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

Wingstop Inc. (NASDAQ:WING - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Monday . The company traded as low as $207.53 and last traded at $213.97, with a volume of 581849 shares trading hands. The stock had previously closed at $227.12.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on WING. Morgan Stanley lowered their price objective on shares of Wingstop from $389.00 to $375.00 and set an "overweight" rating on the stock in a research note on Thursday, February 20th. Wedbush decreased their price target on shares of Wingstop from $390.00 to $355.00 and set an "outperform" rating on the stock in a research report on Thursday, February 20th. Barclays cut their price objective on shares of Wingstop from $359.00 to $315.00 and set an "overweight" rating for the company in a research report on Thursday, February 20th. BMO Capital Markets decreased their target price on Wingstop from $335.00 to $300.00 and set a "market perform" rating on the stock in a report on Thursday, February 20th. Finally, UBS Group cut their price target on Wingstop from $330.00 to $300.00 and set a "neutral" rating for the company in a report on Thursday, February 20th. Seven analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. According to MarketBeat, Wingstop currently has an average rating of "Moderate Buy" and a consensus price target of $357.67.

Wingstop Stock Down 3.3 %

The stock's 50 day moving average is $272.47 and its 200-day moving average is $326.37. The company has a market cap of $6.08 billion, a PE ratio of 57.20, a P/E/G ratio of 2.27 and a beta of 1.88.

Remove Ads

Wingstop Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 28th. Investors of record on Friday, March 7th will be issued a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.51%. The ex-dividend date is Friday, March 7th. Wingstop's payout ratio is 29.11%.

Wingstop announced that its Board of Directors has authorized a stock buyback program on Thursday, December 5th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 5.1% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Wingstop

A number of institutional investors and hedge funds have recently modified their holdings of WING. American Century Companies Inc. boosted its stake in Wingstop by 1.9% during the fourth quarter. American Century Companies Inc. now owns 1,206,062 shares of the restaurant operator's stock worth $342,763,000 after buying an additional 22,552 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Wingstop by 29.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,150,217 shares of the restaurant operator's stock worth $326,893,000 after acquiring an additional 262,229 shares during the last quarter. State Street Corp boosted its stake in shares of Wingstop by 1.5% during the 3rd quarter. State Street Corp now owns 861,783 shares of the restaurant operator's stock worth $358,571,000 after purchasing an additional 12,549 shares during the period. Franklin Resources Inc. grew its holdings in Wingstop by 0.9% during the 3rd quarter. Franklin Resources Inc. now owns 816,991 shares of the restaurant operator's stock valued at $326,020,000 after purchasing an additional 7,204 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its stake in shares of Wingstop by 23.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 801,732 shares of the restaurant operator's stock valued at $227,852,000 after purchasing an additional 154,055 shares during the period.

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.