Kura Sushi USA (NASDAQ:KRUS) Trading Down 6.7% – Should You Sell?

Kura Sushi USA, Inc. (NASDAQ:KRUS) shares dropped 6.7% on Friday . The stock traded as low as $58.76 and last traded at $59.72. Approximately 79,302 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 291,093 shares. The stock had previously closed at $64.00.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on KRUS shares. Royal Bank Of Canada set a $85.00 target price on shares of Kura Sushi USA in a research report on Tuesday, January 20th. Wall Street Zen lowered shares of Kura Sushi USA from a “hold” rating to a “strong sell” rating in a research report on Saturday, January 10th. Barclays dropped their price target on shares of Kura Sushi USA from $67.00 to $62.00 and set an “equal weight” rating on the stock in a research note on Wednesday, January 7th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Kura Sushi USA in a report on Monday, December 29th. Finally, Loop Capital set a $70.00 price objective on shares of Kura Sushi USA in a research note on Thursday, January 8th. Five investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Kura Sushi USA has an average rating of “Hold” and a consensus price target of $78.00.

Kura Sushi USA Stock Performance

The firm has a 50 day simple moving average of $68.12 and a 200 day simple moving average of $63.92. The firm has a market cap of $698.38 million, a P/E ratio of -174.76 and a beta of 1.68.

Kura Sushi USA (NASDAQ:KRUS) last posted its earnings results on Wednesday, January 7th. The company reported ($0.23) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.17) by ($0.06). Kura Sushi USA had a negative net margin of 1.37% and a negative return on equity of 0.63%. The company had revenue of $73.46 million for the quarter, compared to analysts’ expectations of $72.98 million. During the same period in the previous year, the firm earned ($0.08) EPS. Sell-side analysts predict that Kura Sushi USA, Inc. will post 0.22 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Hajime Uba sold 9,874 shares of the business’s stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $72.93, for a total transaction of $720,110.82. Following the completion of the transaction, the insider owned 6,026 shares of the company’s stock, valued at approximately $439,476.18. The trade was a 62.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.28% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Stephens Inc. AR increased its holdings in shares of Kura Sushi USA by 15.3% in the fourth quarter. Stephens Inc. AR now owns 839,308 shares of the company’s stock worth $43,921,000 after purchasing an additional 111,502 shares during the period. Granahan Investment Management LLC boosted its stake in Kura Sushi USA by 17.3% during the fourth quarter. Granahan Investment Management LLC now owns 787,108 shares of the company’s stock valued at $41,189,000 after buying an additional 116,096 shares during the period. Divisadero Street Capital Management LP bought a new stake in Kura Sushi USA during the third quarter valued at $34,586,000. Balyasny Asset Management L.P. purchased a new position in Kura Sushi USA during the fourth quarter worth about $19,194,000. Finally, Hood River Capital Management LLC purchased a new position in Kura Sushi USA during the second quarter worth about $31,561,000. 65.49% of the stock is owned by institutional investors.

Kura Sushi USA Company Profile

Kura Sushi USA, Inc operates Japanese‐style revolving sushi restaurants across the United States. The company’s concept centers on delivering a modern sushi dining experience by combining fresh ingredients with automated conveyer belt and plate‐return systems. Guests can choose from a broad menu that includes nigiri, sashimi, maki rolls, tempura, udon noodles and chef‐inspired seasonal dishes, all served directly from the conveyor belt or ordered on tabletop touchscreens.

Each restaurant integrates patented technology to ensure food quality and operational efficiency.