Investors Buy Large Volume of Call Options on Wingstop (NASDAQ:WING)

Wingstop Inc (NASDAQ:WING) was the target of some unusual options trading on Monday. Stock traders bought 1,299 call options on the company. This represents an increase of approximately 877% compared to the average daily volume of 133 call options.

WING stock opened at $84.26 on Tuesday. The company’s 50 day moving average price is $79.80 and its 200 day moving average price is $89.29. The firm has a market capitalization of $2.36 billion, a price-to-earnings ratio of 100.31, a PEG ratio of 6.88 and a beta of 0.76. Wingstop has a fifty-two week low of $56.95 and a fifty-two week high of $107.43.

Wingstop (NASDAQ:WING) last issued its quarterly earnings results on Wednesday, October 30th. The restaurant operator reported $0.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. Wingstop had a net margin of 10.61% and a negative return on equity of 9.95%. The company had revenue of $49.88 million during the quarter, compared to the consensus estimate of $49.26 million. During the same quarter in the previous year, the firm earned $0.21 earnings per share. The firm’s quarterly revenue was up 30.4% on a year-over-year basis. As a group, sell-side analysts forecast that Wingstop will post 0.77 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 13th. Shareholders of record on Friday, November 29th will be given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.52%. The ex-dividend date of this dividend is Tuesday, November 26th. Wingstop’s dividend payout ratio is presently 52.38%.

Several equities research analysts have weighed in on the stock. BMO Capital Markets set a $108.00 target price on shares of Wingstop and gave the stock a “buy” rating in a report on Tuesday, October 8th. Robert W. Baird raised Wingstop from a “neutral” rating to an “outperform” rating and set a $92.00 target price on the stock in a research note on Monday, November 25th. Goldman Sachs Group restated a “buy” rating and set a $140.00 target price on shares of Wingstop in a report on Monday. Zacks Investment Research raised Wingstop from a “hold” rating to a “buy” rating and set a $98.00 target price for the company in a research report on Saturday, October 5th. Finally, Morgan Stanley boosted their price target on shares of Wingstop from $86.00 to $87.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 31st. One analyst has rated the stock with a sell rating, eight have given a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the stock. Wingstop presently has a consensus rating of “Buy” and a consensus price target of $100.21.

In related news, CEO Charles R. Morrison sold 20,000 shares of Wingstop stock in a transaction that occurred on Tuesday, November 5th. The shares were sold at an average price of $75.80, for a total transaction of $1,516,000.00. Following the transaction, the chief executive officer now owns 88,645 shares of the company’s stock, valued at approximately $6,719,291. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Michael Skipworth sold 2,000 shares of Wingstop stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $82.42, for a total transaction of $164,840.00. The disclosure for this sale can be found here. Corporate insiders own 1.00% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in WING. Arizona State Retirement System raised its stake in Wingstop by 0.8% in the second quarter. Arizona State Retirement System now owns 45,604 shares of the restaurant operator’s stock valued at $4,321,000 after buying an additional 352 shares in the last quarter. Strs Ohio purchased a new position in Wingstop during the 2nd quarter worth approximately $606,000. First Trust Advisors LP grew its stake in Wingstop by 38.8% during the 2nd quarter. First Trust Advisors LP now owns 77,723 shares of the restaurant operator’s stock worth $7,364,000 after buying an additional 21,739 shares during the last quarter. Aperio Group LLC purchased a new position in Wingstop during the 2nd quarter worth approximately $356,000. Finally, Municipal Employees Retirement System of Michigan increased its position in Wingstop by 2.1% during the second quarter. Municipal Employees Retirement System of Michigan now owns 8,770 shares of the restaurant operator’s stock worth $831,000 after buying an additional 180 shares during the period.

Wingstop Company Profile

Wingstop Inc, together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Its restaurants offer cooked-to-order, hand-sauced, and tossed chicken wings. As of December 29, 2018, the company operated approximately 1,252 restaurants in the United States, Mexico, Panama, Singapore, Indonesia, the United Arab Emirates, the United Kingdom, Malaysia, Saudi Arabia, and Colombia.

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