Goldman Sachs Lowers Wingstop Price Target to $370 Amid Market Changes
Wingstop Inc. (NASDAQ: WING) has seen its price target revised by The Goldman Sachs Group, which lowered its estimate from $430.00 to $370.00 in a research report released on Tuesday, October 3, 2023. Despite this adjustment, Goldman Sachs maintains a “buy” rating on the restaurant operator’s stock.
Several other analysts have also offered their insights on Wingstop recently. Melius initiated coverage on July 14, 2023, assigning a “hold” rating with a price objective of $350.00. Meanwhile, William Blair began coverage on July 9, 2023, providing an “outperform” rating for the company. Stifel Nicolaus adjusted its target price from $405.00 to $375.00 while retaining a “buy” rating in a report dated September 9, 2023. BMO Capital Markets raised its target from $275.00 to $345.00 with a “market perform” rating on July 31, 2023. Additionally, Bank of America revised its target price from $430.00 to $420.00, also maintaining a “buy” rating on July 18, 2023.
According to MarketBeat.com, the overall sentiment among analysts is positive, with four rating the stock as a “Strong Buy,” twenty issuing a “Buy” rating, and five giving it a “Hold” rating. The average rating for Wingstop stands at “Moderate Buy” with an average price target of $376.92.
Recent Financial Performance and Dividend Increase
Wingstop reported its latest quarterly earnings on July 30, 2023. The company announced earnings per share (EPS) of $1.00, exceeding analysts’ expectations of $0.88 by $0.12. Revenue for the quarter reached $174.33 million, surpassing the anticipated $172.60 million. This represents a notable 12% increase in revenue compared to the same quarter last year, during which the company recorded an EPS of $0.93.
In addition to its financial results, Wingstop also announced an increase in its quarterly dividend, paid on September 5, 2023. Shareholders on record as of August 15, 2023 received a dividend of $0.30 per share, which translates to an annualized dividend of $1.20 and a yield of 0.5%. This marks an increase from the previous quarterly dividend of $0.27. The company’s dividend payout ratio (DPR) stands at 20.00%.
Insider Trading and Institutional Investments
Recent insider trading activity has raised eyebrows. On August 1, 2023, Chief Financial Officer Alex Kaleida sold 5,400 shares at an average price of $376.09, totaling approximately $2.03 million. Following this transaction, Kaleida retained 8,362 shares valued at around $3.14 million, marking a significant 39.24% decrease in their ownership.
Senior Vice President Marisa Carona also sold 11,938 shares on the same day, with an average sale price of $370.34, amounting to about $4.42 million. Over the last 90 days, insiders have sold a total of 21,838 shares for a combined value of $8.12 million, while insiders currently hold 0.72% of the company’s stock.
Several institutional investors have recently adjusted their holdings in Wingstop. MassMutual Private Wealth & Trust FSB increased its position by 93.9% during the first quarter, now owning 128 shares valued at $29,000. GAMMA Investing LLC raised its stake substantially by 46,128.7%, acquiring 103,090 shares valued at approximately $23.26 million. Merit Financial Group LLC and other investors have also expanded their shares in the company, indicating a growing interest in Wingstop.
Wingstop Inc. operates a chain of restaurants specializing in chicken wings, offering a variety of flavors and menu items. As the company navigates market challenges and opportunities, its performance and strategic decisions will continue to attract attention from analysts and investors alike.
