Wingstop (NASDAQ:WING) Hits New 52-Week Low - Time to Sell?

Key Points

• Wingstop hit a new 52-week low, trading as low as $202.31 (down ~3.8%) with ~301,200 shares changing hands; the stock is well below its 50- and 200-day moving averages and has a market cap of about $5.52 billion.
• Analysts remain largely positive with a consensus rating of "Moderate Buy" and an average price target of $337.29, implying substantial upside from current levels.
• Operationally, Wingstop reported an EPS beat ($1.00 vs. $0.84) but a slight revenue miss, announced a $0.30 quarterly dividend (0.6% yield), and saw recent insider sales by directors.

Wingstop Inc. (NASDAQ:WING - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The company traded as low as $202.31 and last traded at $202.3840, with a volume of 301201 shares changing hands. The stock had previously closed at $208.66.

Analysts Set New Price Targets

A number of brokerages have issued reports on WING. Mizuho cut their price target on shares of Wingstop from $320.00 to $310.00 and set an "outperform" rating on the stock in a research note on Friday, January 9th. Guggenheim lifted their price objective on shares of Wingstop from $300.00 to $315.00 and gave the company a "buy" rating in a report on Thursday, February 19th. BTIG Research reaffirmed a "buy" rating and set a $400.00 target price on shares of Wingstop in a research note on Thursday, February 19th. DA Davidson assumed coverage on shares of Wingstop in a report on Friday, March 6th. They set a "buy" rating and a $330.00 target price on the stock. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Wingstop in a research note on Monday, December 29th. Three research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Wingstop currently has an average rating of "Moderate Buy" and a consensus price target of $337.29.

Wingstop Stock Down 3.8%

The firm has a market capitalization of $5.52 billion, a price-to-earnings ratio of 32.49, a P/E/G ratio of 2.37 and a beta of 1.82. The stock has a 50-day moving average price of $257.93 and a 200 day moving average price of $258.55.

Wingstop (NASDAQ:WING - Get Free Report) last released its quarterly earnings results on Wednesday, February 18th. The restaurant operator reported $1.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.84 by $0.16. Wingstop had a negative return on equity of 16.12% and a net margin of 25.01%.The firm had revenue of $175.69 million for the quarter, compared to the consensus estimate of $177.74 million. During the same quarter last year, the business posted $0.92 EPS. The firm's quarterly revenue was up 8.6% compared to the same quarter last year. As a group, equities analysts forecast that Wingstop Inc. will post 4.18 earnings per share for the current fiscal year.

Wingstop Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Friday, March 6th will be given a $0.30 dividend. The ex-dividend date is Friday, March 6th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.6%. Wingstop's dividend payout ratio (DPR) is currently 19.42%.

Insider Buying and Selling at Wingstop

In related news, Director Wesley S. Mcdonald sold 566 shares of the business's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $250.00, for a total value of $141,500.00. Following the sale, the director directly owned 4,375 shares in the company, valued at $1,093,750. The trade was a 11.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Kilandigalu Madati sold 2,700 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $260.73, for a total transaction of $703,971.00. Following the completion of the sale, the director directly owned 2,583 shares in the company, valued at approximately $673,465.59. The trade was a 51.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.72% of the company's stock.

Institutional Trading of Wingstop

Several institutional investors and hedge funds have recently modified their holdings of the business. Cornerstone Planning Group LLC lifted its stake in Wingstop by 1,650.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 105 shares of the restaurant operator's stock valued at $26,000 after buying an additional 99 shares in the last quarter. SBI Securities Co. Ltd. grew its holdings in 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 during the last quarter. CBIZ Investment Advisory Services LLC increased its position in Wingstop by 54.3% during the third quarter. CBIZ Investment Advisory Services LLC now owns 142 shares of the restaurant operator's stock worth $36,000 after buying an additional 50 shares in the last quarter. Rakuten Securities Inc. raised its holdings in shares of Wingstop by 197.9% in the fourth quarter. Rakuten Securities Inc. now owns 143 shares of the restaurant operator's stock worth $34,000 after acquiring an additional 95 shares during the last quarter. Finally, Pinnacle Holdings LLC acquired a new position in shares of Wingstop in the third quarter worth $47,000.

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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