Wingstop (NASDAQ:WING) Shares Gap Down on Disappointing Earnings

Wingstop Inc. (NASDAQ:WING)’s share price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $368.94, but opened at $315.25. Wingstop shares last traded at $299.39, with a volume of 546,176 shares traded.

The restaurant operator reported $0.88 earnings per share for the quarter, missing the consensus estimate of $0.97 by ($0.09). The firm had revenue of $162.50 million for the quarter, compared to the consensus estimate of $160.24 million. Wingstop had a net margin of 17.05% and a negative return on equity of 22.69%. The company’s revenue for the quarter was up 38.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.69 earnings per share.

Wingstop Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Investors of record on Friday, November 15th will be given a dividend of $0.27 per share. The ex-dividend date of this dividend is Friday, November 15th. This represents a $1.08 dividend on an annualized basis and a yield of 0.38%. Wingstop’s dividend payout ratio (DPR) is currently 31.49%.

Analyst Ratings Changes

WING has been the subject of several recent research reports. Citigroup lifted their target price on shares of Wingstop from $417.00 to $440.00 and gave the company a “neutral” rating in a report on Friday, October 4th. BTIG Research upgraded Wingstop from a “neutral” rating to a “buy” rating and set a $370.00 price target for the company in a report on Thursday. Piper Sandler lifted their price target on Wingstop from $353.00 to $375.00 and gave the stock a “neutral” rating in a research report on Friday, August 2nd. The Goldman Sachs Group increased their price objective on shares of Wingstop from $407.00 to $458.00 and gave the company a “neutral” rating in a research report on Thursday, August 1st. Finally, BMO Capital Markets lifted their target price on shares of Wingstop from $345.00 to $360.00 and gave the stock a “market perform” rating in a report on Thursday, August 1st. Nine research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $371.95.

Insiders Place Their Bets

In related news, SVP Donnie Upshaw sold 3,199 shares of the stock in a transaction that occurred on Thursday, August 8th. The shares were sold at an average price of $372.71, for a total value of $1,192,299.29. Following the completion of the sale, the senior vice president now directly owns 97 shares of the company’s stock, valued at approximately $36,152.87. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.36% of the company’s stock.

Institutional Investors Weigh In On Wingstop

A number of institutional investors have recently bought and sold shares of the business. Hollencrest Capital Management bought a new position in shares of Wingstop in the second quarter worth about $27,000. Ashton Thomas Private Wealth LLC purchased a new stake in Wingstop during the 2nd quarter valued at approximately $34,000. Massmutual Trust Co. FSB ADV raised its position in shares of Wingstop by 60.3% during the second quarter. Massmutual Trust Co. FSB ADV now owns 93 shares of the restaurant operator’s stock valued at $39,000 after buying an additional 35 shares during the last quarter. V Square Quantitative Management LLC lifted its holdings in shares of Wingstop by 60.6% in the third quarter. V Square Quantitative Management LLC now owns 106 shares of the restaurant operator’s stock worth $44,000 after buying an additional 40 shares in the last quarter. Finally, Blue Trust Inc. lifted its holdings in shares of Wingstop by 384.6% in the third quarter. Blue Trust Inc. now owns 126 shares of the restaurant operator’s stock worth $53,000 after buying an additional 100 shares in the last quarter.

Wingstop Stock Down 0.8 %

The company has a market capitalization of $8.43 billion, a PE ratio of 83.87, a PEG ratio of 2.74 and a beta of 1.71. The company’s 50 day moving average is $392.16 and its two-hundred day moving average is $388.27.

About Wingstop

Wingstop Inc, together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order.