the 1st quarter valued at about $34,000. Bank of Montreal Can lifted its holdings in Rosetta Stone by 244.5% during the 2nd quarter. Bank of Montreal Can now owns 2,391 shares of the software maker’s stock valued at $55,000 after purchasing an additional 1,697 shares during the last quarter. Quantamental Technologies LLC lifted its holdings in Rosetta Stone by 46.9% during the 2nd quarter. Quantamental Technologies LLC now owns 3,122 shares of the software maker’s stock valued at $71,000 after purchasing an additional 997 shares during the last quarter. Aperio Group LLC bought a new position in Rosetta Stone during the 2nd quarter valued at about $82,000. Finally, SG Americas Securities LLC bought a new position in Rosetta Stone during the 2nd quarter valued at about $203,000. 86.64% of the stock is owned by hedge funds and other institutional investors.

About Rosetta Stone

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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