Wingstop (NASDAQ:WING) Sets New 52-Week Low - Here's Why

Key Points

• Wingstop shares fell to a new 52-week low of $116.25, well below their 50-day and 200-day moving averages, amid broad analyst target-price reductions.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $241.81, although Bernstein downgraded the stock to “Market Perform” and cut its target to $155.
• Wingstop exceeded quarterly EPS expectations ($1.18 versus $1.02) but missed revenue estimates, while revenue increased 6.5% year over year; the company also raised its quarterly dividend to $0.33.

Wingstop Inc. (NASDAQ:WING - Get Free Report)'s stock price reached a new 52-week low on Thursday . The stock traded as low as $116.25 and last traded at $116.7440, with a volume of 1112815 shares trading hands. The stock had previously closed at $123.86.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Citigroup reduced their price target 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. Stephens reaffirmed an "overweight" rating and set a $200.00 price objective on shares of Wingstop in a research report on Thursday, July 30th. Wells Fargo & Company decreased their price target on shares of Wingstop from $170.00 to $165.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Royal Bank Of Canada cut their price objective on shares of Wingstop from $225.00 to $200.00 and set an "outperform" rating on the stock in a research report on Thursday, July 30th. Finally, Sanford C. Bernstein lowered Wingstop from an "outperform" rating to a "market perform" rating and dropped their target price for the stock from $220.00 to $155.00 in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $241.81.

Wingstop Price Performance

The stock has a market cap of $3.18 billion, a price-to-earnings ratio of 27.70, a P/E/G ratio of 1.45 and a beta of 1.81. The business has a 50-day simple moving average of $150.96 and a two-hundred day simple moving average of $184.44.

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

Wingstop Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Saturday, September 5th. Investors of record on Saturday, August 15th will be paid a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 1.1%. This is an increase from Wingstop's previous quarterly dividend of $0.30. The ex-dividend date is Friday, August 14th. Wingstop's dividend payout ratio is presently 28.50%.

Institutional Trading of Wingstop

Several large investors have recently modified their holdings of the stock. SBI Securities Co. Ltd. lifted its position in Wingstop by 76.9% during the fourth quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock worth $33,000 after purchasing an additional 60 shares during the period. 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 valued at $34,000 after buying an additional 95 shares during the period. GW&K Investment Management LLC raised its position in shares of Wingstop by 75.7% in the 4th quarter. GW&K Investment Management LLC now owns 188 shares of the restaurant operator's stock valued at $45,000 after buying an additional 81 shares in the last quarter. Harbor Investment Advisory LLC bought a new stake in shares of Wingstop during the 2nd quarter worth approximately $46,000. Finally, Geneos Wealth Management Inc. boosted its position in shares of Wingstop by 121.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 217 shares of the restaurant operator's stock worth $49,000 after acquiring an additional 119 shares in the last quarter.

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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