Wingstop (NASDAQ:WING) Hits New 1-Year Low – Should You Sell?

Wingstop Inc. (NASDAQ:WING)’s stock price hit a new 52-week low on Wednesday . The company traded as low as $110.44 and last traded at $111.36, with a volume of 1271494 shares. The stock had previously closed at $117.52.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Sanford C. Bernstein cut Wingstop from an “outperform” rating to a “market perform” rating and dropped their price target for the company from $220.00 to $155.00 in a report on Monday, August 3rd. Weiss Ratings reissued a “hold (c-)” rating on shares of Wingstop in a research note on Monday, August 3rd. Piper Sandler set a $173.00 target price on Wingstop in a report on Wednesday, July 29th. Mizuho cut their target price on Wingstop from $280.00 to $240.00 and set an “outperform” rating on the stock in a research report on Friday, July 24th. Finally, Stephens reaffirmed an “overweight” rating and set a $200.00 target price on shares of Wingstop 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, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Wingstop currently has a consensus rating of “Moderate Buy” and a consensus target price of $241.81.

Wingstop Price Performance

The stock’s fifty day moving average price is $147.73 and its 200-day moving average price is $180.04. The firm has a market cap of $3.03 billion, a price-to-earnings ratio of 26.45, a price-to-earnings-growth ratio of 1.40 and a beta of 1.81.

Wingstop (NASDAQ:WING) last issued its quarterly 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 net margin of 16.15% and a negative return on equity of 16.31%. The business had revenue of $185.56 million during the quarter, compared to the consensus estimate of $190.25 million. During the same quarter in the prior year, the firm earned $1.00 EPS. The firm’s quarterly revenue was up 6.5% on a year-over-year basis. As a group, equities research analysts predict that Wingstop Inc. will post 4.5 EPS for the current fiscal year.

Wingstop Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Saturday, September 5th. Stockholders of record on Saturday, August 15th will be issued a $0.33 dividend. The ex-dividend date is Friday, August 14th. This is an increase from Wingstop’s previous quarterly dividend of $0.30. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.2%. Wingstop’s dividend payout ratio is currently 28.50%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Allworth Financial LP purchased a new position in shares of Wingstop during the second quarter valued at $34,000. B. Metzler seel. Sohn & Co. AG purchased a new stake in Wingstop in the 2nd quarter worth about $3,596,000. Ceredex Value Advisors LLC purchased a new stake in Wingstop in the 2nd quarter worth about $12,507,000. Tocqueville Asset Management L.P. acquired a new stake in Wingstop during the 2nd quarter worth about $217,000. Finally, BlackRock Inc. acquired a new stake in Wingstop during the 2nd quarter worth about $481,314,000.

About Wingstop

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.