Wingstop Inc. (NASDAQ:WING) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Wingstop Inc. (NASDAQ:WING) has been given a consensus rating of “Moderate Buy” by the nineteen research firms that are currently covering the stock, MarketBeat Ratings reports. Six research analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $368.74.

A number of research firms have recently weighed in on WING. Benchmark upgraded shares of Wingstop from a “hold” rating to a “buy” rating and set a $340.00 target price for the company in a report on Thursday, October 31st. Stephens restated an “overweight” rating and set a $468.00 target price on shares of Wingstop in a report on Monday, December 9th. The Goldman Sachs Group upgraded Wingstop from a “neutral” rating to a “buy” rating and cut their price target for the stock from $458.00 to $377.00 in a research note on Friday, November 8th. Wedbush restated an “outperform” rating and set a $390.00 price objective on shares of Wingstop in a research note on Tuesday, November 5th. Finally, TD Cowen decreased their price target on Wingstop from $450.00 to $365.00 and set a “buy” rating for the company in a research note on Thursday, October 31st.

Wingstop Price Performance

NASDAQ:WING opened at $291.75 on Wednesday. The company has a market capitalization of $8.52 billion, a price-to-earnings ratio of 85.06, a PEG ratio of 2.81 and a beta of 1.78. Wingstop has a 1-year low of $241.78 and a 1-year high of $433.86. The business has a 50 day moving average of $329.47 and a 200 day moving average of $371.98.

Wingstop (NASDAQ:WING) last issued its earnings results on Wednesday, October 30th. The restaurant operator reported $0.88 earnings per share for the quarter, missing the consensus estimate of $0.97 by ($0.09). Wingstop had a net margin of 17.05% and a negative return on equity of 22.69%. The company had revenue of $162.50 million for the quarter, compared to analysts’ expectations of $160.24 million. During the same quarter in the prior year, the company earned $0.69 earnings per share. The company’s revenue was up 38.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that Wingstop will post 3.67 EPS for the current year.

Wingstop Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, December 6th. Investors of record on Friday, November 15th were issued a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 0.37%. The ex-dividend date was Friday, November 15th. Wingstop’s dividend payout ratio is currently 31.49%.

Wingstop announced that its Board of Directors has initiated a share repurchase plan on Thursday, December 5th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 5.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, SVP Raj Kapoor sold 266 shares of the firm’s stock in a transaction dated Thursday, December 12th. The stock was sold at an average price of $324.38, for a total transaction of $86,285.08. Following the completion of the transaction, the senior vice president now owns 266 shares in the company, valued at $86,285.08. This trade represents a 50.00 % 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. Company insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Wingstop

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Hollencrest Capital Management purchased a new position in shares of Wingstop in the 2nd quarter worth $27,000. Ashton Thomas Private Wealth LLC purchased a new position in Wingstop in the second quarter worth about $34,000. True Wealth Design LLC bought a new stake in Wingstop during the third quarter worth approximately $36,000. V Square Quantitative Management LLC raised its position in Wingstop by 60.6% during the third quarter. V Square Quantitative Management LLC now owns 106 shares of the restaurant operator’s stock valued at $44,000 after purchasing an additional 40 shares during the period. Finally, Blue Trust Inc. lifted its stake in shares of Wingstop by 384.6% in the 3rd quarter. Blue Trust Inc. now owns 126 shares of the restaurant operator’s stock valued at $53,000 after purchasing an additional 100 shares during the last quarter.

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.