The Wendy’s Company (NASDAQ:WEN) Sees Large Increase in Short Interest

The Wendy’s Company (NASDAQ:WEN) was the target of a significant growth in short interest during the month of September. As of September 15th, there was short interest totalling 14,050,000 shares, a growth of 26.7% from the August 31st total of 11,090,000 shares. Based on an average daily volume of 3,580,000 shares, the days-to-cover ratio is presently 3.9 days. Currently, 7.6% of the shares of the company are short sold.

Wendy’s Stock Performance

Wendy’s stock opened at $17.79 on Friday. Wendy’s has a fifty-two week low of $15.61 and a fifty-two week high of $20.65. The company has a market capitalization of $3.65 billion, a price-to-earnings ratio of 17.97, a PEG ratio of 2.33 and a beta of 0.80. The stock has a fifty day moving average of $17.07 and a two-hundred day moving average of $17.66. The company has a debt-to-equity ratio of 12.01, a quick ratio of 2.15 and a current ratio of 2.17.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings data on Thursday, August 1st. The restaurant operator reported $0.27 EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.01). The company had revenue of $570.73 million for the quarter, compared to analysts’ expectations of $577.15 million. Wendy’s had a return on equity of 67.74% and a net margin of 9.18%. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.28 EPS. On average, analysts anticipate that Wendy’s will post 0.98 EPS for the current fiscal year.

Wendy’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 5.62%. The ex-dividend date of this dividend was Tuesday, September 3rd. Wendy’s’s payout ratio is 101.01%.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Wedbush reiterated a “neutral” rating and set a $19.50 target price on shares of Wendy’s in a research report on Thursday, August 1st. BMO Capital Markets cut their price objective on Wendy’s from $22.00 to $19.00 and set a “market perform” rating for the company in a research report on Friday, August 2nd. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Wendy’s from $20.00 to $18.00 and set a “hold” rating on the stock in a research report on Friday, August 2nd. Wolfe Research upgraded shares of Wendy’s to a “strong-buy” rating in a report on Friday, September 13th. Finally, Loop Capital reissued a “buy” rating and set a $26.00 price objective on shares of Wendy’s in a report on Monday, July 15th. One equities research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $20.24.

Insider Buying and Selling

In other Wendy’s news, Director Matthew H. Peltz sold 1,000,000 shares of the business’s stock in a transaction on Thursday, August 8th. The shares were sold at an average price of $17.18, for a total value of $17,180,000.00. Following the transaction, the director now directly owns 14,943,466 shares of the company’s stock, valued at approximately $256,728,745.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 17.10% of the company’s stock.

Institutional Trading of Wendy’s

A number of hedge funds have recently bought and sold shares of the company. Strategic Investment Solutions Inc. IL purchased a new position in shares of Wendy’s during the 2nd quarter worth $27,000. Salomon & Ludwin LLC boosted its stake in Wendy’s by 378.0% in the 1st quarter. Salomon & Ludwin LLC now owns 1,568 shares of the restaurant operator’s stock worth $30,000 after buying an additional 1,240 shares during the last quarter. Quarry LP purchased a new stake in Wendy’s in the 2nd quarter valued at about $30,000. International Assets Investment Management LLC acquired a new position in shares of Wendy’s during the 2nd quarter valued at about $33,000. Finally, Bessemer Group Inc. lifted its holdings in shares of Wendy’s by 483.2% during the 1st quarter. Bessemer Group Inc. now owns 1,872 shares of the restaurant operator’s stock worth $35,000 after acquiring an additional 1,551 shares during the period. Institutional investors and hedge funds own 85.96% of the company’s stock.

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.