Wingstop (NASDAQ:WING) Stock Falls 6.4% - Here's What Happened

Key Points

• Wingstop shares fell 6.4% to about $121.97, with trading volume down 92% from the stock’s average daily level.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $233.74, although several firms recently lowered their targets and Weiss Ratings downgraded the stock to “sell.”
• The company beat quarterly earnings expectations with EPS of $1.18 versus $1.02 expected, while revenue rose 6.5% year over year but missed estimates; Wingstop also increased its quarterly dividend to $0.33 per share.

Wingstop Inc. (NASDAQ:WING - Get Free Report) dropped 6.4% during trading on Wednesday. The stock traded as low as $123.07 and last traded at $121.9740. 97,336 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 1,179,804 shares. The stock had previously closed at $130.31.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on WING shares. Weiss Ratings lowered shares of Wingstop from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, August 17th. Royal Bank Of Canada decreased their price target on shares of Wingstop from $200.00 to $150.00 and set an "outperform" rating for the company in a research note on Thursday, September 17th. Wells Fargo & Company lowered their price objective on shares of Wingstop from $170.00 to $165.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Raymond James Financial restated a "strong-buy" rating and issued a $185.00 price objective (down from $240.00) on shares of Wingstop in a report on Friday, September 18th. Finally, Stephens reaffirmed an "overweight" rating and set a $200.00 price objective on shares of Wingstop in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $233.74.

Wingstop Trading Down 6.3%

The stock's fifty day moving average price is $112.80 and its 200 day moving average price is $138.58. The stock has a market cap of $3.33 billion, a P/E ratio of 29.03, a PEG ratio of 1.60 and a beta of 1.81.

Wingstop (NASDAQ:WING - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $1.18 EPS for the quarter, topping the consensus estimate of $1.02 by $0.16. The business had revenue of $185.56 million for 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 quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.00 earnings per share. As a group, sell-side analysts forecast that Wingstop Inc. will post 4.45 earnings per share for the current year.

Wingstop Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Saturday, September 5th. Stockholders of record on Saturday, August 15th were issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, August 14th. This is a boost from Wingstop's previous quarterly dividend of $0.30. Wingstop's payout ratio is 31.35%.

Institutional Trading of Wingstop

A number of hedge funds have recently bought and sold shares of WING. Allworth Financial LP bought a new stake in Wingstop during the second quarter valued at about $34,000. Harbor Investment Advisory LLC purchased a new position in shares of Wingstop in the second quarter valued at about $46,000. Global Retirement Partners LLC bought a new position in shares of Wingstop in the second quarter worth about $62,000. GAMMA Investing LLC boosted its stake in shares of Wingstop by 35.9% in the second quarter. GAMMA Investing LLC now owns 382 shares of the restaurant operator's stock worth $66,000 after acquiring an additional 101 shares during the period. Finally, Northwestern Mutual Wealth Management Co. bought a new position in shares of Wingstop in the second quarter worth about $69,000.

About Wingstop

Wingstop Inc is a franchised restaurant company specializing in cooked-to-order chicken wings and related menu items. Its offerings include classic and boneless wings prepared with a range of flavors, along with chicken sandwiches, tenders, fries, seasoned fries, dips, sides and beverages. The company emphasizes made-to-order food, a digital ordering experience and a menu centered on customizable chicken meals.

Founded in 1994 in Garland, Texas, Wingstop has expanded from a single restaurant into a global brand operated primarily through franchised locations.

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