Wendy’s (NASDAQ:WEN) Sets New 12-Month Low on Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN) reached a new 52-week low on Monday after Stifel Nicolaus lowered their price target on the stock from $18.00 to $17.00. Stifel Nicolaus currently has a hold rating on the stock. Wendy’s traded as low as $14.89 and last traded at $14.89, with a volume of 1772 shares changing hands. The stock had previously closed at $14.94.

Other analysts also recently issued reports about the company. Wolfe Research upgraded Wendy’s to a “strong-buy” rating in a research note on Friday, September 13th. Truist Financial raised their price objective on shares of Wendy’s from $21.00 to $22.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Wedbush reaffirmed a “neutral” rating and set a $20.00 price objective on shares of Wendy’s in a report on Friday, November 1st. Citigroup boosted their price target on shares of Wendy’s from $18.00 to $18.75 and gave the stock a “neutral” rating in a report on Tuesday, October 8th. Finally, JPMorgan Chase & Co. boosted their target price on Wendy’s from $20.00 to $22.00 and gave the stock a “neutral” rating in a research note on Monday, September 16th. One analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $20.04.

Institutional Trading of Wendy’s

Several institutional investors and hedge funds have recently modified their holdings of WEN. Strategic Investment Solutions Inc. IL purchased a new stake in Wendy’s during the 2nd quarter valued at approximately $27,000. Quarry LP purchased a new stake in Wendy’s in the 2nd quarter worth $30,000. GAMMA Investing LLC boosted its holdings in shares of Wendy’s by 168.1% during the 4th quarter. GAMMA Investing LLC now owns 2,233 shares of the restaurant operator’s stock valued at $36,000 after purchasing an additional 1,400 shares during the last quarter. AM Squared Ltd bought a new stake in shares of Wendy’s in the third quarter worth about $49,000. Finally, Signaturefd LLC lifted its position in shares of Wendy’s by 39.6% in the third quarter. Signaturefd LLC now owns 3,690 shares of the restaurant operator’s stock worth $65,000 after buying an additional 1,046 shares in the last quarter. 85.96% of the stock is currently owned by institutional investors.

Wendy’s Stock Performance

The company has a market capitalization of $3.04 billion, a P/E ratio of 15.72, a price-to-earnings-growth ratio of 2.38 and a beta of 0.78. The business has a 50 day moving average of $17.48 and a 200 day moving average of $17.50. The company has a quick ratio of 2.08, a current ratio of 2.10 and a debt-to-equity ratio of 12.64.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings results on Thursday, October 31st. The restaurant operator reported $0.25 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.25. The company had revenue of $566.70 million for the quarter, compared to the consensus estimate of $560.50 million. Wendy’s had a net margin of 8.76% and a return on equity of 70.02%. Wendy’s’s revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.27 earnings per share. On average, sell-side analysts predict that The Wendy’s Company will post 0.99 earnings per share for the current year.

Wendy’s Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Monday, December 2nd were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 6.70%. The ex-dividend date was Monday, December 2nd. Wendy’s’s dividend payout ratio (DPR) is 105.26%.

About Wendy’s

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.