Wingstop (NASDAQ:WING) Stock Price Up 6.6% - Still a Buy?

Key Points

• Wingstop shares rose 6.6% to about $116.84 in mid-day trading, although trading volume was 78% below the average session volume.
• Analysts maintain a broadly positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $241.81, despite several recent target-price cuts and one downgrade to “Sell.”
• Wingstop beat quarterly earnings expectations, reporting $1.18 in EPS versus $1.02 expected, while revenue increased 6.5% year over year. The company also raised its quarterly dividend to $0.33 per share, producing a 1.1% annualized yield.

Wingstop Inc. (NASDAQ:WING - Get Free Report) shares traded up 6.6% during mid-day trading on Wednesday . The company traded as high as $119.03 and last traded at $116.8370. 258,123 shares were traded during trading, a decline of 78% from the average session volume of 1,163,410 shares. The stock had previously closed at $109.60.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Mizuho reduced their target price on Wingstop from $280.00 to $240.00 and set an "outperform" rating for the company in a report on Friday, July 24th. Stephens reissued an "overweight" rating and issued a $200.00 price target on shares of Wingstop in a report on Thursday, July 30th. Weiss Ratings lowered shares of Wingstop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, August 17th. Morgan Stanley reduced their price objective on shares of Wingstop from $255.00 to $238.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, BTIG Research decreased their target price on shares of Wingstop from $305.00 to $265.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Wingstop has a consensus rating of "Moderate Buy" and an average price target of $241.81.

Wingstop Stock Performance

The stock has a market cap of $3.18 billion, a P/E ratio of 27.91, a P/E/G ratio of 1.30 and a beta of 1.79. The stock has a 50-day moving average price of $136.29 and a 200-day moving average price of $163.70.

Wingstop (NASDAQ:WING - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.16. The company had revenue of $185.56 million for the quarter, compared to analysts' expectations of $190.25 million. Wingstop had a net margin of 16.15% and a negative return on equity of 16.31%. Wingstop's revenue for the quarter was up 6.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.00 earnings per share. Sell-side analysts forecast that Wingstop Inc. will post 4.5 earnings per share for the current fiscal year.

Wingstop Increases Dividend

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

Institutional Trading of Wingstop

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Baird Financial Group Inc. bought a new position in Wingstop in the first quarter valued at $256,000. Jones Financial Companies Lllp raised its position in Wingstop by 2,770.6% during the first quarter. Jones Financial Companies Lllp now owns 1,952 shares of the restaurant operator's stock valued at $440,000 after purchasing an additional 1,884 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Wingstop by 5.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 92,439 shares of the restaurant operator's stock worth $20,852,000 after purchasing an additional 4,937 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in Wingstop by 121.4% during the first quarter. Geneos Wealth Management Inc. now owns 217 shares of the restaurant operator's stock worth $49,000 after purchasing an additional 119 shares during the last quarter. Finally, Sivia Capital Partners LLC boosted its holdings in shares of Wingstop by 45.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,387 shares of the restaurant operator's stock worth $467,000 after purchasing an additional 434 shares in the last quarter.

Wingstop Company Profile

Wingstop Inc NASDAQ: WING is a fast-casual restaurant chain specializing in chicken wings and related menu items. Founded in 1994 in Garland, Texas, the company has built its brand around bold, chef-inspired wing flavors and a streamlined service model that caters to dine-in, takeout, delivery and catering orders.

The company's core offerings include both bone-in and boneless chicken wings tossed in a variety of proprietary rubs and sauces, such as Original Hot, Lemon Pepper, and Mango Habanero.

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