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

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

A number of other equities analysts have also recently issued reports on STKS. Lake Street Capital dropped their target price on ONE Group Hospitality from $5.00 to $4.00 and set a “buy” rating for the company in a report on Friday, January 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of ONE Group Hospitality in a report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $4.50.

ONE Group Hospitality Stock Up 1.6%

ONE Group Hospitality stock opened at $1.91 on Wednesday. The business has a 50 day moving average price of $1.82 and a two-hundred day moving average price of $1.98. The stock has a market cap of $59.94 million, a price-to-earnings ratio of -0.47, a price-to-earnings-growth ratio of 0.24 and a beta of 1.29. ONE Group Hospitality has a 12 month low of $1.65 and a 12 month high of $5.26.

ONE Group Hospitality (NASDAQ:STKS) last posted 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 firm had revenue of $212.82 million during the quarter, compared to analyst estimates of $218.55 million. ONE Group Hospitality had a negative net margin of 11.15% and a negative return on equity of 8.53%. On average, analysts expect that ONE Group Hospitality will post 0.38 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ONE Group Hospitality

A number of hedge funds have recently modified their holdings of STKS. McGowan Group Asset Management Inc. raised its holdings in shares of ONE Group Hospitality by 12.7% in the 4th quarter. McGowan Group Asset Management Inc. now owns 945,000 shares of the restaurant operator’s stock worth $1,654,000 after buying an additional 106,665 shares in the last quarter. Jane Street Group LLC raised its holdings in shares of ONE Group Hospitality by 423.5% in the 2nd quarter. Jane Street Group LLC now owns 101,174 shares of the restaurant operator’s stock worth $410,000 after buying an additional 81,848 shares in the last quarter. Piedmont Capital Management LLC NC acquired a new position in shares of ONE Group Hospitality in the 4th quarter worth approximately $104,000. CastleKnight Management LP raised its holdings in shares of ONE Group Hospitality by 4.7% in the 4th quarter. CastleKnight Management LP now owns 1,286,991 shares of the restaurant operator’s stock worth $2,252,000 after buying an additional 58,015 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new stake in ONE Group Hospitality during the 3rd quarter worth approximately $170,000. 29.14% of the stock is owned by institutional investors and hedge funds.

ONE Group Hospitality News Roundup

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.