Wall Street Zen Downgrades Wingstop (NASDAQ:WING) to Sell

Wingstop (NASDAQ:WING) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

A number of other equities analysts have also recently commented on WING. Citigroup raised their target price on Wingstop from $267.00 to $286.00 and gave the stock a “neutral” rating in a report on Wednesday. Morgan Stanley reduced their price target on Wingstop from $363.00 to $345.00 and set an “overweight” rating for the company in a research report on Tuesday, January 20th. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $350.00 price objective (down previously from $420.00) on shares of Wingstop in a research note on Thursday, October 16th. Royal Bank Of Canada lifted their price objective on Wingstop from $300.00 to $350.00 and gave the company an “outperform” rating in a research report on Tuesday, December 9th. Finally, Barclays increased their target price on shares of Wingstop from $295.00 to $335.00 and gave the stock an “overweight” rating in a report on Wednesday, January 7th. Four analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $338.75.

Wingstop Trading Down 0.8%

Shares of NASDAQ WING opened at $264.01 on Friday. Wingstop has a 12-month low of $204.00 and a 12-month high of $388.14. The firm has a market capitalization of $7.34 billion, a price-to-earnings ratio of 43.00, a price-to-earnings-growth ratio of 3.34 and a beta of 1.80. The firm has a 50 day moving average of $261.08 and a 200 day moving average of $272.71.

Wingstop (NASDAQ:WING) last released its quarterly earnings results on Tuesday, November 4th. The restaurant operator reported $1.09 earnings per share for the quarter, topping the consensus estimate of $0.91 by $0.18. Wingstop had a net margin of 25.51% and a negative return on equity of 16.17%. The business had revenue of $175.74 million for the quarter, compared to the consensus estimate of $189.10 million. During the same period last year, the firm earned $0.88 earnings per share. The company’s quarterly revenue was up 8.1% on a year-over-year basis. Sell-side analysts predict that Wingstop will post 4.18 EPS for the current year.

Insiders Place Their Bets

In other Wingstop news, Director Kilandigalu Madati sold 269 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $259.97, for a total value of $69,931.93. Following the completion of the transaction, the director directly owned 5,283 shares in the company, valued at $1,373,421.51. This represents a 4.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.72% of the stock is owned by insiders.

Hedge Funds Weigh In On Wingstop

Hedge funds and other institutional investors have recently modified their holdings of the stock. Lone Pine Capital LLC purchased a new stake in shares of Wingstop during the 3rd quarter valued at about $375,317,000. Steadfast Capital Management LP increased its stake in Wingstop by 296.2% during the third 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 last quarter. Massachusetts Financial Services Co. MA raised its position in Wingstop by 48.1% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,405,894 shares of the restaurant operator’s stock valued at $335,292,000 after purchasing an additional 456,861 shares during the period. Capital World Investors raised its position in Wingstop by 160.6% during the third quarter. Capital World Investors now owns 740,896 shares of the restaurant operator’s stock valued at $186,469,000 after purchasing an additional 456,637 shares during the period. Finally, Norges Bank bought a new stake in shares of Wingstop in the 2nd quarter valued at approximately $118,211,000.

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.