Wingstop (NASDAQ:WING) Stock Falls 6.4% – Time to Sell?

Wingstop Inc. (NASDAQ:WING) fell 6.4% during trading on Wednesday. The company traded as low as $123.07 and last traded at $121.9740. Approximately 97,336 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 1,179,804 shares. The stock had previously closed at $130.31.

Analyst Ratings Changes

WING has been the subject of a number of research analyst reports. Stephens reaffirmed an “overweight” rating and set a $200.00 price objective on shares of Wingstop in a report on Thursday, July 30th. Weiss Ratings cut shares of Wingstop from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, August 17th. DA Davidson lowered their target price on shares of Wingstop from $200.00 to $190.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. TD Cowen dropped their target price on shares of Wingstop from $160.00 to $120.00 and set a “hold” rating for the company in a research report on Friday, September 11th. Finally, Piper Sandler set a $173.00 target price on shares of Wingstop in a research report on Wednesday, July 29th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $233.74.

Wingstop Stock Down 6.3%

The company has a fifty day moving average price of $112.80 and a 200-day moving average price of $138.58. The stock has a market capitalization of $3.33 billion, a P/E ratio of 29.03, a PEG ratio of 1.60 and a beta of 1.81.

Wingstop (NASDAQ:WING) last posted its 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 company had revenue of $185.56 million for the quarter, compared to the consensus estimate of $190.25 million. During the same period in the previous year, the business earned $1.00 earnings per share. The firm’s revenue for the quarter was up 6.5% on a year-over-year basis. As a group, research analysts expect that Wingstop Inc. will post 4.45 earnings per share for the current fiscal year.

Wingstop Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Saturday, September 5th. Stockholders of record on Saturday, August 15th were issued a dividend of $0.33 per share. This is a positive change from Wingstop’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Friday, August 14th. This represents a $1.32 annualized dividend and a dividend yield of 1.1%. Wingstop’s payout ratio is currently 31.35%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in Wingstop in the second quarter worth $481,314,000. State Street Corp raised its stake in Wingstop by 2.0% during the second quarter. State Street Corp now owns 863,951 shares of the restaurant operator’s stock valued at $149,751,000 after purchasing an additional 16,907 shares in the last quarter. Hsbc Holdings PLC bought a new position in Wingstop during the second quarter valued at $1,558,000. TimesSquare Capital Management LLC bought a new position in Wingstop during the second quarter valued at $15,874,000. Finally, Bank of New York Mellon Corp bought a new position in Wingstop during the second quarter valued at $80,456,000.

Wingstop Company Profile

Wingstop Inc is a franchised restaurant company specializing in cooked-to-order chicken wings and related menu items. Its offerings include classic and boneless wings prepared with a range of flavors, along with chicken sandwiches, tenders, fries, seasoned fries, dips, sides and beverages. The company emphasizes made-to-order food, a digital ordering experience and a menu centered on customizable chicken meals.

Founded in 1994 in Garland, Texas, Wingstop has expanded from a single restaurant into a global brand operated primarily through franchised locations.