Wingstop (NASDAQ:WING) Sees Unusually-High Trading Volume Following Better-Than-Expected Earnings

Key Points

• Beat expectations: Wingstop reported $1.18 EPS vs. a $1.04 consensus and revenue rose 7.4% year-over-year, but shares saw heavy trading and were down about 9.2%, last near $160.95 (market cap ~$4.29B).
• The company declared a quarterly dividend of $0.30 ($1.20 annualized), implying a ~0.8% yield and a payout ratio of ~19.4%.
• Analysts hold a consensus "Moderate Buy" rating with an average target of $302.62, though several firms recently cut targets; notable insider selling was reported, leaving insiders with roughly 0.53% ownership.

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) saw strong trading volume on Wednesday following a stronger than expected earnings report. 974,007 shares changed hands during trading, a decline of 6% from the previous session's volume of 1,033,042 shares.The stock last traded at $160.9540 and had previously closed at $172.97.

The restaurant operator reported $1.18 EPS for the quarter, beating the consensus estimate of $1.04 by $0.14. Wingstop had a net margin of 25.01% and a negative return on equity of 16.12%. Wingstop's revenue was up 7.4% on a year-over-year basis. During the same period last year, the company earned $0.99 EPS.

Wingstop Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 6th were paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Friday, March 6th. Wingstop's dividend payout ratio (DPR) is currently 19.42%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Citigroup upgraded Wingstop from a "neutral" rating to a "buy" rating and dropped their price target for the stock from $286.00 to $230.00 in a research note on Tuesday, April 7th. UBS Group cut their target price on shares of Wingstop from $295.00 to $210.00 and set a "neutral" rating on the stock in a report on Friday. Royal Bank Of Canada cut their target price on shares of Wingstop from $340.00 to $275.00 and set an "outperform" rating on the stock in a report on Monday, April 20th. Melius Research set a $350.00 target price on shares of Wingstop in a report on Tuesday, January 20th. Finally, BTIG Research reaffirmed a "buy" rating and issued a $400.00 target price on shares of Wingstop in a report on Thursday, February 19th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $302.62.

Insider Activity

In other news, Director Wesley S. Mcdonald sold 566 shares of Wingstop 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 owned 4,375 shares of the company's stock, valued at $1,093,750. The trade was a 11.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Kilandigalu Madati sold 2,700 shares of Wingstop 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 position. The SEC filing for this sale provides additional information. 0.53% of the stock is owned by insiders.

Institutional Trading of Wingstop

Several hedge funds and other institutional investors have recently made changes to their positions in the company. WCM Investment Management LLC boosted its position in shares of Wingstop by 123.9% during the 3rd quarter. WCM Investment Management LLC now owns 102,687 shares of the restaurant operator's stock worth $25,861,000 after purchasing an additional 56,833 shares in the last quarter. Lone Pine Capital LLC acquired a new stake in shares of Wingstop in the 3rd quarter worth approximately $375,317,000. TD Asset Management Inc increased its stake in Wingstop by 17.1% in the 3rd quarter. TD Asset Management Inc now owns 57,586 shares of the restaurant operator's stock valued at $14,493,000 after purchasing an additional 8,414 shares in the last quarter. Capital World Investors increased its stake in Wingstop by 160.6% in the 3rd quarter. Capital World Investors now owns 740,896 shares of the restaurant operator's stock valued at $186,469,000 after purchasing an additional 456,637 shares in the last quarter. Finally, SG Americas Securities LLC increased its stake in Wingstop by 553.3% in the 4th quarter. SG Americas Securities LLC now owns 41,349 shares of the restaurant operator's stock valued at $9,861,000 after purchasing an additional 35,020 shares in the last quarter.

Wingstop Trading Down 9.2%

The firm has a 50 day moving average of $199.93 and a two-hundred day moving average of $234.69. The stock has a market capitalization of $4.29 billion, a PE ratio of 25.77, a P/E/G ratio of 1.98 and a beta of 2.03.

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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