Insider Selling: Wingstop (NASDAQ:WING) COO Sells $409,025.00 in Stock

Key Points

• Wingstop COO Raj Kapoor sold 2,500 shares at an average price of $163.61, generating $409,025 and reducing his direct holdings by 60.11% to 1,659 shares.
• Wingstop reported quarterly EPS of $1.08, exceeding estimates by $0.06, while revenue rose 5.4% year over year to $185.13 million but came in below expectations.
• The company declared a quarterly dividend of $0.33 per share, equivalent to a $1.32 annualized payout and a 0.8% yield; analysts maintain a consensus “Moderate Buy” rating with a $222.43 price target.

Wingstop Inc. (NASDAQ:WING - Get Free Report) COO Raj Kapoor sold 2,500 shares of the firm's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $163.61, for a total transaction of $409,025.00. Following the sale, the chief operating officer directly owned 1,659 shares in the company, valued at approximately $271,428.99. The trade was a 60.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Wingstop Price Performance

Shares of NASDAQ:WING traded up $13.31 during trading on Monday, hitting $163.04. 2,972,327 shares of the company were exchanged, compared to its average volume of 1,219,473. The stock has a market capitalization of $4.41 billion, a P/E ratio of 38.27, a PEG ratio of 1.99 and a beta of 1.81. Wingstop Inc. has a 12-month low of $95.82 and a 12-month high of $302.80. The firm's 50 day moving average price is $115.09 and its 200-day moving average price is $164.57.

Wingstop (NASDAQ:WING - Get Free Report) last issued its earnings results on Wednesday, October 28th. The restaurant operator reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.06. Wingstop had a net margin of 16.03% and a negative return on equity of 15.80%. The business had revenue of $185.13 million during the quarter, compared to analysts' expectations of $192.89 million. During the same quarter in the prior year, the business posted $1.09 EPS. The company's revenue for the quarter was up 5.4% on a year-over-year basis. As a group, equities research analysts anticipate that Wingstop Inc. will post 4.19 EPS for the current year.

Wingstop Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 13th will be issued a dividend of $0.33 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $1.32 annualized dividend and a dividend yield of 0.8%. Wingstop's dividend payout ratio (DPR) is presently 30.99%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. Raymond James Financial reissued a "strong-buy" rating on shares of Wingstop in a report on Thursday. Royal Bank Of Canada raised their price target on Wingstop from $150.00 to $175.00 and gave the stock an "outperform" rating in a research note on Thursday. Weiss Ratings lowered Wingstop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. DA Davidson reaffirmed a "buy" rating and set a $180.00 price target on shares of Wingstop in a research report on Thursday. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $160.00 price objective on shares of Wingstop in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $222.43.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of WING. BlackRock Inc. purchased a new position in shares of Wingstop during the second quarter worth about $481,314,000. Darsana Capital Partners LP increased its position in Wingstop by 20.0% in the 2nd quarter. Darsana Capital Partners LP now owns 1,500,000 shares of the restaurant operator's stock valued at $260,115,000 after acquiring an additional 250,000 shares during the period. Alyeska Investment Group L.P. raised its stake in Wingstop by 44.5% during the 2nd quarter. Alyeska Investment Group L.P. now owns 942,943 shares of the restaurant operator's stock valued at $163,516,000 after acquiring an additional 290,501 shares during the last quarter. State Street Corp raised its stake in Wingstop by 2.0% during the 2nd quarter. State Street Corp now owns 863,951 shares of the restaurant operator's stock valued at $149,751,000 after acquiring an additional 16,907 shares during the last quarter. Finally, Jupiter Topco LLC purchased a new stake in Wingstop during the 2nd quarter valued at approximately $147,440,000.

About Wingstop

Wingstop Inc is a franchised restaurant company specializing in cooked-to-order chicken wings and related menu items. Its offerings include classic and boneless wings prepared with a range of flavors, along with chicken sandwiches, tenders, fries, seasoned fries, dips, sides and beverages. The company emphasizes made-to-order food, a digital ordering experience and a menu centered on customizable chicken meals.

Founded in 1994 in Garland, Texas, Wingstop has expanded from a single restaurant into a global brand operated primarily through franchised locations.

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