Wingstop (NASDAQ:WING) Shares Down 8% - What's Next?

Key Points

• Wingstop shares fell 8% to approximately $116, extending their decline below the 50-day and 200-day moving averages. The company’s market capitalization was about $3.15 billion.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $241.81, although several firms recently downgraded the stock or reduced their targets.
• Wingstop beat quarterly earnings expectations with $1.18 in EPS versus $1.02 expected, while revenue rose 6.5% year over year but came in below estimates. The company also raised its quarterly dividend to $0.33 per share, implying a 1.1% yield.

Wingstop Inc. (NASDAQ:WING - Get Free Report) shares dropped 8% on Monday . The company traded as low as $117.78 and last traded at $116.0240. 131,532 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 1,170,119 shares. The stock had previously closed at $126.12.

Wall Street Analyst Weigh In

A number of equities analysts have commented on WING shares. BTIG Research cut their price target on shares of Wingstop from $305.00 to $265.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Sanford C. Bernstein downgraded shares of Wingstop from an "outperform" rating to a "market perform" rating and dropped their price objective for the stock from $220.00 to $155.00 in a report on Monday, August 3rd. UBS Group reiterated a "neutral" rating on shares of Wingstop in a research report on Tuesday, July 14th. The Goldman Sachs Group downgraded Wingstop from a "buy" rating to a "neutral" rating and lowered their price target for the company from $290.00 to $190.00 in a research report on Thursday, April 30th. Finally, Bank of America dropped their price target on Wingstop from $264.00 to $234.00 and set a "buy" rating for the company in a research note on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $241.81.

Wingstop Stock Performance

The business's 50-day moving average is $146.16 and its 200 day moving average is $176.79. The company has a market cap of $3.15 billion, a PE ratio of 27.41, a PEG ratio of 1.50 and a beta of 1.81.

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

Wingstop Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Saturday, September 5th. Shareholders of record on Saturday, August 15th will be given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Friday, August 14th. This is a positive change from Wingstop's previous quarterly dividend of $0.30. Wingstop's dividend payout ratio is currently 31.35%.

Hedge Funds Weigh In On Wingstop

A number of hedge funds and other institutional investors have recently made changes to their positions in WING. Carnegie Investment Counsel grew its holdings in shares of Wingstop by 32.4% during the first quarter. Carnegie Investment Counsel now owns 68,489 shares of the restaurant operator's stock valued at $10,614,000 after buying an additional 16,764 shares during the last quarter. Kornitzer Capital Management Inc. KS boosted its position in shares of Wingstop by 113.8% in the fourth quarter. Kornitzer Capital Management Inc. KS now owns 11,800 shares of the restaurant operator's stock worth $2,814,000 after purchasing an additional 6,280 shares during the period. Hussman Strategic Advisors Inc. purchased a new position in Wingstop in the 4th quarter worth approximately $1,502,000. Dimensional Fund Advisors LP boosted its holdings in shares of Wingstop by 17.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 356,292 shares of the restaurant operator's stock valued at $55,216,000 after purchasing an additional 51,703 shares during the last quarter. Finally, TimesSquare Capital Management LLC grew its holdings in Wingstop by 813.7% during the 4th quarter. TimesSquare Capital Management LLC now owns 84,304 shares of the restaurant operator's stock valued at $20,106,000 after buying an additional 75,077 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source