Wingstop Inc. (NASDAQ:WING) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment remains positive overall: Thirty analysts give Wingstop a consensus “Moderate Buy” rating, with 22 buys, six holds, one sell and one strong buy. The average 12-month price target is $241.81.
• Quarterly results were mixed: Wingstop reported $1.18 in earnings per share, beating expectations of $1.02, while revenue rose 6.5% year over year to $185.56 million but fell short of the $190.25 million consensus estimate.
• The stock has weakened significantly: WING opened at $126.12, well below its 52-week high of $345.81 and its 50-day and 200-day moving averages. The company also raised its quarterly dividend to $0.33 per share, equivalent to a 1.0% annual yield.

Wingstop Inc. (NASDAQ:WING - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the thirty analysts that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, twenty-two have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $241.8148.

Several equities analysts have recently weighed in on the stock. TD Cowen reiterated a "hold" rating on shares of Wingstop in a research note on Wednesday, July 29th. Citigroup reduced their target price on shares of Wingstop from $237.00 to $208.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Wingstop in a research report on Monday, August 3rd. BTIG Research dropped their price target on shares of Wingstop from $305.00 to $265.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group downgraded shares of Wingstop from a "buy" rating to a "neutral" rating and cut their price objective for the company from $290.00 to $190.00 in a research report on Thursday, April 30th.

Institutional Trading of Wingstop

A number of hedge funds and other institutional investors have recently bought and sold shares of WING. SBI Securities Co. Ltd. lifted its position in shares of Wingstop by 76.9% during the 4th quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock valued at $33,000 after buying an additional 60 shares in the last quarter. Rakuten Securities Inc. increased its holdings in Wingstop by 197.9% in the 4th quarter. Rakuten Securities Inc. now owns 143 shares of the restaurant operator's stock worth $34,000 after acquiring an additional 95 shares in the last quarter. Allworth Financial LP purchased a new stake in Wingstop in the 2nd quarter worth approximately $34,000. GW&K Investment Management LLC increased its holdings in Wingstop by 75.7% in the 4th quarter. GW&K Investment Management LLC now owns 188 shares of the restaurant operator's stock worth $45,000 after acquiring an additional 81 shares in the last quarter. Finally, Harbor Investment Advisory LLC bought a new stake in Wingstop during the 2nd quarter worth approximately $46,000.

Wingstop Stock Performance

WING stock opened at $126.12 on Monday. Wingstop has a fifty-two week low of $110.44 and a fifty-two week high of $345.81. The business's 50-day moving average is $146.16 and its two-hundred day moving average is $176.79. The company has a market cap of $3.44 billion, a price-to-earnings ratio of 29.96, a P/E/G ratio of 1.50 and a beta of 1.81.

Wingstop (NASDAQ:WING - Get Free Report) last announced its earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.16. Wingstop had a negative return on equity of 16.31% and a net margin of 16.15%.The business had revenue of $185.56 million for the quarter, compared to analysts' expectations of $190.25 million. During the same period last year, the firm posted $1.00 earnings per share. The business's revenue for the quarter was up 6.5% on a year-over-year basis. Equities analysts predict that Wingstop will post 4.5 earnings per share for the current year.

Wingstop Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Saturday, September 5th. Investors of record on Saturday, August 15th will be given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 1.0%. This is a boost from Wingstop's previous quarterly dividend of $0.30. The ex-dividend date is Friday, August 14th. Wingstop's dividend payout ratio (DPR) is presently 31.35%.

About Wingstop

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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