Wingstop (NASDAQ:WING) Stock Price Up 8.5% - What's Next?

Key Points

• Wingstop shares jumped 8.5% to approximately $162.43, though trading volume was 79% below the stock’s average daily volume.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $222.43, despite several firms recently lowering their targets.
• Wingstop beat quarterly EPS estimates with $1.08 per share, while revenue rose 5.4% year over year but fell short of expectations. The company also announced a quarterly dividend of $0.33 per share, yielding 0.8% annually.

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) rose 8.5% during trading on Monday. The stock traded as high as $165.20 and last traded at $162.4280. Approximately 247,770 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 1,205,434 shares. The stock had previously closed at $149.73.

Analysts Set New Price Targets

WING has been the subject of several research analyst reports. Raymond James Financial restated a "strong-buy" rating on shares of Wingstop in a research note on Thursday. Benchmark dropped their price target on Wingstop from $285.00 to $245.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Sanford C. Bernstein lowered shares of Wingstop from an "outperform" rating to a "market perform" rating and decreased their target price for the company from $220.00 to $155.00 in a research report on Monday, August 3rd. Morgan Stanley reduced their price objective on shares of Wingstop from $202.00 to $198.00 and set an "overweight" rating for the company in a research report on Thursday. Finally, BNP Paribas Exane reiterated an "outperform" rating and set a $182.00 price objective (down from $203.00) on shares of Wingstop in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Wingstop currently has a consensus rating of "Moderate Buy" and a consensus target price of $222.43.

Wingstop Price Performance

The company's 50 day simple moving average is $115.09 and its two-hundred day simple moving average is $164.57. The stock has a market capitalization of $4.54 billion, a P/E ratio of 39.47, a PEG ratio of 1.99 and a beta of 1.81.

Wingstop (NASDAQ:WING - Get Free Report) last issued its earnings results on Wednesday, October 28th. The restaurant operator reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.06. The company had revenue of $185.13 million for the quarter, compared to analyst estimates of $192.89 million. Wingstop had a net margin of 16.03% and a negative return on equity of 15.80%. The company's revenue for the quarter was up 5.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.09 EPS. On average, research analysts anticipate that Wingstop Inc. will post 4.19 earnings per share for the current fiscal year.

Wingstop Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 13th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Friday, November 13th. Wingstop's payout ratio is currently 30.99%.

Institutional Investors Weigh In On Wingstop

Hedge funds and other institutional investors have recently modified their holdings of the company. Oregon Public Employees Retirement Fund raised its position in Wingstop by 1.1% during the first quarter. Oregon Public Employees Retirement Fund now owns 5,672 shares of the restaurant operator's stock valued at $879,000 after purchasing an additional 59 shares in the last quarter. State of Michigan Retirement System increased its holdings in Wingstop by 1.5% in the first quarter. State of Michigan Retirement System now owns 6,672 shares of the restaurant operator's stock valued at $1,034,000 after purchasing an additional 100 shares during the period. GAMMA Investing LLC lifted 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. Hilton Head Capital Partners LLC boosted its holdings in Wingstop by 35.0% in the third quarter. Hilton Head Capital Partners LLC now owns 409 shares of the restaurant operator's stock valued at $43,000 after acquiring an additional 106 shares during the last quarter. Finally, KBC Group NV boosted its holdings in Wingstop by 17.3% in the first quarter. KBC Group NV now owns 888 shares of the restaurant operator's stock valued at $138,000 after acquiring an additional 131 shares during the last quarter.

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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