Wingstop (NASDAQ:WING) Stock Crosses Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Wingstop shares fell below their 200-day moving average, trading as low as $158.16 versus the $159.82 average and last changing hands at $159.26.
• Analyst views remain broadly positive: MarketBeat reports a “Moderate Buy” consensus and a $219.56 average price target, despite some firms lowering targets and one rating the stock a sell.
• In its latest quarter, Wingstop beat earnings-per-share estimates ($1.08 versus $1.02), but revenue missed forecasts; revenue grew 5.4% year over year. The company also declared a quarterly dividend of $0.33 per share.

Wingstop Inc. (NASDAQ:WING - Get Free Report) shares crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $159.82 and traded as low as $158.16. Wingstop shares last traded at $159.26, with a volume of 993,076 shares.

Analyst Ratings Changes

Several research firms have weighed in on WING. Royal Bank Of Canada lifted their price objective on Wingstop from $150.00 to $175.00 and gave the company an "outperform" rating in a research report on Thursday, October 29th. Wall Street Zen lowered Wingstop from a "hold" rating to a "sell" rating in a research report on Saturday, October 31st. Raymond James Financial restated a "strong-buy" rating on shares of Wingstop in a research note on Thursday, October 29th. Morgan Stanley dropped their price target on Wingstop from $202.00 to $198.00 and set an "overweight" rating on the stock in a research report on Thursday, October 29th. Finally, Mizuho dropped their price target on Wingstop from $240.00 to $200.00 and set an "outperform" rating on the stock in a research report on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $219.56.

Wingstop Price Performance

The firm's 50 day moving average is $124.69 and its 200 day moving average is $159.82. The firm has a market cap of $4.31 billion, a P/E ratio of 37.38, a price-to-earnings-growth ratio of 2.21 and a beta of 1.77.

Wingstop (NASDAQ:WING - Get Free Report) last announced its earnings results on Wednesday, October 28th. The restaurant operator reported $1.08 earnings per share for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $192.89 million. During the same quarter last year, the firm earned $1.09 earnings per share. The business's revenue for the quarter was up 5.4% on a year-over-year basis. As a group, analysts expect that Wingstop Inc. will post 4.19 EPS for the current year.

Wingstop Announces Dividend

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

Insiders Place Their Bets

In other Wingstop news, COO Raj Kapoor sold 2,500 shares of the business's stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $163.61, for a total value of $409,025.00. Following the sale, the chief operating officer directly owned 1,659 shares of the company's stock, valued at approximately $271,428.99. The trade was a 60.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Wesley Mcdonald sold 1,520 shares of the stock in a transaction on Friday, October 30th. The stock was sold at an average price of $145.11, for a total value of $220,567.20. Following the completion of the sale, the director directly owned 3,986 shares in the company, valued at approximately $578,408.46. This represents a 27.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.53% of the stock is currently owned by insiders.

Institutional Trading of Wingstop

Several institutional investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in Wingstop in the second quarter worth about $481,314,000. Jupiter Topco LLC purchased a new stake in shares of Wingstop during the second quarter valued at approximately $147,440,000. Bank of New York Mellon Corp purchased a new stake in shares of Wingstop during the second quarter valued at approximately $80,456,000. Bamco Inc. NY bought a new stake in shares of Wingstop during the second quarter valued at approximately $74,595,000. Finally, Wellington Management Group LLP increased its position in shares of Wingstop by 681.6% during the second quarter. Wellington Management Group LLP now owns 374,483 shares of the restaurant operator's stock valued at $64,939,000 after acquiring an additional 326,568 shares in the last quarter.

Wingstop Company Profile

Wingstop Inc. is a restaurant company focused on chicken wings and related menu items. Its offerings include classic and boneless wings with a range of flavors, as well as chicken tenders, fries, dips and other sides. Customers can order through its restaurants and digital channels. Founded in 1994 in Garland, Texas, Wingstop has grown into an international brand. The company operates primarily through franchised restaurants in the United States and select international markets. Wingstop is headquartered in Addison, Texas.

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