Wingstop (NASDAQ:WING) Stock Price Down 5.1% - Time to Sell?

Key Points

• Wingstop shares fell 5.1% to about $116.60 in low-volume trading, with volume down 92% from the daily average. The stock remains below its 200-day moving average of $167.22.
• Analysts remain broadly bullish despite recent target cuts: Wingstop has a consensus rating of “Moderate Buy” and an average price target of $228.96.
• In its latest quarter, Wingstop beat earnings expectations with EPS of $1.18 versus $1.02 expected, while revenue rose 6.5% year over year but came in below estimates.

Wingstop Inc. (NASDAQ:WING - Get Free Report) was down 5.1% during trading on Tuesday. The stock traded as low as $117.55 and last traded at $116.5950. 97,146 shares changed hands during trading, a decline of 92% from the average daily volume of 1,178,915 shares. The stock had previously closed at $122.88.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on WING shares. BTIG Research decreased their price objective on shares of Wingstop from $305.00 to $265.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Morgan Stanley dropped their target price on shares of Wingstop from $238.00 to $202.00 and set an "overweight" rating for the company in a research report on Thursday, October 15th. Citigroup dropped their target price on shares of Wingstop from $208.00 to $191.00 and set a "buy" rating for the company in a research report on Friday, October 16th. Wall Street Zen raised shares of Wingstop from a "sell" rating to a "hold" rating in a research note on Tuesday, July 14th. Finally, Piper Sandler set a $173.00 price target on shares of Wingstop in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $228.96.

Wingstop Trading Down 3.8%

The stock has a market capitalization of $3.22 billion, a P/E ratio of 28.40, a price-to-earnings-growth ratio of 1.44 and a beta of 1.81. The stock's fifty day moving average price is $113.24 and its two-hundred day moving average price is $167.22.

Wingstop (NASDAQ:WING - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.16. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. The business had revenue of $185.56 million during the quarter, compared to analyst estimates of $190.25 million. During the same period in the prior year, the business posted $1.00 earnings per share. The company's revenue was up 6.5% on a year-over-year basis. As a group, analysts expect that Wingstop Inc. will post 4.45 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wingstop

Several hedge funds and other institutional investors have recently modified their holdings of WING. BlackRock Inc. purchased a new position in Wingstop during the second quarter valued at $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 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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