Wingstop (NASDAQ:WING) Sets New 1-Year Low - Here's Why

Key Points

• Wingstop shares fell 12.1% to $100.13, setting a new 52-week low and trading well below their 50-day and 200-day moving averages.
• Analysts have lowered several price targets, though the stock retains a consensus “Moderate Buy” rating with an average target of $240.33.
• Recent quarterly results were mixed: earnings of $1.18 per share exceeded estimates, but revenue of $185.56 million fell short of expectations despite 6.5% year-over-year growth. Wingstop also raised its quarterly dividend to $0.33 per share.

Wingstop Inc. (NASDAQ:WING - Get Free Report) hit a new 52-week low during trading on Wednesday . The company traded as low as $100.13 and last traded at $100.84, with a volume of 2887113 shares trading hands. The stock had previously closed at $114.71.

Analyst Ratings Changes

Several equities analysts have weighed in on WING shares. Wells Fargo & Company cut their target price on Wingstop from $170.00 to $165.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Wall Street Zen upgraded Wingstop from a "sell" rating to a "hold" rating in a research report on Tuesday, July 14th. UBS Group reaffirmed a "neutral" rating on shares of Wingstop in a research note on Tuesday, July 14th. Royal Bank Of Canada cut their price target on shares of Wingstop from $225.00 to $200.00 and set an "outperform" rating on the stock in a research report on Thursday, July 30th. Finally, Bank of America reduced their price objective on shares of Wingstop from $264.00 to $234.00 and set a "buy" rating on the stock in a research note on Wednesday, June 24th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Wingstop presently has a consensus rating of "Moderate Buy" and an average price target of $240.33.

Wingstop Trading Down 12.1%

The firm has a 50-day moving average of $124.42 and a 200 day moving average of $154.10. The company has a market cap of $2.75 billion, a P/E ratio of 23.95, a price-to-earnings-growth ratio of 1.36 and a beta of 1.79.

Wingstop (NASDAQ:WING - Get Free Report) last announced its quarterly earnings data 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. Wingstop had a negative return on equity of 16.31% and a net margin of 16.15%.The company had revenue of $185.56 million during the quarter, compared to analyst estimates of $190.25 million. During the same quarter last year, the firm posted $1.00 EPS. The firm's revenue for the quarter was up 6.5% on a year-over-year basis. On average, equities analysts predict that Wingstop Inc. will post 4.5 EPS for the current year.

Wingstop Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Saturday, September 5th. Shareholders of record on Saturday, August 15th were given a $0.33 dividend. The ex-dividend date was Friday, August 14th. This is a boost from Wingstop's previous quarterly dividend of $0.30. This represents a $1.32 annualized dividend and a yield of 1.3%. Wingstop's payout ratio is 31.35%.

Institutional Investors Weigh In On Wingstop

A number of institutional investors and hedge funds have recently modified their holdings of WING. Sequoia Financial Advisors LLC purchased a new stake in Wingstop in the second quarter worth $246,000. Tidal Investments LLC lifted its position in shares of Wingstop by 48.7% during the second quarter. Tidal Investments LLC now owns 2,235 shares of the restaurant operator's stock worth $388,000 after purchasing an additional 732 shares during the last quarter. Darsana Capital Partners LP boosted its stake in shares of Wingstop by 20.0% during the second quarter. Darsana Capital Partners LP now owns 1,500,000 shares of the restaurant operator's stock valued at $260,115,000 after purchasing an additional 250,000 shares during the period. Nykredit A S bought a new position in shares of Wingstop in the second quarter worth about $152,000. Finally, Corient Private Wealth LP grew its holdings in shares of Wingstop by 43.5% in the second quarter. Corient Private Wealth LP now owns 1,965 shares of the restaurant operator's stock worth $341,000 after purchasing an additional 596 shares during the last quarter.

Wingstop Company 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.

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.