ONE Group Hospitality (NASDAQ:STKS) Stock Crosses Below 200-Day Moving Average - Here's Why

Key Points

• ONE Group Hospitality's shares fell below the 200-day moving average of $3.32, trading as low as $2.72 before closing at $2.79 with a volume of 73,328 shares.
• Equity analysts have issued several downgrades, with Zacks Research cutting the stock from a "hold" to a "strong sell" rating, while Piper Sandler reduced its target price from $6.00 to $5.00.
• The company reported Q2 earnings of $0.05 EPS, missing expectations, and had revenue of $203.91 million, below the $207.95 million estimate.

Shares of The ONE Group Hospitality, Inc. (NASDAQ:STKS - Get Free Report) crossed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $3.32 and traded as low as $2.72. ONE Group Hospitality shares last traded at $2.79, with a volume of 73,328 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Piper Sandler reduced their price objective on shares of 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. Zacks Research downgraded shares of ONE Group Hospitality from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 20th. Finally, Wall Street Zen downgraded shares of ONE Group Hospitality from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $4.63.

ONE Group Hospitality Stock Up 1.1%

The stock's 50-day moving average price is $3.50 and its two-hundred day moving average price is $3.32. The stock has a market capitalization of $86.38 million, a P/E ratio of -1.86, a P/E/G ratio of 0.44 and a beta of 1.98. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 16.52.

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). ONE Group Hospitality had a negative net margin of 1.91% and a positive return on equity of 69.82%. The company had revenue of $203.91 million for 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. As a group, research analysts expect that The ONE Group Hospitality, Inc. will post -0.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider David Kanen sold 160,000 shares of the firm's 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 transaction, the insider directly owned 1,823,266 shares of the company's stock, valued at approximately $8,569,350.20. This trade represents a 8.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last ninety days, 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.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of STKS. Wells Fargo & Company MN boosted its holdings in ONE Group Hospitality by 51.7% in the 4th quarter. Wells Fargo & Company MN now owns 9,732 shares of the restaurant operator's stock worth $28,000 after buying an additional 3,316 shares during the period. Empirical Finance LLC bought a new position in ONE Group Hospitality in the 2nd quarter worth approximately $63,000. Quadrature Capital Ltd bought a new position in ONE Group Hospitality in the 2nd quarter worth approximately $100,000. Bank of America Corp DE boosted its holdings in ONE Group Hospitality by 18.7% in the 4th quarter. Bank of America Corp DE now owns 34,782 shares of the restaurant operator's stock worth $101,000 after buying an additional 5,477 shares during the period. Finally, Qube Research & Technologies Ltd bought a new position in ONE Group Hospitality in the 2nd quarter worth approximately $132,000. 29.14% of the stock is 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.