Wingstop (NASDAQ:WING) Stock Price Down 4.2% - Should You Sell?

Key Points

• Wingstop's stock price decreased by 4.2%, falling to $254.02 from a previous close of $265.25, with trading volume down 94% compared to average levels.
• Analysts have varied opinions on Wingstop, with Wall Street Zen downgrading it from "hold" to "sell," while others maintain buy ratings, leading to a consensus rating of "Moderate Buy" with a target price of $376.92.
• The company's recent earnings report showed an earnings per share (EPS) of $1.00, exceeding analyst expectations, and a 12% revenue increase year-over-year, indicating strong financial performance despite the stock decline.

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) traded down 4.2% during trading on Friday . The company traded as low as $255.51 and last traded at $254.02. 51,750 shares were traded during mid-day trading, a decline of 94% from the average session volume of 829,227 shares. The stock had previously closed at $265.25.

Analyst Ratings Changes

WING has been the topic of a number of recent analyst reports. Wall Street Zen lowered shares of Wingstop from a "hold" rating to a "sell" rating in a research note on Saturday, September 13th. TD Securities restated a "buy" rating and issued a $440.00 target price on shares of Wingstop in a research note on Tuesday, June 17th. Raymond James Financial raised Wingstop from an "outperform" rating to a "strong-buy" rating and set a $420.00 price target for the company in a research report on Friday, August 15th. Melius initiated coverage on Wingstop in a report on Monday, July 14th. They issued a "hold" rating and a $350.00 price objective on the stock. Finally, Wedbush reaffirmed an "outperform" rating on shares of Wingstop in a report on Wednesday, September 17th. Four research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Wingstop presently has a consensus rating of "Moderate Buy" and a consensus price target of $376.92.

Wingstop Stock Down 5.0%

The company's 50-day moving average price is $304.50 and its 200-day moving average price is $296.35. The firm has a market cap of $7.04 billion, a price-to-earnings ratio of 42.00, a price-to-earnings-growth ratio of 3.30 and a beta of 1.78.

Wingstop (NASDAQ:WING - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The restaurant operator reported $1.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.12. Wingstop had a negative return on equity of 17.07% and a net margin of 25.61%.The company had revenue of $174.33 million for the quarter, compared to analysts' expectations of $172.60 million. During the same period in the previous year, the firm posted $0.93 EPS. Wingstop's revenue was up 12.0% compared to the same quarter last year. Analysts predict that Wingstop Inc. will post 4.18 earnings per share for the current fiscal year.

Wingstop Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 5th. Stockholders of record on Friday, August 15th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.5%. This is a positive change from Wingstop's previous quarterly dividend of $0.27. The ex-dividend date was Friday, August 15th. Wingstop's dividend payout ratio (DPR) is currently 20.00%.

Insider Transactions at Wingstop

In other Wingstop news, CFO Alex Kaleida sold 5,400 shares of the company's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $376.09, for a total value of $2,030,886.00. Following the completion of the sale, the chief financial officer directly owned 8,362 shares in the company, valued at $3,144,864.58. This represents a 39.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael Skipworth sold 4,500 shares of Wingstop stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $370.34, for a total transaction of $1,666,530.00. Following the transaction, the chief executive officer directly owned 42,777 shares in the company, valued at $15,842,034.18. This trade represents a 9.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 21,838 shares of company stock valued at $8,118,535. Corporate insiders own 0.72% of the company's stock.

Institutional Trading of Wingstop

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Signaturefd LLC boosted its position in shares of Wingstop by 106.9% during the first quarter. Signaturefd LLC now owns 149 shares of the restaurant operator's stock worth $34,000 after buying an additional 77 shares during the period. Quaker Wealth Management LLC grew its stake in shares of Wingstop by 134.2% during the second quarter. Quaker Wealth Management LLC now owns 104 shares of the restaurant operator's stock worth $35,000 after purchasing an additional 408 shares in the last quarter. Ameriflex Group Inc. acquired a new stake in Wingstop in the second quarter valued at $43,000. Hantz Financial Services Inc. lifted its holdings in Wingstop by 4,200.0% during the 2nd quarter. Hantz Financial Services Inc. now owns 129 shares of the restaurant operator's stock worth $43,000 after buying an additional 126 shares during the last quarter. 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, together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order.

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