Kura Sushi USA (NASDAQ:KRUS) Hits New 52-Week Low - Time to Sell?

Key Points

• Kura Sushi USA shares fell to a new 52-week low of $40.64 and last traded at $41.08, down 1.7%, with the stock below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward caution: the consensus rating is “Hold” with a $69 target price, while recent actions included target-price cuts and ratings ranging from Buy to Sell.
• The company narrowly beat quarterly EPS expectations at $0.03 versus an expected loss of $0.05, but revenue came in slightly below estimates and profitability remained weak, with a negative net margin and analysts forecasting an annual loss.

Kura Sushi USA, Inc. (NASDAQ:KRUS - Get Free Report) shares hit a new 52-week low on Tuesday . The stock traded as low as $40.64 and last traded at $41.08, with a volume of 139633 shares changing hands. The stock had previously closed at $41.26.

Analyst Ratings Changes

A number of equities research analysts have weighed in on KRUS shares. Wall Street Zen upgraded shares of Kura Sushi USA from a "sell" rating to a "hold" rating in a research note on Saturday. Freedom Capital raised shares of Kura Sushi USA to a "hold" rating in a research note on Wednesday, July 1st. Citigroup decreased their target price on Kura Sushi USA from $64.00 to $59.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 8th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Kura Sushi USA in a research note on Friday, August 7th. Finally, DA Davidson set a $65.00 target price on Kura Sushi USA in a research report on Thursday, July 9th. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $69.00.

Kura Sushi USA Trading Down 1.7%

The firm has a market cap of $492.74 million, a PE ratio of -228.74 and a beta of 1.32. The business's 50-day simple moving average is $47.51 and its 200 day simple moving average is $53.81.

Kura Sushi USA (NASDAQ:KRUS - Get Free Report) last released its quarterly earnings results on Tuesday, July 7th. The company reported $0.03 EPS for the quarter, beating the consensus estimate of ($0.05) by $0.08. The business had revenue of $85.92 million during the quarter, compared to analyst estimates of $86.45 million. Kura Sushi USA had a negative net margin of 0.65% and a negative return on equity of 0.18%. Analysts expect that Kura Sushi USA, Inc. will post -0.06 earnings per share for the current year.

Institutional Trading of Kura Sushi USA

Several large investors have recently added to or reduced their stakes in the company. Sei Investments Co. lifted its position in Kura Sushi USA by 92.1% during the first quarter. Sei Investments Co. now owns 44,162 shares of the company's stock valued at $3,082,000 after purchasing an additional 21,174 shares during the period. Dimensional Fund Advisors LP grew its position in Kura Sushi USA by 15.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 187,906 shares of the company's stock worth $13,110,000 after purchasing an additional 25,031 shares during the period. Ranger Investment Management L.P. acquired a new stake in Kura Sushi USA during the 2nd quarter worth about $4,322,000. Meros Investment Management LP purchased a new position in shares of Kura Sushi USA during the 4th quarter valued at about $6,607,000. Finally, Stephens Inc. AR lifted its holdings in shares of Kura Sushi USA by 31.9% in the 1st quarter. Stephens Inc. AR now owns 1,107,263 shares of the company's stock valued at $77,276,000 after buying an additional 267,955 shares during the period. Hedge funds and other institutional investors own 65.49% of the company's stock.

Kura Sushi USA Company Profile

Kura Sushi USA, Inc operates technology-enabled Japanese restaurants in the United States under the Kura Revolving Sushi Bar name. Its restaurants use a conveyor-belt dining format that allows guests to select individual dishes as they pass by their tables, combining traditional sushi-bar service with an interactive dining experience.

The company's menu includes a variety of sushi and sashimi, specialty rolls, cooked Japanese dishes, appetizers, desserts and beverages. Kura Sushi USA also uses automation and other restaurant technologies, including touch-screen ordering and systems designed to support food delivery and table service.

Founded in 2008, Kura Sushi USA is affiliated with Kura Sushi, Inc, a Japan-based conveyor-belt sushi restaurant operator.

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