Kura Sushi USA (NASDAQ:KRUS) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Kura Sushi USA to “sell” from “hold,” making it the only analyst among the 11 tracked to issue a sell rating.
• Despite the downgrade, the broader analyst consensus remains “hold”, with four buys and six holds and an average price target of $69, above the stock’s reported $48.83 opening price.
• Kura Sushi reported quarterly EPS of $0.03, beating estimates for a $0.05 loss, while revenue of $85.92 million came slightly below expectations and the company maintained negative net margins and return on equity.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

Several other analysts have also weighed in on the company. Roth Capital lowered their price objective on Kura Sushi USA from $85.00 to $70.00 and set a "buy" rating for the company in a report on Wednesday, July 8th. Freedom Capital raised Kura Sushi USA to a "hold" rating in a report on Wednesday, July 1st. Citigroup decreased their target price on Kura Sushi USA from $64.00 to $59.00 and set a "neutral" rating for the company in a research report on Wednesday, July 8th. Lake Street Capital lowered their price target on Kura Sushi USA from $83.00 to $72.00 and set a "buy" rating for the company in a report on Wednesday, July 8th. Finally, DA Davidson set a $65.00 price target on Kura Sushi USA in a research report on Thursday, July 9th. Four research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $69.00.

Kura Sushi USA Price Performance

Shares of KRUS stock opened at $48.83 on Friday. The firm has a market cap of $593.28 million, a P/E ratio of -271.26 and a beta of 1.33. Kura Sushi USA has a 1-year low of $42.62 and a 1-year high of $87.99. The firm has a fifty day moving average of $49.59 and a two-hundred day moving average of $58.41.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report) last issued its earnings results on Tuesday, July 7th. The company reported $0.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.08. Kura Sushi USA had a negative net margin of 0.65% and a negative return on equity of 0.18%. The business had revenue of $85.92 million for the quarter, compared to analyst estimates of $86.45 million. On average, sell-side analysts expect that Kura Sushi USA will post -0.06 EPS for the current year.

Hedge Funds Weigh In On Kura Sushi USA

A number of large investors have recently bought and sold shares of KRUS. Raymond James Financial Inc. bought a new position in shares of Kura Sushi USA during the second quarter valued at approximately $29,000. Key Financial Inc lifted its holdings in shares of Kura Sushi USA by 720.0% in the 4th quarter. Key Financial Inc now owns 615 shares of the company's stock worth $32,000 after purchasing an additional 540 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in shares of Kura Sushi USA in the 4th quarter worth approximately $36,000. Caitong International Asset Management Co. Ltd boosted its position in Kura Sushi USA by 681.5% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 844 shares of the company's stock valued at $50,000 after purchasing an additional 736 shares during the period. Finally, Tower Research Capital LLC TRC boosted its position in Kura Sushi USA by 42.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 953 shares of the company's stock valued at $82,000 after purchasing an additional 284 shares during the period. 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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