New York State Teachers Retirement System Reduces Stake in Wingstop Inc.

On November 3, 2024, reports indicated that the New York State Teachers Retirement System has reduced its investment in Wingstop Inc. (NASDAQ:WING) by 0.6% during the third quarter of the year. After selling off 205 shares, the retirement system now holds a total of 33,859 shares in the popular restaurant operator. As per the latest filing with the SEC, the value of New York State Teachers Retirement System's holdings in Wingstop is approximately $14.09 million.

In addition to New York State Teachers Retirement System, several other institutional investors have altered their positions in Wingstop recently. Vanguard Group Inc. increased its stake in Wingstop by 3.7% in the first quarter, bringing its total holdings to 2,924,326 shares, valued at over $1.07 billion. Similarly, Price T Rowe Associates, Inc. MD raised its holdings by 4.7%, now owning 2,273,542 shares valued at $833 million. Renaissance Technologies LLC saw a significant increase of 36.6% in its holdings during the second quarter, acquiring 602,990 shares worth approximately $254.86 million.

Additionally, Massachusetts Financial Services Co. MA added 2.8% to its holdings, totaling 600,905 shares worth about $254 million. Furthermore, Millennium Management LLC raised its stake impressively by 284.1%, now holding 383,184 shares valued at $161.96 million. These changes in investment fortunes indicate a strong interest in Wingstop among institutional investors.

Analyst Ratings and Recommendations

Recent analyst evaluations have varied for Wingstop. BMO Capital Markets recently increased its price target from $345.00 to $360.00 while maintaining a “market perform” rating. Barclays adjusted its target from $470.00 to $380.00 but continued with an “overweight” rating. Morgan Stanley also adjusted its target price upwards from $390.00 to $400.00, providing an “equal weight” assessment.

Analysts from Northcoast Research upgraded the stock from “neutral” to “buy,” setting a new target price at $350.00. Additionally, The Goldman Sachs Group raised its target from $407.00 to $458.00 while maintaining a “neutral” stance. Currently, seven analysts rate the stock as a hold while twelve are in the buy category, resulting in an average rating of “Moderate Buy” with a consensus price target of $379.58 according to MarketBeat.com.

Trading Performance

Wingstop’s stock opened at $296.94 recently, giving it a market capitalization of $8.67 billion. The company's price-to-earnings (P/E) ratio stands at 86.57, with a price-to-earnings growth (P/E/G) ratio of 2.74 and a beta of 1.76. The stock has witnessed fluctuations, with a 50-day simple moving average of $388.10 compared to a 200-day simple moving average of $387.14. Over the past year, Wingstop's stock has reached a low of $196.54 and a high of $433.86.

On October 30, Wingstop reported its quarterly earnings, recording an earnings per share (EPS) of $0.88, which fell short of the consensus estimate of $0.97 by $0.09. However, the revenue for the quarter was reported at $162.50 million, surpassing the expected $160.24 million. Wingstop demonstrated a net margin of 17.05% despite a negative return on equity of 22.69%. Compared to the previous year, revenue increased by 38.8%. Analysts predict an EPS of 3.79 for the current fiscal year.

Dividend Announcement

In another update, Wingstop announced its upcoming quarterly dividend, set to be paid on December 6. Shareholders on record as of November 15 will receive a dividend of $0.27 per share, translating to an annualized dividend yield of 0.36%. The dividend payout ratio stands at 31.49%, indicating a healthy return to its investors.

About Wingstop

Wingstop Inc. operates a franchise model for restaurants under the Wingstop brand, offering a variety of products including classic wings, boneless wings, and chicken sandwiches along with sides such as fries and vegetables.

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