Wingstop's (WING) Buy Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed a Buy rating on Wingstop with a $250 price target, implying about a 25.6% upside from the stock's current level.
• Analyst sentiment remains broadly positive—MarketBeat shows a consensus of Moderate Buy with an average target of $305.55 and a breakdown of 3 Strong Buy, 27 Buy, 4 Hold and 1 Sell.
• Wingstop recently beat EPS estimates ($1.00 vs. $0.84) while revenue of $175.7M was slightly below expectations but up 8.6% year-over-year; the shares trade around $199 with a market cap of $5.44B and a P/E of 32.2.

Wingstop (NASDAQ:WING - Get Free Report)'s stock had its "buy" rating restated by research analysts at DA Davidson in a note issued to investors on Monday,Benzinga reports. They currently have a $250.00 target price on the restaurant operator's stock. DA Davidson's target price points to a potential upside of 25.61% from the stock's current price.

Several other research analysts have also issued reports on WING. Mizuho reduced their price target on Wingstop from $320.00 to $310.00 and set an "outperform" rating on the stock in a research report on Friday, January 9th. Melius Research set a $350.00 price target on Wingstop in a research report on Tuesday, January 20th. Piper Sandler upgraded Wingstop from a "neutral" rating to an "overweight" rating and reduced their price target for the stock from $283.00 to $190.00 in a research report on Thursday, April 2nd. Barclays reduced their price target on Wingstop from $335.00 to $330.00 and set an "overweight" rating on the stock in a research report on Thursday, February 19th. Finally, Benchmark reduced their price target on Wingstop from $320.00 to $285.00 and set a "buy" rating on the stock in a research report on Monday. Three investment analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, four have assigned a Hold rating and one has issued 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 $305.55.

Wingstop Price Performance

Shares of NASDAQ WING traded up $2.69 during midday trading on Monday, hitting $199.03. The stock had a trading volume of 1,121,516 shares, compared to its average volume of 1,011,369. The company's 50-day simple moving average is $207.90 and its 200 day simple moving average is $237.79. The firm has a market cap of $5.44 billion, a P/E ratio of 32.21, a price-to-earnings-growth ratio of 2.21 and a beta of 2.03. Wingstop has a fifty-two week low of $142.24 and a fifty-two week high of $388.14.

Wingstop (NASDAQ:WING - Get Free Report) last released its earnings results on Wednesday, February 18th. The restaurant operator reported $1.00 EPS for the quarter, beating the consensus estimate of $0.84 by $0.16. Wingstop had a negative return on equity of 16.12% and a net margin of 25.01%.The company had revenue of $175.69 million during the quarter, compared to analysts' expectations of $177.74 million. During the same period last year, the firm earned $0.92 EPS. The business's revenue for the quarter was up 8.6% on a year-over-year basis. Equities analysts expect that Wingstop will post 4.18 EPS for the current fiscal year.

Insider Transactions at Wingstop

In other news, Director Kilandigalu Madati sold 2,700 shares of the business's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $260.73, for a total value of $703,971.00. Following the sale, the director directly owned 2,583 shares in the company, valued at $673,465.59. The trade was a 51.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Wesley S. Mcdonald sold 566 shares of the business's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $250.00, for a total value of $141,500.00. Following the completion of the sale, the director owned 4,375 shares in the company, valued at approximately $1,093,750. This trade represents a 11.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.53% of the company's stock.

Institutional Trading of Wingstop

A number of institutional investors have recently modified their holdings of the company. Cornerstone Planning Group LLC raised its holdings in Wingstop by 1,650.0% during the third quarter. Cornerstone Planning Group LLC now owns 105 shares of the restaurant operator's stock worth $26,000 after acquiring an additional 99 shares in the last quarter. SBI Securities Co. Ltd. raised its holdings in Wingstop by 76.9% during the fourth quarter. SBI Securities Co. Ltd. now owns 138 shares of the restaurant operator's stock worth $33,000 after acquiring an additional 60 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its holdings in Wingstop by 54.3% during the third quarter. CBIZ Investment Advisory Services LLC now owns 142 shares of the restaurant operator's stock worth $36,000 after acquiring an additional 50 shares in the last quarter. Rakuten Securities Inc. raised its holdings in Wingstop by 197.9% during the fourth quarter. Rakuten Securities Inc. now owns 143 shares of the restaurant operator's stock worth $34,000 after acquiring an additional 95 shares in the last quarter. Finally, Pinnacle Holdings LLC bought a new stake in Wingstop during the third quarter worth about $47,000.

Wingstop Company Profile

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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