Wendy’s (NASDAQ:WEN) Sets New 52-Week Low on Analyst Downgrade

Shares of The Wendy’s Company (NASDAQ:WEN) reached a new 52-week low during trading 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.

Several other analysts have also commented on the company. Wolfe Research upgraded Wendy’s to a “strong-buy” rating in a report on Friday, September 13th. Stephens reaffirmed an “equal weight” rating and set a $19.00 target price on shares of Wendy’s in a report on Tuesday, November 19th. UBS Group dropped their price objective on shares of Wendy’s from $20.00 to $17.00 and set a “neutral” rating on the stock in a report on Tuesday, January 7th. Truist Financial lifted their price objective on Wendy’s from $21.00 to $22.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Finally, TD Cowen increased their price target on shares of Wendy’s from $17.00 to $19.00 and gave the stock a “hold” rating in a report on Wednesday, October 16th. One investment 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. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $20.04.

Institutional Inflows and Outflows

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

Wendy’s Trading Down 0.1 %

The business has a 50-day simple moving average of $17.48 and a 200-day simple moving average of $17.50. The company has a market cap of $3.04 billion, a PE ratio of 15.72, a price-to-earnings-growth ratio of 2.38 and a beta of 0.78. 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 posted 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 analyst estimates of $560.50 million. Wendy’s had a return on equity of 70.02% and a net margin of 8.76%. Wendy’s’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.27 EPS. On average, analysts predict that The Wendy’s Company will post 0.99 EPS for the current fiscal year.

Wendy’s Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 6.70%. The ex-dividend date was Monday, December 2nd. Wendy’s’s payout ratio 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.