Hsbc Holdings PLC Takes Position in Wingstop Inc. $WING

Key Points

• HSBC Holdings acquired a new Wingstop position of 9,256 shares worth approximately $1.56 million in the second quarter. Other institutional investors, including BlackRock and Jupiter Topco, also initiated or expanded positions.
• Analyst sentiment remains a “Moderate Buy,” but several firms recently cut price targets or downgraded the stock, including TD Cowen, which moved to a Hold rating and lowered its target to $120.
• Wingstop’s latest quarterly EPS of $1.18 beat estimates, while revenue of $185.6 million fell short of expectations; the company also raised its quarterly dividend to $0.33 per share.

Hsbc Holdings PLC acquired a new position in Wingstop Inc. (NASDAQ:WING - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 9,256 shares of the restaurant operator's stock, valued at approximately $1,558,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in WING. BlackRock Inc. purchased a new stake in shares of Wingstop in the 2nd quarter worth $481,314,000. Price T Rowe Associates Inc. MD lifted its position in Wingstop by 2.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,111,089 shares of the restaurant operator's stock valued at $503,475,000 after purchasing an additional 58,386 shares in the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in Wingstop by 6.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,173,613 shares of the restaurant operator's stock valued at $279,895,000 after purchasing an additional 70,224 shares during the period. Steadfast Capital Management LP grew its holdings in Wingstop by 296.2% during the third quarter. Steadfast Capital Management LP now owns 950,521 shares of the restaurant operator's stock valued at $239,227,000 after purchasing an additional 710,621 shares during the period. Finally, Jupiter Topco LLC bought a new stake in Wingstop during the second quarter valued at about $147,440,000.

Analyst Ratings Changes

Several research analysts have recently commented on WING shares. Royal Bank Of Canada decreased their price objective on Wingstop from $225.00 to $200.00 and set an "outperform" rating on the stock in a research note on Thursday, July 30th. Sanford C. Bernstein downgraded Wingstop from an "outperform" rating to a "market perform" rating and cut their price objective for the company from $220.00 to $155.00 in a research note on Monday, August 3rd. UBS Group restated a "neutral" rating on shares of Wingstop in a research note on Tuesday, July 14th. TD Cowen lowered their price target on shares of Wingstop from $160.00 to $120.00 and set a "hold" rating on the stock in a report on Friday. Finally, BTIG Research lowered their price target on shares of Wingstop from $305.00 to $265.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Wingstop presently has an average rating of "Moderate Buy" and an average price target of $240.33.

Wingstop News Summary

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Wingstop introduced its first-ever Wing Pass, offering customers a season-long promotion tied to football season. Reports that the initial offering sold out suggest strong consumer interest and could support traffic, brand engagement, and near-term sales. Wingstop sells out of first-ever Wing Pass offering incredible deal
• Positive Sentiment: The company also launched a limited-time Lemon Pepper Trio for football season. Seasonal menu innovation and marketing may help drive customer visits and same-store sales during a key promotional period. Wingstop kicks off football season with Lemon Pepper Trio
• Positive Sentiment: Analysts collectively maintain a “Moderate Buy” average rating, providing some support for the stock despite recent estimate and valuation concerns. Wingstop analyst rating
• Neutral Sentiment: Recent market commentary noted that WING advanced even as the broader market weakened, indicating relative strength. However, this type of price action does not by itself establish a change in earnings fundamentals. Wingstop rises as market takes a dip
• Neutral Sentiment: The reported September short-interest figures show zero shares and a zero-day days-to-cover ratio, but the accompanying “NaN” change suggests the data may be incomplete or erroneous. Investors should not rely on it as a meaningful short-squeeze signal.
• Negative Sentiment: TD Cowen cut its price target from $160 to $120 and downgraded its stance to Hold, leaving only modest implied upside. The reduction signals weaker confidence in Wingstop’s valuation or growth outlook. Read More: Benzinga
• Negative Sentiment: A recent valuation analysis said the stock is more reasonably valued after its decline but warned that fundamentals remain questionable, including concerns about growth durability and operating performance. Wingstop valuation improves but fundamentals are questionable

Wingstop Price Performance

WING stock opened at $117.10 on Friday. Wingstop Inc. has a 1-year low of $105.43 and a 1-year high of $302.80. The business has a 50 day simple moving average of $126.93 and a two-hundred day simple moving average of $156.75. The company has a market capitalization of $3.19 billion, a price-to-earnings ratio of 27.81, a PEG ratio of 1.39 and a beta of 1.79.

Wingstop (NASDAQ:WING - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.16. The firm 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%. The company's revenue for the quarter was up 6.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.00 earnings per share. Sell-side analysts anticipate that Wingstop Inc. will post 4.5 EPS for the current fiscal year.

Wingstop Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Saturday, September 5th. Shareholders of record on Saturday, August 15th were paid a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, August 14th. This is an increase from Wingstop's previous quarterly dividend of $0.30. Wingstop's dividend payout ratio is presently 31.35%.

Wingstop Profile

Wingstop Inc is a fast-casual restaurant company specializing in cooked-to-order chicken wings and tenders. Its menu also includes fries, seasoned fries, dipping sauces, and beverages, with offerings built around a range of signature flavors and sauces. The company primarily operates through a franchise-based model.

Wingstop was founded in 1994 in Garland, Texas, and has expanded from its original location into a global restaurant brand. Its restaurants serve customers across the United States and in international markets through a network of franchised and company-operated locations.

Wingstop became a publicly traded company in 2015.

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