Zacks Investment Research Upgrades Rosetta Stone (NYSE:RST) to “Buy”

Rosetta Stone (NYSE:RST) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday, Zacks.com reports. The brokerage presently has a $19.00 target price on the software maker’s stock. Zacks Investment Research‘s price target points to a potential upside of 7.71% from the company’s current price.

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 have also weighed in on RST. Barrington Research reaffirmed a “buy” rating and set a $29.00 price objective on shares of Rosetta Stone in a research report on Wednesday, August 7th. ValuEngine raised 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 traded up $0.76 during mid-day trading on Thursday, reaching $17.64. The company had a trading volume of 8,089 shares, compared to its average volume of 166,327. The stock has a fifty day moving average of $18.06 and a two-hundred day moving average of $21.72. The company has a market capitalization of $408.13 million, a price-to-earnings ratio of -18.57 and a beta of 0.32. Rosetta Stone has a 12-month low of $14.43 and a 12-month high of $26.88.

Rosetta Stone (NYSE:RST) last issued its quarterly earnings data 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 the consensus estimate of $44.50 million. Research analysts expect that Rosetta Stone will post -0.6 earnings per share for the current year.

In other Rosetta Stone news, insider Nicholas C. Gaehde sold 2,500 shares of the stock in a transaction that occurred on Wednesday, September 11th. The stock was 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 SEC, 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 shares were sold at an average price of $19.69, for a total value of $200,463.89. Following the transaction, the director now owns 38,057 shares in the company, valued at approximately $749,342.33. The disclosure for this sale can be found here. Company insiders own 13.50% of the company’s stock.

A number of hedge funds have recently made changes to their positions in RST. Price T Rowe Associates Inc. MD grew its stake in shares of Rosetta Stone by 42.6% in the second quarter. Price T Rowe Associates Inc. MD now owns 3,879,288 shares of the software maker’s stock worth $88,758,000 after acquiring an additional 1,159,027 shares during the last quarter. Stephens Investment Management Group LLC bought a new position in Rosetta Stone in the second quarter worth $7,968,000. Acadian Asset Management LLC lifted its position in Rosetta Stone by 324.9% in the second quarter. Acadian Asset Management LLC now owns 333,213 shares of the software maker’s stock worth $7,624,000 after purchasing an additional 254,791 shares during the period. Rock Creek Group LP bought a new position in Rosetta Stone in the second quarter worth $3,903,000. Finally, Vanguard Group Inc. lifted its position in Rosetta Stone by 12.5% in the second quarter. Vanguard Group Inc. now owns 1,092,643 shares of the software maker’s stock worth $25,000,000 after purchasing an additional 121,224 shares during the period. 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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