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

Zacks Research lowered shares of ONE Group Hospitality (NASDAQ:STKS) from a hold rating to a strong sell rating in a research report released 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 equities research analyst has rated the stock with a Buy rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $4.00.

ONE Group Hospitality Trading Down 2.3%

Shares of NASDAQ STKS opened at $1.68 on Thursday. The stock has a market capitalization of $53.02 million, a PE ratio of -0.42 and a beta of 1.36. The stock’s fifty day simple moving average is $1.86 and its two-hundred day simple moving average is $1.92. ONE Group Hospitality has a 12-month low of $1.65 and a 12-month high of $3.38.

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

Institutional Trading of ONE Group Hospitality

Several hedge funds and other institutional investors have recently made changes to their positions in STKS. Bank of America Corp DE grew its stake in ONE Group Hospitality by 18.7% during 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 last quarter. Vanguard Group Inc. raised its stake in ONE Group Hospitality by 1.2% in the third quarter. Vanguard Group Inc. now owns 1,227,751 shares of the restaurant operator’s stock valued at $3,634,000 after buying an additional 14,765 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in ONE Group Hospitality by 35.2% in the third quarter. Dimensional Fund Advisors LP now owns 70,839 shares of the restaurant operator’s stock worth $210,000 after acquiring an additional 18,435 shares in the last quarter. Group One Trading LLC grew its stake in shares of ONE Group Hospitality by 18,965.0% during the third quarter. Group One Trading LLC now owns 19,065 shares of the restaurant operator’s stock worth $56,000 after acquiring an additional 18,965 shares during the last quarter. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of ONE Group Hospitality during the second quarter worth about $132,000. Hedge funds and other institutional investors own 29.14% of the company’s stock.

ONE Group Hospitality News Roundup

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.