Kura Sushi USA (NASDAQ:KRUS) Coverage Initiated at DA Davidson

Key Points

• DA Davidson initiated coverage on Kura Sushi USA with a "buy" rating, while overall analysts are split (5 buys, 5 holds, 1 sell) giving a consensus target price of $76.91 and an average rating of "Hold".
• Kura Sushi's most recent quarter showed an EPS miss of ($0.23) versus ($0.17) expected despite a slight revenue beat of $73.46M, and the company remains unprofitable with negative net margin and return on equity.
• The stock opened at $64 with a market cap of about $775M and a 12‑month range of $40.03–$95.98; insider Hajime Uba sold 9,874 shares (reducing their stake) and institutions now own roughly 65.5% of the shares.

Investment analysts at DA Davidson started coverage on shares of Kura Sushi USA (NASDAQ:KRUS - Get Free Report) in a research report issued on Friday,Benzinga reports. The brokerage set a "buy" rating on the stock.

KRUS has been the subject of several other research reports. Wall Street Zen cut Kura Sushi USA from a "hold" rating to a "strong sell" rating in a report on Saturday, January 10th. Benchmark reissued a "buy" rating on shares of Kura Sushi USA in a report on Thursday, January 8th. Lake Street Capital reaffirmed a "buy" rating and set a $70.00 price objective on shares of Kura Sushi USA in a report on Thursday, January 8th. Piper Sandler increased their price target on shares of Kura Sushi USA from $59.00 to $67.00 and gave the stock a "neutral" rating in a research report on Friday, January 16th. Finally, Citigroup reissued a "neutral" rating on shares of Kura Sushi USA in a report on Thursday, January 8th. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $76.91.

Kura Sushi USA Stock Down 4.9%

Shares of NASDAQ KRUS opened at $64.00 on Friday. Kura Sushi USA has a 12 month low of $40.03 and a 12 month high of $95.98. The company has a market cap of $775.04 million, a P/E ratio of -193.94 and a beta of 1.68. The business's 50 day moving average is $68.10 and its two-hundred day moving average is $64.16.

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

Insider Activity at Kura Sushi USA

In related news, insider Hajime Uba sold 9,874 shares of Kura Sushi USA stock in a transaction dated 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 $439,476.18. The trade was a 62.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 2.28% of the company's stock.

Institutional Investors Weigh In On Kura Sushi USA

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KRUS. Moody National Bank Trust Division increased its holdings in shares of Kura Sushi USA by 114.8% in the third quarter. Moody National Bank Trust Division now owns 46,079 shares of the company's stock valued at $2,738,000 after purchasing an additional 24,629 shares in the last quarter. Voya Investment Management LLC boosted its position in Kura Sushi USA by 17.4% in the 3rd quarter. Voya Investment Management LLC now owns 323,032 shares of the company's stock valued at $19,191,000 after buying an additional 47,830 shares during the last quarter. Granite Investment Partners LLC boosted its position in Kura Sushi USA by 35.2% in the 2nd quarter. Granite Investment Partners LLC now owns 184,677 shares of the company's stock valued at $15,897,000 after buying an additional 48,098 shares during the last quarter. Segall Bryant & Hamill LLC increased its stake in shares of Kura Sushi USA by 20.5% in the 2nd quarter. Segall Bryant & Hamill LLC now owns 92,506 shares of the company's stock valued at $7,963,000 after buying an additional 15,727 shares during the period. Finally, Maverick Capital Ltd. bought a new stake in shares of Kura Sushi USA during the second quarter worth $2,347,000. Institutional investors and hedge funds 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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