Envestnet Asset Management Inc. Cuts Holdings in Wingstop Inc. $WING

Key Points

• Envestnet Asset Management cut its Wingstop holdings by 29% in the second quarter, selling 16,683 shares and retaining 40,773 shares valued at approximately $7.07 million. Other institutions, including Darsana Capital and Tidal Investments, increased their positions.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $236.44, although several firms recently reduced their targets amid weaker share-price performance.
• Wingstop reported adjusted earnings of $1.18 per share, beating estimates, while quarterly revenue rose 6.5% year over year to $185.56 million. The company also increased its quarterly dividend to $0.33 per share, producing a 1.2% annualized yield.

Envestnet Asset Management Inc. trimmed its holdings in shares of Wingstop Inc. (NASDAQ:WING - Free Report) by 29.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 40,773 shares of the restaurant operator's stock after selling 16,683 shares during the quarter. Envestnet Asset Management Inc. owned 0.15% of Wingstop worth $7,070,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently bought and sold shares of WING. State Street Corp grew its stake in shares of Wingstop by 2.0% during the second quarter. State Street Corp now owns 863,951 shares of the restaurant operator's stock worth $149,751,000 after acquiring an additional 16,907 shares during the last quarter. Sequoia Financial Advisors LLC acquired a new stake in Wingstop during the second quarter worth about $246,000. Tidal Investments LLC lifted its stake in shares of Wingstop by 48.7% in the 2nd quarter. Tidal Investments LLC now owns 2,235 shares of the restaurant operator's stock valued at $388,000 after purchasing an additional 732 shares during the period. Darsana Capital Partners LP boosted its stake in shares of Wingstop by 20.0% during the 2nd quarter. Darsana Capital Partners LP now owns 1,500,000 shares of the restaurant operator's stock worth $260,115,000 after acquiring an additional 250,000 shares in the last quarter. Finally, Nykredit A S purchased a new stake in shares of Wingstop in the second quarter valued at approximately $152,000.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. TD Cowen dropped their price objective on shares of Wingstop from $160.00 to $120.00 and set a "hold" rating for the company in a report on Friday, September 11th. UBS Group reissued a "neutral" rating on shares of Wingstop in a research report on Tuesday, July 14th. Morgan Stanley reduced their target price on shares of Wingstop from $255.00 to $238.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. DA Davidson decreased their target price on Wingstop from $200.00 to $190.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Finally, 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 research report on Friday, September 18th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $236.44.

Wingstop Stock Up 2.4%

NASDAQ WING opened at $106.89 on Friday. The business has a 50 day moving average price of $113.53 and a two-hundred day moving average price of $143.02. The stock has a market cap of $2.91 billion, a PE ratio of 25.39, a P/E/G ratio of 1.25 and a beta of 1.81. Wingstop Inc. has a fifty-two week low of $95.82 and a fifty-two week high of $302.80.

Wingstop (NASDAQ:WING - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.16. The firm had revenue of $185.56 million during the quarter, compared to the consensus estimate of $190.25 million. Wingstop had a negative return on equity of 16.31% and a net margin of 16.15%.Wingstop's revenue for the quarter was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.00 earnings per share. Sell-side analysts anticipate that Wingstop Inc. will post 4.49 EPS for the current fiscal year.

Wingstop Increases Dividend

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

Wingstop 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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