Kura Sushi USA (NASDAQ:KRUS) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Kura Sushi USA from “Strong Buy” to “Strong Sell.” Other analysts also cut ratings or price targets, though the consensus remains “Hold,” with an average price target of $60.22.
• Shares opened at $27.95, near the stock’s 52-week low of $26.32 and well below its 52-week high of $80.84.
• The company’s latest quarterly results missed expectations: earnings were $0.08 per share versus $0.18 expected, while revenue of $88.88 million fell short of the $90.88 million consensus.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "strong sell" rating in a research report issued to clients and investors on Monday, Zacks reports.

KRUS has been the subject of several other research reports. Citigroup reduced their target price on shares of Kura Sushi USA from $36.00 to $31.00 and set a "neutral" rating for the company in a report on Monday. Wall Street Zen lowered shares of Kura Sushi USA from a "hold" rating to a "sell" rating in a research note on Saturday, October 24th. DA Davidson cut their price target on shares of Kura Sushi USA from $55.00 to $41.00 and set a "buy" rating on the stock in a research report on Friday. William Blair downgraded shares of Kura Sushi USA from an "outperform" rating to a "market perform" rating in a research note on Friday. Finally, TD Cowen decreased their price objective on Kura Sushi USA from $51.00 to $38.00 and set a "hold" rating for the company in a report on Friday, November 6th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Kura Sushi USA presently has an average rating of "Hold" and an average price target of $60.22.

Kura Sushi USA Price Performance

Shares of Kura Sushi USA stock opened at $27.95 on Monday. The business's 50 day simple moving average is $37.69 and its 200 day simple moving average is $52.16. Kura Sushi USA has a 52-week low of $26.32 and a 52-week high of $80.84.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.08 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.10). The firm had revenue of $88.88 million for the quarter, compared to analyst estimates of $90.88 million. Kura Sushi USA had a negative return on equity of 0.85% and a negative net margin of 1.41%. As a group, equities analysts forecast that Kura Sushi USA will post 0.12 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Kura Sushi USA

A number of institutional investors have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue bought a new stake in Kura Sushi USA during the third quarter worth $29,000. Janus Henderson Group PLC acquired a new stake in Kura Sushi USA in the first quarter valued at $205,000. Integrity Alliance LLC. bought a new position in shares of Kura Sushi USA in the 3rd quarter valued at about $204,000. Kings Path Partners LLC bought a new position in shares of Kura Sushi USA in the 3rd quarter valued at about $213,000. Finally, Quantinno Capital Management LP increased its stake in shares of Kura Sushi USA by 14.1% during the 1st quarter. Quantinno Capital Management LP now owns 7,367 shares of the company's stock worth $514,000 after purchasing an additional 909 shares during the last quarter. 65.49% of the stock is currently owned by institutional investors and hedge funds.

Kura Sushi USA Company Profile

Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States under the Kura Revolving Sushi Bar brand. Its restaurants feature a conveyor-belt dining format in which customers select dishes as they pass by, along with touchscreen ordering and automated systems designed to support restaurant operations. The company's menu includes a variety of sushi and other Japanese dishes, including nigiri, rolls, sashimi, appetizers, desserts and beverages. Kura Sushi USA also incorporates interactive elements into the dining experience, such as its Bikkura-Pon reward system, which offers customers games and prizes based on returned plates.

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