On September 11, 2023, Senior Vice President of Corporate Restaurants and Chief People Officer of Wingstop Inc (WING, Financial), Donnie Upshaw, sold 6,699 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 7,787 shares and purchased none.
Wingstop Inc is a fast-casual dining restaurant chain primarily focused on serving chicken wings. The company operates and franchises more than 1,000 restaurants across the United States and nine other countries around the world. Wingstop's menu features classic and boneless wings, chicken strips, and a variety of side dishes including fries, beans, and coleslaw.
The insider's recent sell comes amidst a backdrop of zero insider buys and nine insider sells over the past year for Wingstop Inc. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Wingstop Inc were trading for $165.15 each, giving the stock a market cap of $5.065 billion. This is a significant figure, especially considering the company's price-earnings ratio of 80.47, which is higher than the industry median of 24.12 but lower than the company’s historical median price-earnings ratio.
The GF Value for Wingstop Inc, an intrinsic value estimate developed by GuruFocus, is $219.27. With a price of $165.15, the stock has a price-to-GF-Value ratio of 0.75, indicating that it is modestly undervalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts. The GF Value for Wingstop Inc is shown in the following image:
The insider's decision to sell shares could be influenced by a variety of factors. It's important to note that insider selling does not necessarily indicate a lack of confidence in the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio. However, the trend of insider selling at Wingstop Inc over the past year could be a signal for investors to monitor the company's performance and stock price closely.
In conclusion, the recent sell by SVP Corp Restaurants & CPO Donnie Upshaw is part of a larger trend of insider selling at Wingstop Inc. Despite this, the company's stock appears to be modestly undervalued according to its GF Value. Investors should keep a close eye on further insider transactions and other indicators of the company's performance.
