ONE Group Hospitality (NASDAQ:STKS) Lowered 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.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

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

ONE Group Hospitality Stock Performance

ONE Group Hospitality stock opened at $2.74 on Wednesday. ONE Group Hospitality has a 52 week low of $2.37 and a 52 week high of $5.26. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 16.52. The stock has a market cap of $84.82 million, a P/E ratio of -1.83, a price-to-earnings-growth ratio of 0.42 and a beta of 2.11. The stock has a 50 day moving average of $3.60 and a 200-day moving average of $3.34.

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

Insider Activity

In related news, insider David Kanen sold 160,000 shares of the business's stock in a transaction that occurred on Wednesday, July 9th. The stock was sold at an average price of $4.70, for a total transaction of $752,000.00. Following the completion of the transaction, the insider owned 1,823,266 shares in the company, valued at $8,569,350.20. The trade was a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last 90 days, insiders sold 350,091 shares of company stock valued at $1,669,918. Company insiders own 25.10% of the company's stock.

Hedge Funds Weigh In On ONE Group Hospitality

Hedge funds and other institutional investors have recently modified their holdings of the company. Nantahala Capital Management LLC boosted its stake in ONE Group Hospitality by 1.6% during the 1st quarter. Nantahala Capital Management LLC now owns 2,121,084 shares of the restaurant operator's stock valued at $6,342,000 after purchasing an additional 33,690 shares during the period. CastleKnight Management LP boosted its position 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 during the period. McGowan Group Asset Management Inc. bought a new position in ONE Group Hospitality in the 4th quarter worth approximately $2,204,000. Geode Capital Management LLC increased its position in ONE Group Hospitality by 1.6% in the 4th quarter. Geode Capital Management LLC now owns 506,337 shares of the restaurant operator's stock valued at $1,469,000 after acquiring an additional 8,162 shares during the period. Finally, General Equity Holdings LP boosted its position in ONE Group Hospitality by 37.7% during the 2nd quarter. General Equity Holdings LP now owns 439,107 shares of the restaurant operator's stock worth $1,778,000 after acquiring an additional 120,164 shares during the period. Institutional investors and hedge funds own 29.14% of the company's stock.

ONE Group Hospitality Company Profile

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.

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