Wingstop (NASDAQ:WING) Now Covered by DA Davidson

Key Points

• DA Davidson initiated coverage of Wingstop with a Buy rating and a $330 price target, implying roughly a 39.6% upside
• Wingstop's latest quarter delivered $1.00 EPS versus a $0.84 estimate and revenue of $175.7M (slightly below the $177.7M estimate) with revenue up 8.6% year‑over‑year; shares trade around $236 with a $6.5B market cap and a P/E of 38.26.
• Corporate insiders have been selling recently, including a director who sold 2,700 shares for about $704K and another who sold 566 shares, and insiders now own roughly 0.72% of the company.

DA Davidson began coverage on shares of Wingstop (NASDAQ:WING - Get Free Report) in a research note issued on Friday,Benzinga reports. The firm set a "buy" rating and a $330.00 price target on the restaurant operator's stock. DA Davidson's price target suggests a potential upside of 39.56% from the stock's current price.

Several other research firms have also recently weighed in on WING. TD Cowen reaffirmed a "hold" rating and set a $285.00 price objective on shares of Wingstop in a research report on Wednesday, February 18th. Truist Financial set a $374.00 target price on Wingstop and gave the company a "buy" rating in a research note on Wednesday, February 18th. Barclays dropped their price target on Wingstop from $335.00 to $330.00 and set an "overweight" rating on the stock in a research report on Thursday, February 19th. Morgan Stanley decreased their price objective on Wingstop from $363.00 to $345.00 and set an "overweight" rating for the company in a report on Tuesday, January 20th. Finally, Mizuho reduced their target price on shares of Wingstop from $320.00 to $310.00 and set an "outperform" rating on the stock in a research report on Friday, January 9th. Four analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $335.86.

Wingstop Trading Down 1.2%

Shares of Wingstop stock opened at $236.46 on Friday. Wingstop has a 12-month low of $204.00 and a 12-month high of $388.14. The company has a market cap of $6.50 billion, a P/E ratio of 38.26, a PEG ratio of 2.62 and a beta of 1.82. The company's fifty day simple moving average is $259.91 and its two-hundred day simple moving average is $262.11.

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

Insider Activity

In related news, Director Kilandigalu Madati sold 2,700 shares of the firm's stock in a transaction that occurred on 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 owned 2,583 shares of the company's stock, valued at $673,465.59. This trade represents a 51.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Wesley S. Mcdonald sold 566 shares of the business's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $250.00, for a total value of $141,500.00. Following the completion of the transaction, the director owned 4,375 shares of the company's stock, valued at $1,093,750. This represents a 11.46% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.72% of the company's stock.

Institutional Trading of Wingstop

Several large investors have recently added to or reduced their stakes in WING. Cornerstone Planning Group LLC increased its position in Wingstop by 1,650.0% in the third quarter. Cornerstone Planning Group LLC now owns 105 shares of the restaurant operator's stock worth $26,000 after buying an additional 99 shares in the last quarter. SBI Securities Co. Ltd. grew its stake 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 acquiring an additional 60 shares during the period. CBIZ Investment Advisory Services LLC increased its holdings in Wingstop by 54.3% in the 3rd quarter. CBIZ Investment Advisory Services LLC now owns 142 shares of the restaurant operator's stock worth $36,000 after acquiring an additional 50 shares in the last quarter. Rakuten Securities Inc. raised its stake in Wingstop by 197.9% during 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 during the period. Finally, True Wealth Design LLC lifted its holdings in Wingstop by 623.8% during the second quarter. True Wealth Design LLC now owns 152 shares of the restaurant operator's stock valued at $51,000 after purchasing an additional 131 shares in the last quarter.

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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