ONE Group Hospitality (NASDAQ:STKS) Downgraded to “Strong Sell” Rating 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 research report issued to clients and investors 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 research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the company. According to MarketBeat.com, ONE Group Hospitality has an average rating of “Reduce” and a consensus price target of $4.00.

ONE Group Hospitality Price Performance

Shares of STKS stock opened at $1.68 on Thursday. The firm has a 50-day moving average of $1.86 and a 200-day moving average of $1.92. The company has a market cap of $53.02 million, a P/E ratio of -0.42 and a beta of 1.36. ONE Group Hospitality has a one year low of $1.65 and a one year 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) 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 6.77%. The firm had revenue of $212.82 million for the quarter, compared to the consensus estimate of $218.55 million. As a group, research analysts expect that ONE Group Hospitality will post -0.69 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ONE Group Hospitality

Institutional investors have recently added to or reduced their stakes in the stock. Group One Trading LLC raised its position in ONE Group Hospitality by 18,965.0% in 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 period. Squarepoint Ops LLC bought a new position in shares of ONE Group Hospitality during the 3rd quarter valued at approximately $97,000. Bank of America Corp DE grew its position in shares of 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 valued at $101,000 after acquiring an additional 5,477 shares during the period. Piedmont Capital Management LLC NC purchased a new stake in shares of ONE Group Hospitality during the 4th quarter worth approximately $104,000. Finally, Qube Research & Technologies Ltd bought a new stake in shares of ONE Group Hospitality in the 2nd quarter worth approximately $132,000. Institutional investors own 29.14% of the company’s stock.

Key ONE Group Hospitality News

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.

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.