Wingstop (NASDAQ:WING) Trading Up 6.6% – Still a Buy?

Wingstop Inc. (NASDAQ:WING) rose 6.6% during trading on Friday . The company traded as high as $118.00 and last traded at $117.7830. 433,121 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 1,161,402 shares. The stock had previously closed at $110.52.

Wingstop News Summary

Here are the key news stories impacting Wingstop this week:

• Positive Sentiment: Wingstop introduced its first-ever Wing Pass, offering customers a season-long promotion tied to football season. Reports that the initial offering sold out suggest strong consumer interest and could support traffic, brand engagement, and near-term sales. Wingstop sells out of first-ever Wing Pass offering incredible deal
• Positive Sentiment: The company also launched a limited-time Lemon Pepper Trio for football season. Seasonal menu innovation and marketing may help drive customer visits and same-store sales during a key promotional period. Wingstop kicks off football season with Lemon Pepper Trio
• Positive Sentiment: Analysts collectively maintain a “Moderate Buy” average rating, providing some support for the stock despite recent estimate and valuation concerns. Wingstop analyst rating
• Neutral Sentiment: Recent market commentary noted that WING advanced even as the broader market weakened, indicating relative strength. However, this type of price action does not by itself establish a change in earnings fundamentals. Wingstop rises as market takes a dip
• Neutral Sentiment: The reported September short-interest figures show zero shares and a zero-day days-to-cover ratio, but the accompanying “NaN” change suggests the data may be incomplete or erroneous. Investors should not rely on it as a meaningful short-squeeze signal.
• Negative Sentiment: TD Cowen cut its price target from $160 to $120 and downgraded its stance to Hold, leaving only modest implied upside. The reduction signals weaker confidence in Wingstop’s valuation or growth outlook. Read More: Benzinga
• Negative Sentiment: A recent valuation analysis said the stock is more reasonably valued after its decline but warned that fundamentals remain questionable, including concerns about growth durability and operating performance. Wingstop valuation improves but fundamentals are questionable

Analyst Upgrades and Downgrades

WING has been the subject of a number of recent research reports. Wells Fargo & Company cut their price target on Wingstop from $170.00 to $165.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. TD Cowen dropped their price objective on Wingstop from $160.00 to $120.00 and set a “hold” rating on the stock in a report on Friday. Sanford C. Bernstein lowered shares of Wingstop from an “outperform” rating to a “market perform” rating and cut their price objective for the company from $220.00 to $155.00 in a research report on Monday, August 3rd. Royal Bank Of Canada cut their price objective on shares of Wingstop from $225.00 to $200.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. Finally, Robert W. Baird upgraded shares of Wingstop to a “strong-buy” rating in a research note on Monday, August 24th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $240.33.

Wingstop Stock Performance

The company has a market cap of $3.19 billion, a P/E ratio of 27.81, a P/E/G ratio of 1.39 and a beta of 1.79. The firm has a 50 day moving average price of $126.93 and a 200-day moving average price of $156.75.

Wingstop (NASDAQ:WING) last posted its earnings results on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.16. The firm had revenue of $185.56 million during the quarter, compared to analyst estimates of $190.25 million. Wingstop had a negative return on equity of 16.31% and a net margin of 16.15%.The company’s revenue for the quarter was up 6.5% on a year-over-year basis. During the same period in the previous year, the company earned $1.00 EPS. On average, sell-side analysts forecast that Wingstop Inc. will post 4.5 EPS 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 paid a $0.33 dividend. The ex-dividend date was Friday, August 14th. This is a positive change from Wingstop’s previous quarterly dividend of $0.30. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.1%. Wingstop’s dividend payout ratio is presently 31.35%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Baird Financial Group Inc. acquired a new position in Wingstop during the 1st quarter worth $256,000. Jones Financial Companies Lllp grew its position in shares of Wingstop by 2,770.6% in the first quarter. Jones Financial Companies Lllp now owns 1,952 shares of the restaurant operator’s stock valued at $440,000 after purchasing an additional 1,884 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Wingstop by 5.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 92,439 shares of the restaurant operator’s stock worth $20,852,000 after purchasing an additional 4,937 shares during the period. Geneos Wealth Management Inc. increased its stake in shares of Wingstop by 121.4% in the first quarter. Geneos Wealth Management Inc. now owns 217 shares of the restaurant operator’s stock worth $49,000 after purchasing an additional 119 shares during the period. Finally, Sivia Capital Partners LLC lifted its position in shares of Wingstop by 45.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,387 shares of the restaurant operator’s stock worth $467,000 after purchasing an additional 434 shares during the last quarter.

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.