ONE Group Hospitality (NASDAQ:STKS) Shares Cross Below 200 Day Moving Average - Time to Sell?

Key Points

• The shares of ONE Group Hospitality (NASDAQ:STKS) dropped below their 200-day moving average, with a current price of $2.47 compared to the average of $3.26.
• Analyst ratings have notably declined, with Piper Sandler reducing their target price to $5.00 and Zacks Research downgrading the stock to a "strong sell" rating.
• The company reported a loss in earnings per share of $0.05, missing estimates, and it has a negative net margin of -1.91%.

The ONE Group Hospitality, Inc. (NASDAQ:STKS - Get Free Report) shares crossed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $3.26 and traded as low as $2.47. ONE Group Hospitality shares last traded at $2.47, with a volume of 161,833 shares.

Analyst Ratings Changes

Several equities research analysts have weighed in on STKS shares. Zacks Research upgraded ONE Group Hospitality from a "strong sell" rating to a "hold" rating in a report on Thursday. 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, Wall Street Zen downgraded ONE Group Hospitality from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $4.63.

ONE Group Hospitality Price Performance

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's 50 day simple moving average is $2.95 and its two-hundred day simple moving average is $3.26. The firm has a market capitalization of $77.55 million, a PE ratio of -1.67, a price-to-earnings-growth ratio of 0.39 and a beta of 1.98.

ONE Group Hospitality (NASDAQ:STKS - Get Free Report) last released its earnings results on Tuesday, August 5th. The restaurant operator reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.03). The business had revenue of $203.91 million during the quarter, compared to analysts' expectations 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. On average, sell-side analysts forecast that The ONE Group Hospitality, Inc. will post -0.18 EPS for the current year.

Insiders Place Their Bets

In related news, insider David Kanen sold 160,000 shares of ONE Group Hospitality stock in a transaction that occurred 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 completion of the sale, the insider owned 1,823,266 shares in the company, valued at approximately $8,569,350.20. This trade represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last three months, insiders have sold 350,091 shares of company stock valued at $1,669,918. 19.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ONE Group Hospitality

Several hedge funds and other institutional investors have recently added to or reduced their stakes in STKS. Nantahala Capital Management LLC grew its stake 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 worth $6,342,000 after purchasing an additional 33,690 shares in the last quarter. General Equity Holdings LP grew its position in shares of ONE Group Hospitality by 37.7% in the second quarter. General Equity Holdings LP now owns 439,107 shares of the restaurant operator's stock valued at $1,778,000 after purchasing an additional 120,164 shares during the last quarter. Northern Trust Corp lifted its stake in shares of ONE Group Hospitality by 3.5% during the fourth quarter. Northern Trust Corp now owns 190,869 shares of the restaurant operator's stock valued at $554,000 after buying an additional 6,520 shares during the period. Jane Street Group LLC boosted its holdings in shares of ONE Group Hospitality by 423.5% in the 2nd quarter. Jane Street Group LLC now owns 101,174 shares of the restaurant operator's stock valued at $410,000 after purchasing an additional 81,848 shares during the last quarter. Finally, Benjamin Edwards Inc. purchased a new position in shares of ONE Group Hospitality in the 1st quarter valued at $252,000. Hedge funds and other institutional investors 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.