Wingstop (NASDAQ:WING) Reaches New 12-Month Low - What's Next?

Key Points

• Wingstop shares fell 3.4% to a new 52-week low of $108.25, well below their 50-day and 200-day moving averages of $140.06 and $167.97, respectively.
• Despite the selloff, analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $241.81; several firms recently lowered targets while retaining Buy ratings.
• Wingstop beat quarterly EPS estimates ($1.18 versus $1.02) while revenue rose 6.5% year over year but missed forecasts. The company also increased its quarterly dividend to $0.33, implying a 1.2% annual yield.

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) reached a new 52-week low on Thursday . The company traded as low as $108.25 and last traded at $108.9160, with a volume of 78444 shares. The stock had previously closed at $112.24.

Analysts Set New Price Targets

A number of research firms have issued reports on WING. Robert W. Baird raised shares of Wingstop to a "strong-buy" rating in a research note on Monday. Benchmark dropped their price target on shares of Wingstop from $285.00 to $245.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. BTIG Research cut their price target on Wingstop from $305.00 to $265.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Stephens reiterated an "overweight" rating and set a $200.00 price objective on shares of Wingstop in a research report on Thursday, July 30th. Finally, Wall Street Zen raised Wingstop from a "sell" rating to a "hold" rating in a report on Tuesday, July 14th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Wingstop currently has an average rating of "Moderate Buy" and a consensus price target of $241.81.

Wingstop Stock Down 3.4%

The firm has a market capitalization of $2.95 billion, a P/E ratio of 25.78, a PEG ratio of 1.35 and a beta of 1.81. The business's 50 day moving average is $140.06 and its two-hundred day moving average is $167.97.

Wingstop (NASDAQ:WING - Get Free Report) last announced its earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.02 by $0.16. The firm had revenue of $185.56 million during the quarter, compared to analyst estimates of $190.25 million. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. Wingstop's revenue was up 6.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.00 EPS. As a group, equities analysts anticipate that Wingstop Inc. will post 4.5 earnings per share for the current fiscal year.

Wingstop Increases Dividend

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. SBI Securities Co. Ltd. lifted its position in Wingstop by 76.9% in the fourth quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock worth $33,000 after purchasing an additional 60 shares during the period. Allworth Financial LP bought a new position in Wingstop during the 2nd quarter valued at $34,000. GW&K Investment Management LLC increased its position in shares of Wingstop by 75.7% during the 4th quarter. GW&K Investment Management LLC now owns 188 shares of the restaurant operator's stock valued at $45,000 after purchasing an additional 81 shares during the period. Harbor Investment Advisory LLC acquired a new position in shares of Wingstop during the 2nd quarter valued at $46,000. Finally, Geneos Wealth Management Inc. increased its position in shares of 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 purchasing an additional 119 shares during the period.

About Wingstop

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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