Wingstop Inc. (NASDAQ:WING) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Wingstop has a consensus “Moderate Buy” rating from 30 analysts, including 21 buys and two strong buys. The average 12-month price target is $236.44, though several firms recently lowered their targets.
• Shares opened at $106.84, well below their 52-week high of $302.80, while the company reported quarterly EPS of $1.18—beating estimates—but revenue of $185.56 million fell short of expectations.
• Wingstop increased its quarterly dividend from $0.30 to $0.33 per share, equal to a 1.2% annualized yield, and several major institutional investors—including BlackRock—recently established positions.

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) have been given a consensus rating of "Moderate Buy" by the thirty brokerages that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a sell rating, five have assigned a hold rating, twenty-one have given a buy rating and two have assigned a strong buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $236.44.

A number of analysts have recently weighed in on WING shares. Raymond James Financial reiterated a "strong-buy" rating and set a $185.00 target price (down from $240.00) on shares of Wingstop in a report on Friday, September 18th. DA Davidson reduced their price target on Wingstop from $200.00 to $190.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Wall Street Zen raised Wingstop from a "sell" rating to a "hold" rating in a research report on Tuesday, July 14th. Weiss Ratings cut Wingstop from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, August 17th. Finally, Benchmark cut their price objective on Wingstop from $285.00 to $245.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th.

Wingstop Stock Down 0.0%

NASDAQ:WING opened at $106.84 on Tuesday. The company has a fifty day moving average of $112.92 and a 200 day moving average of $141.98. Wingstop has a 52 week low of $95.82 and a 52 week high of $302.80. The firm has a market capitalization of $2.91 billion, a P/E ratio of 25.38, a P/E/G ratio of 1.28 and a beta of 1.81.

Wingstop (NASDAQ:WING - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.16. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. The business had revenue of $185.56 million during the quarter, compared to analysts' expectations of $190.25 million. During the same quarter in the prior year, the company posted $1.00 EPS. The firm's revenue for the quarter was up 6.5% compared to the same quarter last year. As a group, analysts anticipate that Wingstop will post 4.49 EPS for the current 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 issued a dividend of $0.33 per share. This is a boost from Wingstop's previous quarterly dividend of $0.30. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Friday, August 14th. Wingstop's dividend payout ratio is currently 31.35%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in WING. BlackRock Inc. bought a new position in shares of Wingstop in the 2nd quarter worth approximately $481,314,000. Jupiter Topco LLC bought a new stake in shares of Wingstop during the second quarter valued at approximately $147,440,000. Bank of New York Mellon Corp bought a new stake in shares of Wingstop during the second quarter valued at approximately $80,456,000. Bamco Inc. NY purchased a new stake in Wingstop in the second quarter worth $74,595,000. Finally, Atreides Management LP purchased a new stake in Wingstop in the fourth quarter worth $93,012,000.

Wingstop Company Profile

Wingstop Inc is a restaurant company that specializes in made-to-order chicken wings and related menu items. Its offerings include classic and boneless wings prepared with a variety of signature flavors, as well as chicken sandwiches, tenders, seasoned fries, sides, dips and beverages. The company serves customers through dine-in, takeout, delivery and digital ordering channels.

Founded in 1994 in Garland, Texas, Wingstop has developed primarily as a franchised restaurant brand. The company supports its franchisees through brand marketing, restaurant development, operating systems, menu innovation and supply-chain coordination, while franchisees generally own and operate individual locations.

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