Hsbc Holdings PLC Takes $1.56 Million Position in Wingstop Inc. $WING

Key Points

• Hsbc Holdings PLC acquired a new $1.56 million stake in Wingstop during the second quarter, purchasing 9,256 shares. Other institutional investors also modestly increased their positions.
• Wingstop’s latest quarter exceeded earnings expectations, with $1.18 in EPS versus the $1.02 consensus, while revenue rose 6.5% year over year to $185.56 million, below estimates.
• The company raised its quarterly dividend to $0.33 per share, equivalent to a $1.32 annualized payout and a 1.2% yield. Despite the stock opening at $109.48—well below its $338.80 one-year high—analysts maintain a “Moderate Buy” consensus with a $241.81 price target.

Hsbc Holdings PLC bought a new position in shares of Wingstop Inc. (NASDAQ:WING - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 9,256 shares of the restaurant operator's stock, valued at approximately $1,558,000.

Several other large investors have also added to or reduced their stakes in WING. Vident Advisory LLC raised its position in shares of Wingstop by 3.9% during the 4th quarter. Vident Advisory LLC now owns 959 shares of the restaurant operator's stock valued at $229,000 after purchasing an additional 36 shares during the period. Quadrant Capital Group LLC lifted its stake in shares of Wingstop by 1.7% during the 4th quarter. Quadrant Capital Group LLC now owns 2,628 shares of the restaurant operator's stock valued at $627,000 after buying an additional 45 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its holdings in Wingstop by 1.1% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 5,672 shares of the restaurant operator's stock worth $879,000 after buying an additional 59 shares during the period. SBI Securities Co. Ltd. boosted its holdings in Wingstop by 76.9% in the 4th quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock worth $33,000 after buying an additional 60 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in Wingstop by 1.5% in the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 4,784 shares of the restaurant operator's stock worth $1,141,000 after buying an additional 70 shares during the period.

Wingstop Price Performance

Shares of WING opened at $109.48 on Tuesday. The stock has a market capitalization of $2.98 billion, a price-to-earnings ratio of 26.00, a price-to-earnings-growth ratio of 1.35 and a beta of 1.81. Wingstop Inc. has a 1 year low of $105.43 and a 1 year high of $338.80. The business's 50 day simple moving average is $137.11 and its 200-day simple moving average is $164.64.

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, topping the consensus estimate of $1.02 by $0.16. The company had revenue of $185.56 million for the quarter, compared to analysts' expectations of $190.25 million. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. Wingstop's quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.00 earnings per share. On average, sell-side analysts expect that Wingstop Inc. will post 4.5 earnings per share for the current year.

Wingstop Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Saturday, September 5th. Shareholders of record on Saturday, August 15th will be paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, August 14th. This is an increase from Wingstop's previous quarterly dividend of $0.30. Wingstop's dividend payout ratio is 31.35%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on WING shares. Bank of America decreased their target price on Wingstop from $264.00 to $234.00 and set a "buy" rating on the stock in a research note on Wednesday, June 24th. Guggenheim dropped their price target on Wingstop from $255.00 to $215.00 and set a "buy" rating for the company in a research note on Monday, May 4th. UBS Group reaffirmed a "neutral" rating on shares of Wingstop in a report on Tuesday, July 14th. Citigroup reduced their price objective on shares of Wingstop from $237.00 to $208.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Finally, Stephens reiterated an "overweight" rating and set a $200.00 price objective on shares of Wingstop in a research report on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Wingstop currently has an average rating of "Moderate Buy" and a consensus price target of $241.81.

Wingstop Profile

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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