Wingstop Inc. (NASDAQ:WING) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment remains positive: Thirty-one brokerages give Wingstop an average “Moderate Buy” rating, with 22 buys and two strong buys. The average 12-month price target is approximately $241.81.
• Quarterly results were mixed: Wingstop reported adjusted earnings of $1.18 per share, beating estimates of $1.02, while revenue of $185.56 million fell short of forecasts but increased 6.5% year over year.
• Shares have declined significantly: WING opened at $110.52, near its 52-week low of $105.43 and well below its 52-week high of $302.80. The company also raised its quarterly dividend to $0.33 per share, representing a 1.2% yield.

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) have been given an average recommendation of "Moderate Buy" by the thirty-one ratings firms that are currently covering the company, MarketBeat reports. Two analysts have rated the stock with a sell rating, five have assigned a hold rating, twenty-two have assigned a buy rating and two have given a strong buy rating to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $241.8148.

Several research firms recently weighed in on WING. Stephens reissued an "overweight" rating and set a $200.00 price objective on shares of Wingstop in a report on Thursday, July 30th. Citigroup dropped their target price on Wingstop from $237.00 to $208.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. UBS Group reissued a "neutral" rating on shares of Wingstop in a research note on Tuesday, July 14th. Mizuho reduced their price target on Wingstop from $280.00 to $240.00 and set an "outperform" rating on the stock in a report on Friday, July 24th. Finally, Royal Bank Of Canada lowered their price objective on Wingstop from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th.

Hedge Funds Weigh In On Wingstop

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Wingstop in the 2nd quarter valued at about $481,314,000. TimesSquare Capital Management LLC bought a new stake in shares of Wingstop during the 2nd quarter valued at about $15,874,000. Bank of New York Mellon Corp acquired a new stake in Wingstop during the second quarter worth approximately $80,456,000. Carnegie Investment Counsel grew its stake in Wingstop by 32.4% during the first quarter. Carnegie Investment Counsel now owns 68,489 shares of the restaurant operator's stock worth $10,614,000 after purchasing an additional 16,764 shares during the period. Finally, The Manufacturers Life Insurance Company acquired a new stake in Wingstop during the second quarter worth approximately $3,287,000.

Wingstop News Roundup

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Strong initial demand for Wing Pass: Wingstop introduced its first-ever Wing Pass for the football season, offering 18 weekly watch-party bundles for $27.99. Reports that the initial offering sold out suggest strong customer engagement and could support restaurant traffic and sales during the promotion. Wingstop sells out of first-ever Wing Pass offering
• Positive Sentiment: Seasonal menu launch could drive visits: Wingstop is adding Lemon Pepper Chili Crunch and Lemon Pepper Chili Glaze to its existing Original Lemon Pepper offering. The nationwide launch, scheduled for September 15, is designed to capitalize on football-season demand and may provide a modest boost to same-store sales. Wingstop Kicks Off Football Season with New Lemon Pepper Trio and Its First-Ever Wing Pass
• Neutral Sentiment: Recent trading commentary: One market report said Wingstop stock increased during the prior session even as the broader market declined, but it provided no new company-specific financial information or change to analyst expectations. Wingstop Rises As Market Takes a Dip
• Neutral Sentiment: Short-interest data appears unreliable: The reported September short interest of zero shares and a zero-day days-to-cover ratio is inconsistent with the description of a large increase and should not be treated as a meaningful signal for WING’s valuation or near-term direction.

Wingstop Price Performance

WING stock opened at $110.52 on Friday. The stock has a market cap of $3.01 billion, a price-to-earnings ratio of 26.25, a P/E/G ratio of 1.32 and a beta of 1.79. The company has a 50 day simple moving average of $128.15 and a 200 day simple moving average of $157.03. Wingstop has a 1 year low of $105.43 and a 1 year high of $302.80.

Wingstop (NASDAQ:WING - Get Free Report) last issued its earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share for the quarter, beating analysts' consensus estimates of $1.02 by $0.16. The firm had revenue of $185.56 million for the quarter, compared to analyst estimates of $190.25 million. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. The company's quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter last year, the business posted $1.00 earnings per share. On average, equities research analysts anticipate that Wingstop will post 4.5 EPS for the current fiscal year.

Wingstop Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Saturday, September 5th. Investors of record on Saturday, August 15th were given a dividend of $0.33 per share. The ex-dividend date was Friday, August 14th. This represents a $1.32 annualized dividend and a yield of 1.2%. This is a boost from Wingstop's previous quarterly dividend of $0.30. Wingstop's dividend payout ratio is 31.35%.

About Wingstop

Wingstop Inc NASDAQ: WING is a fast-casual restaurant chain specializing in chicken wings and related menu items. Founded in 1994 in Garland, Texas, the company has built its brand around bold, chef-inspired wing flavors and a streamlined service model that caters to dine-in, takeout, delivery and catering orders.

The company's core offerings include both bone-in and boneless chicken wings tossed in a variety of proprietary rubs and sauces, such as Original Hot, Lemon Pepper, and Mango Habanero.

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