Wingstop (NASDAQ:WING) Stock Price Up 8.6% - Here's Why

Key Points

• Wingstop shares jumped 8.6% to about $123 during Friday trading, despite trading below both its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $241.81, although several brokerages recently lowered their targets.
• Wingstop beat quarterly earnings expectations with $1.18 in EPS, while revenue rose 6.5% year over year but fell short of forecasts. The company also raised its quarterly dividend from $0.30 to $0.33 per share.

Wingstop Inc. (NASDAQ:WING - Get Free Report)'s share price traded up 8.6% during trading on Friday . The company traded as high as $123.00 and last traded at $123.6930. Approximately 247,609 shares changed hands during trading, a decline of 79% from the average session volume of 1,167,878 shares. The stock had previously closed at $113.90.

Analysts Set New Price Targets

Several brokerages have issued reports on WING. Mizuho dropped their target price on Wingstop from $280.00 to $240.00 and set an "outperform" rating on the stock in a research report on Friday, July 24th. Benchmark reduced their price target on shares of Wingstop from $285.00 to $245.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Morgan Stanley lowered their price objective on shares of Wingstop from $255.00 to $238.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Citigroup dropped their price objective on shares of Wingstop from $237.00 to $208.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Finally, Stephens restated an "overweight" rating and set a $200.00 target price on shares of Wingstop in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $241.81.

Wingstop Price Performance

The company has a 50-day moving average of $146.48 and a two-hundred day moving average of $177.83. The company has a market capitalization of $3.34 billion, a PE ratio of 29.20, a P/E/G ratio of 1.33 and a beta of 1.81.

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

Wingstop Increases Dividend

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

Institutional Trading of Wingstop

Hedge funds and other institutional investors have recently modified their holdings of the company. SBI Securities Co. Ltd. lifted its stake in shares of Wingstop by 76.9% during the 4th quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock valued at $33,000 after buying an additional 60 shares in the last quarter. Rakuten Securities Inc. increased its stake in Wingstop by 197.9% in the 4th quarter. Rakuten Securities Inc. now owns 143 shares of the restaurant operator's stock worth $34,000 after buying an additional 95 shares in the last quarter. GW&K Investment Management LLC raised its holdings in Wingstop by 75.7% during the fourth quarter. GW&K Investment Management LLC now owns 188 shares of the restaurant operator's stock valued at $45,000 after acquiring an additional 81 shares during the period. Allworth Financial LP bought a new stake in Wingstop during the second quarter valued at about $34,000. Finally, Geneos Wealth Management Inc. lifted its position in shares of Wingstop by 121.4% in the first quarter. Geneos Wealth Management Inc. now owns 217 shares of the restaurant operator's stock valued at $49,000 after acquiring an additional 119 shares in the last quarter.

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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