Wendy’s (NASDAQ:WEN) Shares Up 3.1% – Here’s Why

by · The Markets Daily

Shares of The Wendy’s Company (NASDAQ:WEN – Get Free Report) rose 3.1% during trading on Thursday . The stock traded as high as $18.14 and last traded at $18.14. Approximately 664,263 shares changed hands during trading, a decline of 80% from the average daily volume of 3,385,315 shares. The stock had previously closed at $17.59.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Barclays reduced their price target on shares of Wendy’s from $20.00 to $18.00 and set an “equal weight” rating for the company in a report on Friday, August 2nd. Stephens reaffirmed an “equal weight” rating and issued a $19.00 target price on shares of Wendy’s in a research note on Tuesday. Tigress Financial restated a “buy” rating and issued a $29.00 price target on shares of Wendy’s in a report on Wednesday, September 4th. Citigroup upped their price objective on Wendy’s from $18.00 to $18.75 and gave the stock a “neutral” rating in a research report on Tuesday. Finally, Loop Capital reissued a “buy” rating and issued a $26.00 target price on shares of Wendy’s in a research report on Monday, July 15th. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating, four have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Wendy’s presently has a consensus rating of “Hold” and a consensus target price of $20.12.

View Our Latest Report on WEN

Wendy’s Stock Performance

The company has a debt-to-equity ratio of 12.01, a quick ratio of 2.15 and a current ratio of 2.17. The company has a market capitalization of $3.78 billion, a P/E ratio of 19.00, a PEG ratio of 2.32 and a beta of 0.80. The stock’s fifty day moving average price is $17.22 and its 200-day moving average price is $17.61.

Wendy’s (NASDAQ:WEN – Get Free Report) last released its quarterly earnings data on Thursday, August 1st. The restaurant operator reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.01). Wendy’s had a net margin of 9.18% and a return on equity of 67.74%. The business had revenue of $570.73 million during the quarter, compared to the consensus estimate of $577.15 million. During the same quarter in the prior year, the company earned $0.28 EPS. Wendy’s’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, research analysts anticipate that The Wendy’s Company will post 0.98 EPS for the current fiscal year.

Wendy’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd were given a dividend of $0.25 per share. The ex-dividend date was Tuesday, September 3rd. This represents a $1.00 dividend on an annualized basis and a yield of 5.37%. Wendy’s’s dividend payout ratio (DPR) is 102.04%.

Insider Buying and Selling at Wendy’s

In other news, Director Matthew H. Peltz sold 1,000,000 shares of the firm’s stock in a transaction dated Thursday, August 8th. The shares were sold at an average price of $17.18, for a total transaction of $17,180,000.00. Following the completion of the sale, the director now owns 14,943,466 shares in the company, valued at approximately $256,728,745.88. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 17.10% of the company’s stock.

Institutional Trading of Wendy’s

Several hedge funds have recently added to or reduced their stakes in the company. Arizona State Retirement System grew its holdings in Wendy’s by 1.5% in the 2nd quarter. Arizona State Retirement System now owns 48,893 shares of the restaurant operator’s stock valued at $829,000 after buying an additional 711 shares in the last quarter. Janney Montgomery Scott LLC increased its position in Wendy’s by 5.6% during the first quarter. Janney Montgomery Scott LLC now owns 15,170 shares of the restaurant operator’s stock worth $286,000 after acquiring an additional 801 shares during the period. Truist Financial Corp raised its stake in Wendy’s by 1.6% in the 2nd quarter. Truist Financial Corp now owns 51,523 shares of the restaurant operator’s stock worth $874,000 after purchasing an additional 810 shares in the last quarter. State of Michigan Retirement System boosted its holdings in Wendy’s by 2.2% in the 1st quarter. State of Michigan Retirement System now owns 40,985 shares of the restaurant operator’s stock valued at $772,000 after purchasing an additional 900 shares during the period. Finally, Hexagon Capital Partners LLC grew its position in shares of Wendy’s by 21.2% during the 3rd quarter. Hexagon Capital Partners LLC now owns 5,432 shares of the restaurant operator’s stock worth $95,000 after purchasing an additional 949 shares in the last quarter. 85.96% of the stock is owned by institutional investors and hedge funds.

About Wendy’s

(Get Free Report)

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.

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