Wingstop (NASDAQ:WING) Shares Down 6.4% – Time to Sell?

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

Key Stories Impacting Wingstop

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Robert W. Baird maintained an “outperform” rating while lowering its price target from $160 to $150, which still implies substantial upside from recent trading levels. Robert W. Baird analyst rating information
• Positive Sentiment: GuruFocus characterized Wingstop as potentially undervalued following a sharp decline and assigned the stock an 83/100 GF Score, offering a valuation-based argument for investors with a longer-term outlook. Wingstop potentially undervalued analysis
• Neutral Sentiment: Wingstop launched Sour Patch Kids Wicked Punch Wings, generating consumer and media attention. The limited-time product could support traffic and brand engagement, although no financial contribution was provided. Wingstop Sour Patch Kids Wicked Punch Wings
• Neutral Sentiment: Wingstop is attracting increased investor attention, but the discussion largely focuses on upcoming earnings expectations and the stock’s recent weakness rather than a new fundamental catalyst. Zacks Wingstop investor attention analysis
• Negative Sentiment: Wall Street analysts have lowered their outlook, with reports suggesting that a recovery in same-store sales may be difficult to achieve. The concern is particularly important ahead of the third-quarter report. Wingstop sales recovery outlook
• Negative Sentiment: Wingstop shares declined sharply in the prior session as analysts cut price targets amid concerns about a broader fast-food slowdown. Another preview expects earnings to decline, increasing the risk of a disappointing report or cautious guidance. Wingstop analyst target cuts and earnings outlook Zacks Wingstop earnings expectations
• Negative Sentiment: The weakness has extended across several restaurant stocks, including CAVA, Wendy’s, Shake Shack and Jack in the Box, indicating that investors are also reducing exposure to the restaurant sector broadly. Restaurant stocks trading lower

Analysts Set New Price Targets

A number of brokerages recently weighed in on WING. BTIG Research reduced their target price on shares of Wingstop from $305.00 to $265.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Piper Sandler set a $173.00 price target on Wingstop in a research note on Wednesday, July 29th. TD Cowen cut their price target on Wingstop from $160.00 to $120.00 and set a “hold” rating on the stock in a report on Friday, September 11th. Wells Fargo & Company cut their price target on Wingstop from $170.00 to $165.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Finally, Benchmark reduced their price objective on Wingstop from $285.00 to $245.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $230.39.

Wingstop Stock Up 0.8%

The company has a market capitalization of $3.29 billion, a price-to-earnings ratio of 28.71, a P/E/G ratio of 1.44 and a beta of 1.81. The stock’s fifty day moving average price is $113.10 and its 200-day moving average price is $138.13.

Wingstop (NASDAQ:WING) last announced its quarterly earnings data 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 net margin of 16.15% and a negative return on equity of 16.31%. The business had revenue of $185.56 million for the quarter, compared to analyst estimates of $190.25 million. During the same quarter in the previous year, the firm posted $1.00 earnings per share. The firm’s revenue for the quarter was up 6.5% on a year-over-year basis. Analysts anticipate that Wingstop Inc. will post 4.45 EPS for the current year.

Wingstop Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Saturday, September 5th. Shareholders of record on Saturday, August 15th were paid a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, August 14th. This is an increase from Wingstop’s previous quarterly dividend of $0.30. Wingstop’s dividend payout ratio (DPR) is presently 31.35%.

Hedge Funds Weigh In On Wingstop

A number of large investors have recently modified their holdings of WING. BlackRock Inc. bought a new stake in Wingstop during the second quarter worth about $481,314,000. State Street Corp boosted its position 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 during the last quarter. Hsbc Holdings PLC acquired a new position in Wingstop during the second quarter valued at approximately $1,558,000. TimesSquare Capital Management LLC bought a new position in Wingstop in the second quarter valued at approximately $15,874,000. Finally, Bank of New York Mellon Corp bought a new position in Wingstop in the second quarter valued at approximately $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.