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

Key Points

• Zacks Research downgraded ONE Group Hospitality to “strong sell” from “hold,” while Weiss Ratings maintained a sell rating. Analysts’ consensus is “Reduce,” with an average price target of $4.00.
• Shares opened at $1.68, near their one-year low of $1.65, with a market capitalization of about $53 million. The stock has a negative P/E ratio and trades below both its 50-day and 200-day moving averages.
• The company reported a quarterly loss of $0.20 per share, missing estimates by $0.32, while revenue also fell short of expectations. Ongoing negative margins and downward revisions to earnings forecasts continue to weigh on the outlook.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Thursday,Zacks.com reports.

Separately, Weiss Ratings reiterated a "sell (e+)" rating on shares of ONE Group Hospitality in a research note on Friday, July 10th. One research analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $4.00.

ONE Group Hospitality Price Performance

NASDAQ STKS opened at $1.68 on Thursday. The business has a 50 day simple moving average of $1.86 and a 200 day simple moving average of $1.92. ONE Group Hospitality has a one year low of $1.65 and a one year high of $3.38. The stock has a market capitalization of $53.02 million, a P/E ratio of -0.42 and a beta of 1.36.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The restaurant operator reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.32). The business had revenue of $212.82 million during the quarter, compared to analyst estimates of $218.55 million. ONE Group Hospitality had a negative net margin of 11.15% and a negative return on equity of 6.77%. Equities analysts expect that ONE Group Hospitality will post -0.69 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in STKS. Bank of America Corp DE increased its position in shares of ONE Group Hospitality by 18.7% during the fourth quarter. Bank of America Corp DE now owns 34,782 shares of the restaurant operator's stock worth $101,000 after acquiring an additional 5,477 shares in the last quarter. Vanguard Group Inc. boosted its stake in ONE Group Hospitality by 1.2% during the 3rd quarter. Vanguard Group Inc. now owns 1,227,751 shares of the restaurant operator's stock valued at $3,634,000 after purchasing an additional 14,765 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in ONE Group Hospitality by 35.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 70,839 shares of the restaurant operator's stock valued at $210,000 after purchasing an additional 18,435 shares during the last quarter. Group One Trading LLC boosted its stake in ONE Group Hospitality by 18,965.0% during the 3rd quarter. Group One Trading LLC now owns 19,065 shares of the restaurant operator's stock valued at $56,000 after purchasing an additional 18,965 shares during the last quarter. Finally, Qube Research & Technologies Ltd bought a new stake in ONE Group Hospitality during the 2nd quarter worth approximately $132,000. Institutional investors own 29.14% of the company's stock.

More ONE Group Hospitality News

Here are the key news stories impacting ONE Group Hospitality this week:

• Positive Sentiment: Sidoti raised its Q1 2027 EPS forecast to $0.06 from a projected loss of $0.04 and increased its Q3 2027 forecast to a loss of $0.25 from $0.27, indicating some improvement in selected periods.
• Neutral Sentiment: Noble Financial expects The ONE Group Hospitality to report losses of $0.52 per share in Q3 2026 and $0.12 per share in Q4 2026, while forecasting a $0.59-per-share loss for full-year 2027. These estimates provide additional visibility but remain materially negative.
• Neutral Sentiment: The company’s Q2 2026 earnings-call transcript is available for investors seeking management commentary on operating trends, restaurant demand and the path toward profitability. The ONE Group Hospitality Q2 2026 Earnings Call Transcript
• Negative Sentiment: Sidoti cut its FY2026 EPS estimate to a loss of $0.95 from $0.69, reduced its Q3 2026 estimate to a loss of $0.51 from $0.44, lowered Q2 2027 to a loss of $0.08 from projected earnings of $0.09, and trimmed Q4 2026 to $0.06 from $0.09.
• Negative Sentiment: Noble Financial also lowered its Q3 2026 forecast to a loss of $0.52 from $0.49 and reduced its FY2027 estimate to a loss of $0.59 from $0.56. The concentration of downward revisions reinforces concerns about near-term profitability.
• Negative Sentiment: The company’s latest reported quarter showed a $0.20-per-share loss that missed expectations by $0.32, alongside revenue below estimates. Persistent losses and negative margins add to the bearish reaction to the estimate cuts.

ONE Group Hospitality Company Profile

ONE Group Hospitality Inc is a full-service hospitality company primarily engaged in the development, ownership and operation of upscale restaurant and lounge concepts. The company's flagship brand, STK, combines a modern steakhouse menu with a high-energy lounge atmosphere, offering signature cuts of beef, fresh seafood, sushi selections, craft cocktails and an extensive wine program. ONE Group's concept emphasizes a seamless blend of fine dining and nightlife, catering to guests seeking both culinary excellence and an immersive social experience.

Headquartered in El Segundo, California, ONE Group deploys a mixed model of company-owned and franchised locations across multiple markets.

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