ONE Group Hospitality (NASDAQ:STKS) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• ONE Group Hospitality has been downgraded to a "strong sell" rating by Zacks Research, reflecting significant concern from analysts regarding the company's performance.
• The company's recent quarterly earnings report showed an earnings per share (EPS) of $0.05, missing expectations of $0.08 and suggesting challenges in meeting revenue forecasts.
• Insider activity indicates a lack of confidence, with significant share sales; for instance, insider David Kanen sold 160,000 shares worth $752,000, decreasing his stake in the company.

Zacks Research downgraded shares of ONE Group Hospitality (NASDAQ:STKS - Free Report) from a hold rating to a strong sell rating in a report released on Wednesday, August 20th,Zacks.com reports.

Several other research analysts also recently commented on STKS. Wall Street Zen downgraded ONE Group Hospitality from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Piper Sandler lowered their price objective on ONE Group Hospitality from $6.00 to $5.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. Finally, Noble Financial upgraded ONE Group Hospitality to a "strong-buy" rating in a research report on Wednesday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, ONE Group Hospitality currently has a consensus rating of "Moderate Buy" and an average target price of $4.63.

ONE Group Hospitality Stock Performance

NASDAQ STKS traded up $0.06 during trading on Wednesday, hitting $2.91. The company's stock had a trading volume of 15,347 shares, compared to its average volume of 112,566. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 16.52. The firm has a 50 day moving average price of $3.56 and a 200 day moving average price of $3.33. The firm has a market cap of $89.94 million, a P/E ratio of -1.93, a price-to-earnings-growth ratio of 0.44 and a beta of 2.11. ONE Group Hospitality has a 52 week low of $2.37 and a 52 week high of $5.26.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The restaurant operator reported $0.05 EPS for the quarter, missing the consensus estimate of $0.08 by ($0.03). The business had revenue of $203.91 million during the quarter, compared to the consensus estimate of $207.95 million. ONE Group Hospitality had a positive return on equity of 69.82% and a negative net margin of 1.91%. ONE Group Hospitality has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts forecast that ONE Group Hospitality will post -0.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ONE Group Hospitality news, insider David Kanen sold 160,000 shares of the stock in a transaction dated Wednesday, July 9th. The stock was sold at an average price of $4.70, for a total value of $752,000.00. Following the transaction, the insider owned 1,823,266 shares of the company's stock, valued at approximately $8,569,350.20. This represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders sold a total of 350,091 shares of company stock valued at $1,669,918 over the last quarter. Corporate insiders own 19.70% of the company's stock.

Institutional Investors Weigh In On ONE Group Hospitality

Several large investors have recently modified their holdings of the business. Nantahala Capital Management LLC increased its holdings in shares of ONE Group Hospitality by 1.6% in the first quarter. Nantahala Capital Management LLC now owns 2,121,084 shares of the restaurant operator's stock worth $6,342,000 after acquiring an additional 33,690 shares in the last quarter. CastleKnight Management LP grew its holdings in shares of ONE Group Hospitality by 9.4% during the fourth quarter. CastleKnight Management LP now owns 1,172,074 shares of the restaurant operator's stock worth $3,399,000 after buying an additional 100,300 shares in the last quarter. McGowan Group Asset Management Inc. bought a new position in shares of ONE Group Hospitality during the fourth quarter worth about $2,204,000. Geode Capital Management LLC grew its holdings in shares of ONE Group Hospitality by 1.6% during the fourth quarter. Geode Capital Management LLC now owns 506,337 shares of the restaurant operator's stock worth $1,469,000 after buying an additional 8,162 shares in the last quarter. Finally, General Equity Holdings LP grew its holdings in shares of ONE Group Hospitality by 37.7% during the second quarter. General Equity Holdings LP now owns 439,107 shares of the restaurant operator's stock worth $1,778,000 after buying an additional 120,164 shares in the last quarter. 29.14% of the stock is currently owned by institutional investors.

About ONE Group Hospitality

The ONE Group Hospitality, Inc, a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations.