Wingstop (NASDAQ:WING) Trading Down 5.1% on Analyst Downgrade

Key Points

• Shares fell 5.1% after Guggenheim cut its price target on Wingstop from $255 to $215 (it still carries a buy rating); the stock traded as low as $154 with midday volume sharply below average.
• Several analysts have trimmed price targets recently, yet the sell‑side consensus remains a "Moderate Buy" with an average target of $282.41.
• Two directors recently sold sizable stakes in the company, and Wingstop announced a quarterly dividend of $0.30 (ex‑dividend date May 15, annualized yield ~0.8%).

Wingstop Inc. (NASDAQ:WING - Get Free Report)'s stock price traded down 5.1% on Monday after Guggenheim lowered their price target on the stock from $255.00 to $215.00. Guggenheim currently has a buy rating on the stock. Wingstop traded as low as $154.00 and last traded at $152.5290. 73,623 shares were traded during mid-day trading, a decline of 93% from the average session volume of 1,069,513 shares. The stock had previously closed at $160.73.

A number of other equities analysts have also recently weighed in on WING. Raymond James Financial raised shares of Wingstop from an "outperform" rating to a "strong-buy" rating and decreased their price objective for the company from $325.00 to $240.00 in a research report on Thursday, April 2nd. Mizuho decreased their price objective on shares of Wingstop from $320.00 to $310.00 and set an "outperform" rating for the company in a research report on Friday, January 9th. Barclays decreased their price objective on shares of Wingstop from $330.00 to $235.00 and set an "overweight" rating for the company in a research report on Thursday. Stephens decreased their price objective on shares of Wingstop from $300.00 to $225.00 and set an "overweight" rating for the company in a research report on Thursday. Finally, Citigroup decreased their price objective on shares of Wingstop from $230.00 to $229.00 and set a "buy" rating for the company in a research report on Thursday. 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 given a Sell rating to the company's stock. According to MarketBeat, Wingstop presently has a consensus rating of "Moderate Buy" and an average target price of $282.41.

Insider Activity

In other news, Director Kilandigalu Madati sold 2,700 shares of the stock in a transaction dated Wednesday, February 25th. The shares were 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 approximately $673,465.59. This trade represents a 51.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Wesley S. Mcdonald sold 566 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $250.00, for a total transaction of $141,500.00. Following the transaction, the director directly owned 4,375 shares in the company, valued at $1,093,750. The trade was a 11.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.53% of the company's stock.

Hedge Funds Weigh In On Wingstop

Several large investors have recently modified their holdings of the stock. Carnegie Investment Counsel lifted its position 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 worth $10,614,000 after purchasing an additional 16,764 shares during the last quarter. Citizens Financial Group Inc. RI acquired a new stake in shares of Wingstop during the first quarter worth $291,000. Midwest Trust Co boosted its holdings in shares of Wingstop by 4.7% in the 1st quarter. Midwest Trust Co now owns 17,245 shares of the restaurant operator's stock valued at $2,672,000 after buying an additional 772 shares during the period. Fifth Third Bancorp boosted its holdings in shares of Wingstop by 422.5% in the 1st quarter. Fifth Third Bancorp now owns 8,725 shares of the restaurant operator's stock valued at $1,352,000 after buying an additional 7,055 shares during the period. Finally, Kornitzer Capital Management Inc. KS boosted its holdings in shares of Wingstop by 59.3% in the 1st quarter. Kornitzer Capital Management Inc. KS now owns 18,800 shares of the restaurant operator's stock valued at $2,913,000 after buying an additional 7,000 shares during the period.

Wingstop Stock Performance

The company's fifty day moving average price is $195.85 and its 200 day moving average price is $233.46. The firm has a market capitalization of $4.12 billion, a price-to-earnings ratio of 37.69, a price-to-earnings-growth ratio of 1.80 and a beta of 1.86.

Wingstop (NASDAQ:WING - Get Free Report) last issued its earnings results on Wednesday, April 29th. The restaurant operator reported $1.18 earnings per share (EPS) 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 analysts' expectations of $187.82 million. During the same quarter last year, the company posted $0.99 earnings per share. Wingstop's revenue was up 7.4% on a year-over-year basis. As a group, sell-side analysts expect that Wingstop Inc. will post 4.57 earnings per share for the current year.

Wingstop Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 15th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $1.20 dividend on an annualized basis and a yield of 0.8%. Wingstop's dividend payout ratio (DPR) is currently 29.85%.

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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