ONE Group Hospitality (NASDAQ:STKS) Stock Rating Lowered by Zacks Research

ONE Group Hospitality (NASDAQ:STKS) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday,Zacks.com reports.

STKS has been the subject of a number of other reports. Weiss Ratings restated a “sell (d-)” rating on shares of ONE Group Hospitality in a research note on Thursday, January 22nd. Lake Street Capital lowered their price objective on ONE Group Hospitality from $5.00 to $4.00 and set a “buy” rating for the company in a research note on Friday, January 16th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, ONE Group Hospitality presently has an average rating of “Reduce” and a consensus price target of $4.50.

ONE Group Hospitality Stock Up 1.6%

Shares of NASDAQ:STKS opened at $1.91 on Wednesday. ONE Group Hospitality has a fifty-two week low of $1.65 and a fifty-two week high of $5.26. The firm has a 50-day simple moving average of $1.82 and a 200 day simple moving average of $1.98. The company has a market cap of $59.94 million, a PE ratio of -0.47, a P/E/G ratio of 0.24 and a beta of 1.29.

ONE Group Hospitality (NASDAQ:STKS) last announced its quarterly earnings data on Wednesday, May 6th. The restaurant operator reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.32). ONE Group Hospitality had a negative net margin of 11.15% and a negative return on equity of 8.53%. The business had revenue of $212.82 million for the quarter, compared to the consensus estimate of $218.55 million. As a group, research analysts forecast that ONE Group Hospitality will post 0.38 EPS for the current fiscal year.

Institutional Investors Weigh In On ONE Group Hospitality

A number of hedge funds have recently made changes to their positions in STKS. McGowan Group Asset Management Inc. raised its holdings in shares of ONE Group Hospitality by 12.7% during the fourth quarter. McGowan Group Asset Management Inc. now owns 945,000 shares of the restaurant operator’s stock valued at $1,654,000 after buying an additional 106,665 shares during the last quarter. Jane Street Group LLC raised its holdings in shares of ONE Group Hospitality by 423.5% during the second quarter. Jane Street Group LLC now owns 101,174 shares of the restaurant operator’s stock valued at $410,000 after buying an additional 81,848 shares during the last quarter. Piedmont Capital Management LLC NC bought a new position in shares of ONE Group Hospitality in the fourth quarter worth $104,000. CastleKnight Management LP grew its stake in shares of ONE Group Hospitality by 4.7% in the fourth quarter. CastleKnight Management LP now owns 1,286,991 shares of the restaurant operator’s stock worth $2,252,000 after purchasing an additional 58,015 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new position in shares of ONE Group Hospitality in the third quarter worth $170,000. Institutional investors own 29.14% of the company’s stock.

ONE Group Hospitality News Summary

Here are the key news stories impacting ONE Group Hospitality this week:

• Positive Sentiment: Q2 operating income rose ~30% and management highlighted expansion driving margin improvement, a sign the company’s unit growth and cost leverage are working and could support future profitability. The ONE Group Q2 Operating Income Soars 30% Amid Expansion
• Neutral Sentiment: FULL-YEAR revenue guidance of $840M–$855M is roughly in line with consensus, indicating management expects recovery/steady growth for fiscal 2026 even as quarterly timing varies. The ONE Group projects Q2 2026 revenue of $202M-$206M while targeting $840M-$855M for fiscal 2026
• Negative Sentiment: Q2 revenue guidance of $202M–$206M comes in below the consensus of ~$213.8M, raising concerns about near-term top-line momentum and making the upcoming quarter a risk for the stock. The ONE Group projects Q2 2026 revenue of $202M-$206M while targeting $840M-$855M for fiscal 2026
• Negative Sentiment: Q1 results disappointed: reported EPS of ($0.20) missed the $0.12 consensus and revenue of $212.8M trailed estimates, leaving the company with a negative net margin and pressuring near-term sentiment. The ONE Group Hospitality, Inc. (STKS) Reports Q1 Loss, Lags Revenue Estimates
• Negative Sentiment: Analyst revisions: Sidoti cut Q3 2026 EPS estimates (and trimmed other near-term forecasts), signaling reduced confidence among some sell-side analysts and adding downward pressure on expectations.

About ONE Group Hospitality

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.