Wingstop (NASDAQ:WING) Shares Up 5.9% - Here's Why

Key Points

• Wingstop shares jumped 5.9% in mid-day trading, reaching as high as $125.94 after closing at $118.96 the previous day.
• Analysts remain broadly bullish despite some target-price adjustments, with a consensus rating of “Moderate Buy” and an average price target of $282.41.
• Recent earnings and a new dividend helped frame investor interest: Wingstop beat EPS expectations in its latest quarter, and it announced a $0.30 quarterly dividend payable June 5.

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) shot up 5.9% during mid-day trading on Friday . The company traded as high as $125.94 and last traded at $126.0020. 1,057,208 shares traded hands during trading, a decline of 6% from the average session volume of 1,121,277 shares. The stock had previously closed at $118.96.

Analysts Set New Price Targets

A number of research firms recently issued reports on WING. Wolfe Research began coverage on shares of Wingstop in a research report on Monday, March 9th. They set an "outperform" rating and a $320.00 price objective for the company. Weiss Ratings cut shares of Wingstop from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 6th. Truist Financial set a $374.00 price objective on shares of Wingstop and gave the stock a "buy" rating in a research report on Wednesday, February 18th. DA Davidson reiterated a "buy" rating and set a $250.00 price objective on shares of Wingstop in a research report on Monday, April 20th. Finally, Royal Bank Of Canada reduced their target price on shares of Wingstop from $275.00 to $250.00 and set an "outperform" rating on the stock in a report on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $282.41.

Wingstop Stock Performance

The stock has a market capitalization of $3.47 billion, a P/E ratio of 31.65, a price-to-earnings-growth ratio of 1.35 and a beta of 1.86. The stock's fifty day simple moving average is $176.22 and its two-hundred day simple moving average is $226.35.

Wingstop (NASDAQ:WING - Get Free Report) last posted its earnings results on Wednesday, April 29th. The restaurant operator reported $1.18 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.16. Wingstop had a net margin of 15.77% and a negative return on equity of 16.22%. The firm had revenue of $183.73 million for the quarter, compared to analyst estimates of $187.82 million. During the same period in the previous year, the firm posted $0.99 EPS. The company's revenue for the quarter was up 7.4% compared to the same quarter last year. As a group, analysts expect that Wingstop Inc. will post 4.58 earnings per share for the current fiscal year.

Wingstop Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 15th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, May 15th. Wingstop's dividend payout ratio is currently 29.85%.

Insider Buying and Selling at Wingstop

In other Wingstop news, Director Wesley S. Mcdonald sold 566 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $250.00, for a total transaction of $141,500.00. Following the completion of the transaction, the director owned 4,375 shares in the company, valued at $1,093,750. This trade represents a 11.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Kilandigalu Madati sold 2,700 shares of the stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $260.73, for a total transaction of $703,971.00. Following the transaction, the director owned 2,583 shares of the company's stock, valued at $673,465.59. This represents a 51.11% decrease in their position. The SEC filing for this sale provides additional information. 0.53% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Wingstop

Several hedge funds have recently bought and sold shares of WING. Lone Pine Capital LLC bought a new stake in Wingstop during the third quarter valued at approximately $375,317,000. Steadfast Capital Management LP lifted its position in Wingstop by 296.2% during the third quarter. Steadfast Capital Management LP now owns 950,521 shares of the restaurant operator's stock valued at $239,227,000 after purchasing an additional 710,621 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its position in Wingstop by 48.1% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,405,894 shares of the restaurant operator's stock valued at $335,292,000 after purchasing an additional 456,861 shares during the last quarter. Capital World Investors lifted its position in Wingstop by 160.6% during the third 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 during the last quarter. Finally, Atreides Management LP bought a new stake in Wingstop during the fourth quarter valued at approximately $93,012,000.

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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