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

Rosetta Stone (NYSE:RST) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday, 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 analysts also recently commented on RST. Barrington Research reissued a “buy” rating and set a $29.00 price objective on shares of Rosetta Stone in a report on Wednesday, August 7th. ValuEngine raised shares of Rosetta Stone from a “buy” rating to a “strong-buy” rating in a report on Tuesday, October 1st.

RST opened at $18.60 on Friday. The firm has a 50-day simple moving average of $18.08 and a two-hundred day simple moving average of $21.68. Rosetta Stone has a 52 week low of $14.43 and a 52 week high of $26.88. The company has a market capitalization of $430.95 million, a PE ratio of -19.58 and a beta of 0.32.

Rosetta Stone (NYSE:RST) last released its quarterly earnings data on Tuesday, August 6th. The software maker reported ($0.12) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.15. The company had revenue of $45.94 million for the quarter, compared to the consensus estimate of $44.50 million. As a group, analysts forecast that Rosetta Stone will post -0.6 earnings per share for the current year.

In other Rosetta Stone news, Director Laurence Franklin sold 10,181 shares of the 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 completion of the transaction, the director now owns 38,057 shares of the company’s stock, valued at approximately $749,342.33. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Nicholas C. Gaehde sold 2,500 shares of the 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 disclosure for this sale can be found here. 13.50% of the stock is owned by corporate insiders.

Several large investors have recently made changes to their positions in the stock. Stephens Investment Management Group LLC lifted its position in Rosetta Stone by 16.5% during the third quarter. Stephens Investment Management Group LLC now owns 405,658 shares of the software maker’s stock valued at $7,058,000 after purchasing an additional 57,400 shares during the period. Voloridge Investment Management LLC acquired a new position in Rosetta Stone during the second quarter valued at $263,000. Nuveen Asset Management LLC acquired a new position in Rosetta Stone during the second quarter valued at $1,897,000. Price T Rowe Associates Inc. MD lifted its position in Rosetta Stone by 42.6% during the second quarter. Price T Rowe Associates Inc. MD now owns 3,879,288 shares of the software maker’s stock valued at $88,758,000 after purchasing an additional 1,159,027 shares during the period. Finally, Jane Street Group LLC lifted its position in Rosetta Stone by 36.4% during the second quarter. Jane Street Group LLC now owns 38,250 shares of the software maker’s stock valued at $875,000 after purchasing an additional 10,204 shares during the period. 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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