Benchmark Reduces GEN Restaurant Group Price Target to $11.00

Analysts at Benchmark have revised their price target for GEN Restaurant Group (NASDAQ:GENK) from $14.00 down to $11.00. This announcement was made in a research note released on Friday. Despite the price adjustment, Benchmark continues to maintain a "buy" rating on the stock. This new price target implies a significant potential upside of 59.33% based on the company's recent closing price.

GEN Restaurant Group Stock Performance

During midday trading on Friday, shares of GENK experienced an increase of $1.81, reaching a price of $6.90. A total of 933,668 shares changed hands, notably surpassing the stock's average volume of 68,486 shares. Currently, the company's 50-day simple moving average stands at $6.43, while the 200-day average is $7.74. Over the past year, GEN Restaurant Group's stock has hit a low of $5.00 and a high of $14.46. The firm's market capitalization is approximately $226.45 million, with a price-to-earnings ratio of 40.18, and a beta value of 1.89, which indicates a higher volatility compared to the market. The company’s debt-to-equity ratio is 0.12, and its quick and current ratios are 0.87 and 0.91, respectively.

Recent Earnings Results

GEN Restaurant Group recently released its quarterly earnings data on March 6. For the quarter, the company reported an earnings loss of ($0.02) per share, slightly missing the consensus estimate of ($0.01) by a margin of $0.01. The company achieved a net profit margin of 0.39% and a return on equity of 1.83%. Their total revenue for the quarter was $54.65 million, outperforming the consensus estimate of $49.77 million. Analysts predict that GEN Restaurant Group will report earnings per share of $0.01 for the current fiscal year.

Insider Transactions

In other news, CEO David Wook Jin Kim purchased 4,277 shares of GEN Restaurant Group on December 19. The shares were acquired at an average price of $7.36 each, with the total investment amounting to $31,478.72. Following this transaction, the CEO holds a total of 151,870 shares valued at approximately $1,117,763.20, marking a 2.90% increase in his ownership stake. This transaction has been reported to the Securities and Exchange Commission, with additional details available through legal filings. Furthermore, corporate insiders collectively own 61.13% of the company's outstanding shares.

Institutional Investments in GEN Restaurant Group

Numerous institutional investors have recently adjusted their positions in GEN Restaurant Group. Bard Associates Inc. increased its holdings in the third quarter by 1.7%, now owning 175,676 shares valued at $1,483,000 after acquiring an additional 2,956 shares. Wasatch Advisors LP significantly raised its stake by 72.7%, totaling 838,451 shares estimated at $7,077,000 after purchasing another 352,922 shares. Portolan Capital Management LLC increased its holdings by 1.8%, owning 372,759 shares worth $3,146,000 post an extra purchase of 6,641 shares. Geode Capital Management LLC's stake was raised by 5.5%, bringing their total to 46,496 shares valued at $393,000. Additionally, during the fourth quarter, Sanders Morris Harris LLC enhanced its position by 14.3%, now owning 219,990 shares worth $1,628,000 after acquiring an extra 27,591 shares. In total, hedge funds and institutional investors collectively own 10.22% of GEN Restaurant Group's stock.

About GEN Restaurant Group

GEN Restaurant Group, Inc. is engaged in operating restaurants across multiple states, including California, Arizona, Hawaii, Nevada, Texas, New York, and Florida. Their offerings primarily include meats, poultry, and seafood. The company was established in 2011 and is headquartered in Cerritos, California.

Conclusion

Given the recent price target reduction by Benchmark analysts and the overall performance of GEN Restaurant Group, investors may want to consider their positions in this stock carefully. Despite the downgrade, the continued buy rating and significant potential upside point to a possible investment opportunity.

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