ONE Group Hospitality (NASDAQ:STKS) Lowered to Sell Rating by Wall Street Zen

Key Points

• ONE Group Hospitality's stock rating was downgraded from "hold" to a "sell" by Wall Street Zen, while some analysts still maintain a mix of "buy" and "strong buy" ratings.
• The company reported quarterly earnings results that missed expectations, with an EPS of $0.05 compared to the consensus estimate of $0.08, and a negative net margin of 1.91%.
• Insider David Kanen sold 160,000 shares of the company, indicating potential concerns about stock performance, as overall insider sales reached 350,091 shares valued at nearly $1.67 million in the last quarter.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

A number of other research firms have also recently commented on STKS. Noble Financial raised ONE Group Hospitality to a "strong-buy" rating in a report on Wednesday, April 23rd. Piper Sandler dropped their target price on ONE Group Hospitality from $6.00 to $5.00 and set a "neutral" rating for the company in a research report on Wednesday, August 6th. Finally, Northcoast Research initiated coverage on ONE Group Hospitality in a research report on Friday, April 11th. They set a "buy" rating and a $5.00 target price for the company. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $4.63.

ONE Group Hospitality Stock Up 0.9%

Shares of ONE Group Hospitality stock traded up $0.03 during midday trading on Friday, hitting $2.76. The company had a trading volume of 11,859 shares, compared to its average volume of 115,763. The company has a debt-to-equity ratio of 16.52, a quick ratio of 0.28 and a current ratio of 0.35. The stock has a market capitalization of $85.28 million, a P/E ratio of -1.84, a P/E/G ratio of 0.43 and a beta of 2.11. The company has a 50 day moving average of $3.73 and a 200 day moving average of $3.39. 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 announced its earnings results on Tuesday, August 5th. The restaurant operator reported $0.05 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. On average, equities analysts predict that ONE Group Hospitality will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In other ONE Group Hospitality news, insider David Kanen sold 160,000 shares of ONE Group Hospitality stock in a transaction on Wednesday, July 9th. The shares were sold at an average price of $4.70, for a total value of $752,000.00. Following the transaction, the insider directly owned 1,823,266 shares of the company's stock, valued at approximately $8,569,350.20. The trade was a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have sold a total of 350,091 shares of company stock valued at $1,669,918 over the last ninety days. Insiders own 19.70% of the company's stock.

Hedge Funds Weigh In On ONE Group Hospitality

Several institutional investors and hedge funds have recently bought and sold shares of the company. Quadrature Capital Ltd purchased a new position in ONE Group Hospitality in the second quarter worth $100,000. Empirical Finance LLC purchased a new stake in shares of ONE Group Hospitality during the second quarter valued at $63,000. AdvisorShares Investments LLC purchased a new stake in shares of ONE Group Hospitality during the second quarter valued at $170,000. Y Intercept Hong Kong Ltd purchased a new stake in shares of ONE Group Hospitality during the second quarter valued at $274,000. Finally, Nantahala Capital Management LLC grew its holdings in shares of ONE Group Hospitality by 1.6% during the first quarter. Nantahala Capital Management LLC now owns 2,121,084 shares of the restaurant operator's stock valued at $6,342,000 after buying an additional 33,690 shares during the last quarter. 29.14% of the stock is owned by hedge funds and other institutional investors.

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.