Kura Sushi USA (NASDAQ:KRUS) Stock Price Down 6.7% - Here's Why

Key Points

• Shares fell ~6.7% to about $59.72 on Friday on thin trading (79,302 shares vs. average 291,093).
• Earnings miss: Kura Sushi reported Q results of ($0.23) EPS vs. analysts' ($0.17) estimate (miss of $0.06) while revenue was roughly in line at $73.46M; the company remains unprofitable with a negative net margin and ROE.
• Analyst sentiment is mixed — the consensus is an "Hold" with an average target of $78 — and an insider (Hajime Uba) recently sold 9,874 shares; institutional investors hold about 65.5% of the stock.

Kura Sushi USA, Inc. (NASDAQ:KRUS - Get Free Report) shares traded down 6.7% during trading on Friday . The company traded as low as $58.76 and last traded at $59.72. 79,302 shares traded hands during trading, a decline of 73% from the average session volume of 291,093 shares. The stock had previously closed at $64.00.

Analyst Ratings Changes

A number of equities analysts recently issued reports on KRUS shares. Wall Street Zen lowered shares of Kura Sushi USA from a "hold" rating to a "strong sell" rating in a research report on Saturday, January 10th. Lake Street Capital reiterated a "buy" rating and issued a $70.00 price objective on shares of Kura Sushi USA in a report on Thursday, January 8th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Kura Sushi USA in a report on Monday, December 29th. Citigroup reissued a "neutral" rating on shares of Kura Sushi USA in a report on Thursday, January 8th. Finally, Benchmark reaffirmed a "buy" rating on shares of Kura Sushi USA in a research note 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 stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $78.00.

Kura Sushi USA Trading Down 10.1%

The stock has a fifty day moving average of $68.10 and a 200-day moving average of $64.16. The firm has a market capitalization of $696.69 million, a price-to-earnings ratio of -174.33 and a beta of 1.68.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report) last released its quarterly earnings results on Wednesday, January 7th. The company reported ($0.23) earnings per share for the quarter, missing analysts' consensus estimates of ($0.17) by ($0.06). The company had revenue of $73.46 million during the quarter, compared to analyst estimates of $72.98 million. Kura Sushi USA had a negative net margin of 1.37% and a negative return on equity of 0.63%. During the same quarter last year, the business earned ($0.08) EPS. As a group, equities research analysts forecast that Kura Sushi USA, Inc. will post 0.22 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Trading of Kura Sushi USA

Hedge funds have recently modified their holdings of the business. Divisadero Street Capital Management LP acquired a new position in Kura Sushi USA during the third quarter valued at $34,586,000. Granahan Investment Management LLC increased its holdings in shares of Kura Sushi USA by 125.4% in the 3rd quarter. Granahan Investment Management LLC now owns 671,012 shares of the company's stock valued at $39,865,000 after purchasing an additional 373,354 shares during the period. Balyasny Asset Management L.P. acquired a new position in shares of Kura Sushi USA in the 4th quarter valued at about $19,194,000. Hood River Capital Management LLC purchased a new stake in shares of Kura Sushi USA in the second quarter worth approximately $31,561,000. Finally, Woodline Partners LP boosted its holdings in shares of Kura Sushi USA by 270.3% during the third quarter. Woodline Partners LP now owns 292,014 shares of the company's stock worth $17,349,000 after purchasing an additional 213,158 shares during the period. Hedge funds and other institutional investors own 65.49% of the company's stock.

Kura Sushi USA Company Profile

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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