Wingstop (NASDAQ:WING) Sees Unusually-High Trading Volume Following Better-Than-Expected Earnings

Shares of Wingstop Inc. (NASDAQ:WING) saw unusually-high trading volume on Wednesday following a better than expected earnings announcement. Approximately 974,007 shares changed hands during trading, a decline of 6% from the previous session’s volume of 1,033,042 shares.The stock last traded at $160.9540 and had previously closed at $172.97.

The restaurant operator reported $1.18 EPS for the quarter, topping analysts’ consensus estimates of $1.04 by $0.14. Wingstop had a negative return on equity of 16.12% and a net margin of 25.01%.The business’s revenue for the quarter was up 7.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.99 EPS.

Wingstop Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 6th were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Friday, March 6th. Wingstop’s payout ratio is presently 19.42%.

Analysts Set New Price Targets

Several research firms have recently commented on WING. Melius Research set a $350.00 price target on shares of Wingstop in a research report on Tuesday, January 20th. Guggenheim reduced their target price on Wingstop from $315.00 to $255.00 and set a “buy” rating on the stock in a research note on Wednesday, April 1st. Citigroup raised Wingstop from a “neutral” rating to a “buy” rating and reduced their target price for the company from $286.00 to $230.00 in a research note on Tuesday, April 7th. Wells Fargo & Company reduced their target price on Wingstop from $330.00 to $225.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 31st. Finally, TD Cowen reduced their target price on Wingstop from $285.00 to $175.00 and set a “hold” rating on the stock in a research note on Wednesday, April 8th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Wingstop currently has an average rating of “Moderate Buy” and an average target price of $302.62.

Insider Activity at Wingstop

In related news, Director Kilandigalu Madati sold 2,700 shares of the company’s stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $260.73, for a total transaction of $703,971.00. Following the transaction, the director owned 2,583 shares of the company’s stock, valued at approximately $673,465.59. This represents a 51.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Wesley S. Mcdonald sold 566 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $250.00, for a total transaction of $141,500.00. Following the transaction, the director owned 4,375 shares in the company, valued at approximately $1,093,750. The trade was a 11.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.53% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD lifted its holdings in shares of Wingstop by 2.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,111,089 shares of the restaurant operator’s stock worth $503,475,000 after acquiring an additional 58,386 shares during the period. Lone Pine Capital LLC purchased a new position in shares of Wingstop during the 3rd quarter worth about $375,317,000. Massachusetts Financial Services Co. MA lifted its holdings in shares of Wingstop by 48.1% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,405,894 shares of the restaurant operator’s stock worth $335,292,000 after acquiring an additional 456,861 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Wingstop by 6.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,173,613 shares of the restaurant operator’s stock worth $279,895,000 after acquiring an additional 70,224 shares during the period. Finally, Steadfast Capital Management LP lifted its holdings in shares of Wingstop by 296.2% during the 3rd quarter. Steadfast Capital Management LP now owns 950,521 shares of the restaurant operator’s stock worth $239,227,000 after acquiring an additional 710,621 shares during the period.

Wingstop Stock Performance

The company’s fifty day moving average price is $199.93 and its two-hundred day moving average price is $234.69. The firm has a market capitalization of $4.29 billion, a PE ratio of 25.77, a price-to-earnings-growth ratio of 1.98 and a beta of 2.03.

Wingstop Company Profile

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.