William Blair Investment Management LLC Acquires New Position in Wingstop Inc. $WING

Key Points

• William Blair Investment Management acquired 110,318 Wingstop shares worth approximately $19.13 million, representing about 0.40% of the company.
• Wingstop reported quarterly EPS of $1.18, beating estimates of $1.02, while revenue rose 6.5% year over year to $185.56 million but fell short of expectations.
• The company increased its quarterly dividend from $0.30 to $0.33 per share, while analyst sentiment remained a “Moderate Buy” despite several price-target reductions and downgrades.

William Blair Investment Management LLC acquired a new stake in shares of Wingstop Inc. (NASDAQ:WING - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 110,318 shares of the restaurant operator's stock, valued at approximately $19,130,000. William Blair Investment Management LLC owned about 0.40% of Wingstop as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. SBI Securities Co. Ltd. raised its position in shares of Wingstop by 76.9% in the fourth quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock valued at $33,000 after purchasing an additional 60 shares during the period. Rakuten Securities Inc. boosted its holdings in Wingstop by 197.9% in the 4th quarter. Rakuten Securities Inc. now owns 143 shares of the restaurant operator's stock worth $34,000 after buying an additional 95 shares during the period. GW&K Investment Management LLC grew its stake in Wingstop by 75.7% in the 4th quarter. GW&K Investment Management LLC now owns 188 shares of the restaurant operator's stock valued at $45,000 after buying an additional 81 shares in the last quarter. Allworth Financial LP purchased a new position in Wingstop in the 2nd quarter valued at approximately $34,000. Finally, Geneos Wealth Management Inc. raised its holdings in Wingstop by 121.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 217 shares of the restaurant operator's stock valued at $49,000 after acquiring an additional 119 shares during the period.

Wingstop Price Performance

Shares of NASDAQ:WING opened at $115.43 on Friday. The firm has a fifty day moving average price of $142.78 and a two-hundred day moving average price of $172.02. The company has a market cap of $3.14 billion, a price-to-earnings ratio of 27.42, a PEG ratio of 1.37 and a beta of 1.81. Wingstop Inc. has a one year low of $110.44 and a one year high of $342.10.

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 for the quarter, topping 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 business's quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.00 earnings per share. Equities research analysts expect that Wingstop Inc. will post 4.5 EPS for the current fiscal year.

Wingstop Increases Dividend

The firm also recently announced 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. The ex-dividend date is Friday, August 14th. This represents a $1.32 dividend on an annualized basis and a yield of 1.1%. This is an increase from Wingstop's previous quarterly dividend of $0.30. Wingstop's dividend payout ratio is currently 31.35%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. TD Cowen restated a "hold" rating on shares of Wingstop in a research report on Wednesday, July 29th. Weiss Ratings cut Wingstop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. Wells Fargo & Company decreased their price objective on Wingstop from $170.00 to $165.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Guggenheim dropped their price objective on Wingstop from $255.00 to $215.00 and set a "buy" rating on the stock in a report on Monday, May 4th. Finally, The Goldman Sachs Group downgraded Wingstop from a "buy" rating to a "neutral" rating and cut their target price for the stock from $290.00 to $190.00 in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Wingstop currently has a consensus rating of "Moderate Buy" and a consensus price target of $241.81.

Wingstop Company 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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