DA Davidson Reaffirms Buy Rating for Kura Sushi USA (NASDAQ:KRUS)

Key Points

• DA Davidson reaffirmed its Buy rating on Kura Sushi USA with a $90 price objective, implying roughly a 20.35% upside from the prior close.
• Analyst sentiment is mixed — five Buys, five Holds and one Sell — leaving a consensus rating of Hold and an average target of $78.
• Kura Sushi missed quarterly EPS (−$0.23 vs. −$0.17 expected), reports negative net margin and ROE, and its stock traded at $74.78 (1‑year range $40.24–$95.98); an insider also sold 9,874 shares recently.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report)'s stock had its "buy" rating restated by analysts at DA Davidson in a research note issued to investors on Monday,Benzinga reports. They presently have a $90.00 price objective on the stock. DA Davidson's price target would suggest a potential upside of 20.35% from the company's previous close.

KRUS has been the topic of a number of other research reports. Benchmark reiterated a "buy" rating on shares of Kura Sushi USA in a research report on Thursday, January 8th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Kura Sushi USA in a research note on Monday, December 29th. Barclays dropped their price target on shares of Kura Sushi USA from $67.00 to $62.00 and set an "equal weight" rating on the stock in a research note on Wednesday, January 7th. Citigroup reissued a "neutral" rating on shares of Kura Sushi USA in a report on Thursday, January 8th. Finally, Royal Bank Of Canada set a $85.00 price objective on shares of Kura Sushi USA in a research report on Tuesday, January 20th. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $78.00.

Kura Sushi USA Price Performance

KRUS stock traded up $6.65 during trading on Monday, hitting $74.78. 60,054 shares of the company traded hands, compared to its average volume of 285,721. Kura Sushi USA has a 1 year low of $40.24 and a 1 year high of $95.98. The company has a market cap of $905.63 million, a PE ratio of -224.56 and a beta of 1.65. The stock's 50-day simple moving average is $67.05 and its 200 day simple moving average is $61.19.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report) last posted its earnings results on Wednesday, January 7th. The company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of ($0.17) by ($0.06). Kura Sushi USA had a negative net margin of 1.37% and a negative return on equity of 0.63%. The firm had revenue of $73.46 million for the quarter, compared to analysts' expectations of $72.98 million. During the same period last year, the firm earned ($0.08) earnings per share. Research analysts expect that Kura Sushi USA will post 0.22 earnings per share for the current year.

Insider Activity at Kura Sushi USA

In related news, insider Hajime Uba sold 9,874 shares of the stock in a transaction on Friday, January 16th. The stock was sold at an average price of $72.93, for a total value of $720,110.82. Following the completion of the transaction, the insider directly owned 6,026 shares of the company's stock, valued at approximately $439,476.18. This represents a 62.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.28% of the company's stock.

Institutional Trading of Kura Sushi USA

Several large investors have recently bought and sold shares of KRUS. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Kura Sushi USA by 18.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,983 shares of the company's stock worth $204,000 after purchasing an additional 613 shares during the last quarter. Jane Street Group LLC lifted its position in Kura Sushi USA by 122.5% during the first quarter. Jane Street Group LLC now owns 18,010 shares of the company's stock worth $922,000 after buying an additional 9,914 shares in the last quarter. Creative Planning acquired a new position in Kura Sushi USA during the second quarter worth $243,000. Legal & General Group Plc boosted its stake in Kura Sushi USA by 18.7% during the second quarter. Legal & General Group Plc now owns 7,240 shares of the company's stock worth $623,000 after buying an additional 1,139 shares during the last quarter. Finally, Franklin Resources Inc. purchased a new stake in Kura Sushi USA in the 2nd quarter valued at $332,000. Hedge funds and other institutional investors own 65.49% of the company's stock.

About Kura Sushi USA

Kura Sushi USA, Inc operates Japanese‐style revolving sushi restaurants across the United States. The company's concept centers on delivering a modern sushi dining experience by combining fresh ingredients with automated conveyer belt and plate‐return systems. Guests can choose from a broad menu that includes nigiri, sashimi, maki rolls, tempura, udon noodles and chef‐inspired seasonal dishes, all served directly from the conveyor belt or ordered on tabletop touchscreens.

Each restaurant integrates patented technology to ensure food quality and operational efficiency.

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