Wingstop (NASDAQ:WING) Shares Up 5.8% – Should You Buy?

Wingstop Inc. (NASDAQ:WING) was up 5.8% during trading on Tuesday. The stock traded as high as $106.78 and last traded at $107.7060. Approximately 727,359 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 1,185,467 shares. The stock had previously closed at $101.80.

Analyst Upgrades and Downgrades

WING has been the topic of a number of research reports. Bank of America cut their target price on shares of Wingstop from $264.00 to $234.00 and set a “buy” rating on the stock in a research note on Wednesday, June 24th. DA Davidson decreased their price target on shares of Wingstop from $200.00 to $190.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Wells Fargo & Company lowered their price target on Wingstop from $170.00 to $165.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Morgan Stanley cut their price objective on Wingstop from $255.00 to $238.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Finally, TD Cowen decreased their target price on Wingstop from $160.00 to $120.00 and set a “hold” rating for the company in a research report on Friday, September 11th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Wingstop presently has a consensus rating of “Moderate Buy” and a consensus target price of $236.44.

Wingstop Trading Up 6.6%

The business’s 50-day simple moving average is $115.89 and its two-hundred day simple moving average is $145.29. The company has a market capitalization of $2.96 billion, a PE ratio of 25.58, a PEG ratio of 1.18 and a beta of 1.79.

Wingstop (NASDAQ:WING) last released its earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $190.25 million. During the same period in the prior year, the business posted $1.00 EPS. The business’s revenue was up 6.5% on a year-over-year basis. On average, analysts forecast that Wingstop Inc. will post 4.5 EPS for the current year.

Wingstop Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Saturday, September 5th. Stockholders of record on Saturday, August 15th were given a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, August 14th. This is an increase from Wingstop’s previous quarterly dividend of $0.30. Wingstop’s payout ratio is presently 31.35%.

Hedge Funds Weigh In On Wingstop

Hedge funds have recently bought and sold shares of the company. Allworth Financial LP acquired a new stake in Wingstop during the second quarter valued at approximately $34,000. Harbor Investment Advisory LLC bought a new stake in shares of Wingstop in the 2nd quarter valued at approximately $46,000. Global Retirement Partners LLC acquired a new stake in shares of Wingstop during the 2nd quarter valued at approximately $62,000. GAMMA Investing LLC lifted its stake in Wingstop by 35.9% during the second quarter. GAMMA Investing LLC now owns 382 shares of the restaurant operator’s stock worth $66,000 after purchasing an additional 101 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. acquired a new position in Wingstop in the second quarter worth $69,000.

About Wingstop

Wingstop Inc is a fast-casual restaurant company specializing in cooked-to-order chicken wings and tenders. Its menu also includes fries, seasoned fries, dipping sauces, and beverages, with offerings built around a range of signature flavors and sauces. The company primarily operates through a franchise-based model.

Wingstop was founded in 1994 in Garland, Texas, and has expanded from its original location into a global restaurant brand. Its restaurants serve customers across the United States and in international markets through a network of franchised and company-operated locations.

Wingstop became a publicly traded company in 2015.