Investors Buy Large Volume of Call Options on Rosetta Stone (RST)

Rosetta Stone Inc (NYSE:RST) saw unusually large options trading activity on Wednesday. Stock traders bought 1,390 call options on the company. This represents an increase of 2,072% compared to the typical daily volume of 64 call options.

In other Rosetta Stone news, insider Nicholas C. Gaehde sold 10,092 shares of the business’s stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $23.54, for a total transaction of $237,565.68. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director David Nierenberg sold 20,806 shares of the business’s stock in a transaction dated Friday, March 15th. The stock was sold at an average price of $22.82, for a total transaction of $474,792.92. The disclosure for this sale can be found here. Insiders have sold a total of 86,121 shares of company stock worth $1,979,388 over the last 90 days. 13.50% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Martingale Asset Management L P raised its holdings in shares of Rosetta Stone by 57.8% in the 1st quarter. Martingale Asset Management L P now owns 63,601 shares of the software maker’s stock worth $1,391,000 after purchasing an additional 23,301 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Rosetta Stone by 285.3% in the first quarter. JPMorgan Chase & Co. now owns 70,185 shares of the software maker’s stock worth $1,534,000 after acquiring an additional 51,968 shares in the last quarter. Spark Investment Management LLC increased its position in shares of Rosetta Stone by 714.4% in the first quarter. Spark Investment Management LLC now owns 117,269 shares of the software maker’s stock worth $2,562,000 after acquiring an additional 102,869 shares in the last quarter. First Mercantile Trust Co. increased its position in shares of Rosetta Stone by 12.5% in the first quarter. First Mercantile Trust Co. now owns 12,486 shares of the software maker’s stock worth $273,000 after acquiring an additional 1,389 shares in the last quarter. Finally, Schwartz Investment Counsel Inc. increased its position in shares of Rosetta Stone by 26.7% in the first quarter. Schwartz Investment Counsel Inc. now owns 609,309 shares of the software maker’s stock worth $13,313,000 after acquiring an additional 128,291 shares in the last quarter. Institutional investors and hedge funds own 81.06% of the company’s stock.

NYSE RST opened at $26.18 on Thursday. Rosetta Stone has a 12 month low of $14.14 and a 12 month high of $26.48. The company has a market capitalization of $604.11 million, a P/E ratio of -27.56 and a beta of 0.26.

Rosetta Stone (NYSE:RST) last released its earnings results on Tuesday, May 7th. The software maker reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.24) by $0.22. The business had revenue of $44.61 million during the quarter, compared to the consensus estimate of $43.50 million. On average, analysts predict that Rosetta Stone will post -0.68 earnings per share for the current fiscal year.

A number of analysts have commented on RST shares. Zacks Investment Research upgraded shares of Rosetta Stone from a “hold” rating to a “buy” rating and set a $18.00 price target on the stock in a research report on Friday, February 15th. ValuEngine downgraded shares of Rosetta Stone from a “strong-buy” rating to a “buy” rating in a report on Monday, February 4th. Lake Street Capital boosted their target price on shares of 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 issued a $27.00 target price (up from $24.00) on shares of Rosetta Stone in a report on Thursday, March 7th. One equities research analyst has rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $27.00.

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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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