Wingstop (NASDAQ:WING) Sets New 1-Year Low - Should You Sell?

Key Points

• Wingstop shares fell to a new 52-week low of $99.90, well below their 50-day and 200-day moving averages, signaling significant recent price weakness.
• Analysts have lowered several price targets, but the stock retains a “Moderate Buy” consensus with an average target of $236.44, substantially above its recent trading level.
• Despite missing revenue estimates, Wingstop exceeded quarterly EPS expectations and delivered 6.5% year-over-year revenue growth. The company also raised its quarterly dividend to $0.33 per share, producing a 1.3% annualized yield.

Wingstop Inc. (NASDAQ:WING - Get Free Report) hit a new 52-week low on Wednesday . The company traded as low as $99.90 and last traded at $98.6520, with a volume of 94802 shares changing hands. The stock had previously closed at $102.38.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Benchmark cut their price target on Wingstop from $285.00 to $245.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. DA Davidson dropped their target price on Wingstop from $200.00 to $190.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. TD Cowen cut their target price on Wingstop from $160.00 to $120.00 and set a "hold" rating on the stock in a research note on Friday, September 11th. Wells Fargo & Company cut their price objective on shares of Wingstop from $170.00 to $165.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. Finally, Morgan Stanley decreased their target price on shares of Wingstop from $255.00 to $238.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $236.44.

Wingstop Stock Performance

The firm has a fifty day moving average price of $119.36 and a two-hundred day moving average price of $148.89. The stock has a market capitalization of $2.72 billion, a P/E ratio of 23.73, a PEG ratio of 1.28 and a beta of 1.79.

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, beating analysts' consensus estimates of $1.02 by $0.16. The business had revenue of $185.56 million during the quarter, compared to the consensus estimate of $190.25 million. Wingstop had a negative return on equity of 16.31% and a net margin of 16.15%.The business's quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.00 EPS. On average, research analysts anticipate that Wingstop Inc. will post 4.5 earnings per share for the current fiscal year.

Wingstop Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Saturday, September 5th. Shareholders of record on Saturday, August 15th were paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date was Friday, August 14th. This is a positive change from Wingstop's previous quarterly dividend of $0.30. Wingstop's dividend payout ratio (DPR) is 31.35%.

Hedge Funds Weigh In On Wingstop

Hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new position in shares of Wingstop during the 2nd quarter valued at $481,314,000. Darsana Capital Partners LP raised its holdings in 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 acquiring an additional 250,000 shares during the period. Alyeska Investment Group L.P. raised its holdings in Wingstop by 44.5% during the second 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 period. State Street Corp raised its holdings in Wingstop by 2.0% during the second 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 period. Finally, Jupiter Topco LLC purchased a new position in shares of Wingstop in the second quarter valued at about $147,440,000.

About Wingstop

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.

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