Wingstop (NASDAQ:WING) Stock Price Down 5.2% - Should You Sell?

Shares of Wingstop Inc. (NASDAQ:WING - Get Free Report) dropped 5.2% during trading on Wednesday . The company traded as low as $318.18 and last traded at $318.04. Approximately 217,424 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 834,709 shares. The stock had previously closed at $335.45.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on WING shares. Barclays restated an "overweight" rating and set a $410.00 price objective (up previously from $360.00) on shares of Wingstop in a research report on Thursday, June 26th. Guggenheim raised their price target on Wingstop from $280.00 to $325.00 and gave the company a "buy" rating in a research report on Friday, May 9th. BTIG Research upped their price objective on Wingstop from $350.00 to $430.00 and gave the stock a "buy" rating in a report on Wednesday, June 11th. The Goldman Sachs Group raised their price objective on Wingstop from $310.00 to $390.00 and gave the company a "buy" rating in a report on Wednesday, June 4th. Finally, Wells Fargo & Company boosted their target price on Wingstop from $320.00 to $375.00 and gave the stock an "overweight" rating in a research report on Friday, May 30th. One research analyst has rated the stock with a sell rating, four have given a hold rating, nineteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $362.26.

Wingstop Price Performance

The stock has a market capitalization of $9.07 billion, a PE ratio of 54.47, a PEG ratio of 4.56 and a beta of 1.84. The company has a 50 day moving average price of $322.90 and a 200-day moving average price of $280.15.

Wingstop (NASDAQ:WING - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The restaurant operator reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.84 by $0.15. Wingstop had a net margin of 26.45% and a negative return on equity of 18.85%. The business had revenue of $171.09 million for the quarter, compared to analysts' expectations of $172.25 million. During the same quarter in the previous year, the business posted $0.98 earnings per share. The firm's revenue for the quarter was up 17.4% compared to the same quarter last year. As a group, equities analysts anticipate that Wingstop Inc. will post 4.18 earnings per share for the current year.

Wingstop Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 6th. Investors of record on Friday, May 16th were paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 0.33%. The ex-dividend date was Friday, May 16th. Wingstop's payout ratio is currently 18.09%.

Insider Activity

In related news, CEO Michael Skipworth sold 10,000 shares of Wingstop stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of $337.34, for a total transaction of $3,373,400.00. Following the sale, the chief executive officer directly owned 47,190 shares in the company, valued at $15,919,074.60. The trade was a 17.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Raj Kapoor sold 637 shares of the company's stock in a transaction on Monday, May 5th. The stock was sold at an average price of $273.07, for a total value of $173,945.59. Following the completion of the sale, the senior vice president directly owned 517 shares in the company, valued at approximately $141,177.19. The trade was a 55.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.72% of the company's stock.

Hedge Funds Weigh In On Wingstop

Several institutional investors and hedge funds have recently added to or reduced their stakes in WING. T. Rowe Price Investment Management Inc. bought a new position in shares of Wingstop in the 1st quarter worth about $212,672,000. Alyeska Investment Group L.P. purchased a new stake in Wingstop in the fourth quarter worth about $151,802,000. Price T Rowe Associates Inc. MD increased its stake in shares of Wingstop by 43.2% during the first quarter. Price T Rowe Associates Inc. MD now owns 1,646,934 shares of the restaurant operator's stock valued at $371,517,000 after purchasing an additional 496,717 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of Wingstop during the fourth quarter valued at approximately $115,301,000. Finally, Norges Bank purchased a new position in shares of Wingstop during the fourth quarter valued at approximately $106,123,000.

About Wingstop

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.