Wasatch Advisors LP Cuts Stake in Wingstop Inc. $WING

Key Points

• Wasatch Advisors cut its Wingstop stake by 34.2% in the second quarter, selling 195,376 shares and retaining 376,706 shares valued at approximately $65.3 million.
• Wingstop shares opened at $111.36, down 5.2%, and were near their 52-week low of $110.44 despite the company exceeding quarterly EPS expectations. Revenue rose 6.5% year over year but fell short of analyst estimates.
• The company increased its quarterly dividend from $0.30 to $0.33 per share, while analysts maintained a “Moderate Buy” consensus and an average price target of $241.81.

Wasatch Advisors LP reduced its position in Wingstop Inc. (NASDAQ:WING - Free Report) by 34.2% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 376,706 shares of the restaurant operator's stock after selling 195,376 shares during the quarter. Wasatch Advisors LP owned 1.38% of Wingstop worth $65,325,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the business. Baird Financial Group Inc. purchased a new position in Wingstop during the 1st quarter valued at about $256,000. Jones Financial Companies Lllp boosted its stake in shares of Wingstop by 2,770.6% during the first quarter. Jones Financial Companies Lllp now owns 1,952 shares of the restaurant operator's stock valued at $440,000 after purchasing an additional 1,884 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Wingstop by 5.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 92,439 shares of the restaurant operator's stock valued at $20,852,000 after purchasing an additional 4,937 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in Wingstop by 121.4% during the first quarter. Geneos Wealth Management Inc. now owns 217 shares of the restaurant operator's stock valued at $49,000 after buying an additional 119 shares during the period. Finally, Sivia Capital Partners LLC increased its holdings in Wingstop by 45.5% during the second quarter. Sivia Capital Partners LLC now owns 1,387 shares of the restaurant operator's stock valued at $467,000 after buying an additional 434 shares during the period.

Wingstop Stock Down 5.2%

NASDAQ:WING opened at $111.36 on Wednesday. The stock has a market capitalization of $3.03 billion, a price-to-earnings ratio of 26.45, a PEG ratio of 1.40 and a beta of 1.81. Wingstop Inc. has a 52 week low of $110.44 and a 52 week high of $345.81. The firm has a 50 day moving average of $147.73 and a 200 day moving average of $180.04.

Wingstop (NASDAQ:WING - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $190.25 million. During the same period in the previous year, the company earned $1.00 earnings per share. The business's revenue for the quarter was up 6.5% on a year-over-year basis. As a group, analysts expect that Wingstop Inc. will post 4.5 EPS for the current year.

Wingstop Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Saturday, September 5th. Investors of record on Saturday, August 15th will be paid a dividend of $0.33 per share. This is a positive change from Wingstop's previous quarterly dividend of $0.30. The ex-dividend date is Friday, August 14th. This represents a $1.32 annualized dividend and a yield of 1.2%. Wingstop's dividend payout ratio (DPR) is presently 28.50%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on WING. Wells Fargo & Company reduced their price objective on shares of Wingstop from $170.00 to $165.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Piper Sandler set a $173.00 price target on Wingstop in a report on Wednesday, July 29th. Stephens reissued an "overweight" rating and issued a $200.00 price target on shares of Wingstop in a research report on Thursday, July 30th. TD Cowen restated a "hold" rating on shares of Wingstop in a research note on Wednesday, July 29th. Finally, Bank of America dropped their price objective on Wingstop from $264.00 to $234.00 and set a "buy" rating on the stock in a research report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source