Wingstop (NASDAQ:WING) Shares Down 6.4% - Here's What Happened

Key Points

• Wingstop shares fell 6.4% to about $107.33 in Tuesday trading, with volume down 86% from the average session. The stock is well below its 50-day and 200-day moving averages of $125.81 and $155.18, respectively.
• Analysts have recently cut price targets and one downgraded the stock to “market perform,” although the broader consensus remains a “Moderate Buy” with an average target of $240.33.
• Wingstop’s latest quarter showed mixed results: EPS of $1.18 exceeded estimates, while revenue of $185.56 million missed expectations despite 6.5% year-over-year growth. The company also raised its quarterly dividend to $0.33 per share.

Wingstop Inc. (NASDAQ:WING - Get Free Report) fell 6.4% during trading on Tuesday . The stock traded as low as $108.10 and last traded at $107.3340. Approximately 163,846 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 1,161,886 shares. The stock had previously closed at $114.71.

Analyst Ratings Changes

A number of equities analysts have weighed in on WING shares. BTIG Research lowered their price objective on Wingstop from $305.00 to $265.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Sanford C. Bernstein downgraded Wingstop from an "outperform" rating to a "market perform" rating and lowered their price target for the company from $220.00 to $155.00 in a report on Monday, August 3rd. Benchmark decreased their target price on shares of Wingstop from $285.00 to $245.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Wall Street Zen raised Wingstop from a "sell" rating to a "hold" rating in a report on Tuesday, July 14th. Finally, Royal Bank Of Canada cut their price target on Wingstop from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $240.33.

Wingstop Stock Performance

The firm has a market capitalization of $2.78 billion, a price-to-earnings ratio of 24.26, a price-to-earnings-growth ratio of 1.39 and a beta of 1.79. The company's fifty day moving average price is $125.81 and its 200 day moving average price is $155.18.

Wingstop (NASDAQ:WING - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate 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 revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.00 earnings per share. As a group, sell-side analysts expect that Wingstop Inc. will post 4.5 earnings per share for the current year.

Wingstop Increases Dividend

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

Hedge Funds Weigh In On Wingstop

A number of hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in shares of Wingstop in the second quarter worth approximately $481,314,000. Darsana Capital Partners LP grew its position 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 purchasing an additional 250,000 shares in the last quarter. Alyeska Investment Group L.P. increased its stake in Wingstop by 44.5% in 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 buying an additional 290,501 shares during the period. Jupiter Topco LLC purchased a new stake in Wingstop in the 2nd quarter worth approximately $147,440,000. Finally, Geode Capital Management LLC boosted its stake in shares of Wingstop by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 564,017 shares of the restaurant operator's stock valued at $134,537,000 after buying an additional 8,593 shares during the period.

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.

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