Wendy’s (NASDAQ:WEN) Reaches New 1-Year Low on Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN) shares hit a new 52-week low during mid-day trading on Tuesday after UBS Group lowered their price target on the stock from $20.00 to $17.00. UBS Group currently has a neutral rating on the stock. Wendy’s traded as low as $15.32 and last traded at $15.36, with a volume of 603116 shares. The stock had previously closed at $15.81.

Several other equities analysts have also commented on WEN. TD Cowen increased their price objective on shares of Wendy’s from $17.00 to $19.00 and gave the company a “hold” rating in a research report on Wednesday, October 16th. BMO Capital Markets increased their price target on shares of Wendy’s from $19.00 to $20.00 and gave the company a “market perform” rating in a report on Friday, November 1st. Stephens reissued an “equal weight” rating and set a $19.00 price objective on shares of Wendy’s in a research note on Tuesday, November 19th. JPMorgan Chase & Co. raised their price objective on Wendy’s from $20.00 to $22.00 and gave the company a “neutral” rating in a research note on Monday, September 16th. Finally, Truist Financial lifted their target price on Wendy’s from $21.00 to $22.00 and gave the stock a “buy” rating in a report on Friday, November 1st. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating, four have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $20.14.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Strategic Investment Solutions Inc. IL bought a new stake in Wendy’s during the second quarter valued at about $27,000. Quarry LP bought a new stake in shares of Wendy’s in the 2nd quarter valued at about $30,000. GAMMA Investing LLC grew its position 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 buying an additional 1,400 shares during the last quarter. AM Squared Ltd bought a new position in shares of Wendy’s during the 3rd quarter worth approximately $49,000. Finally, Signaturefd LLC lifted its position in Wendy’s by 39.6% during the third quarter. Signaturefd LLC now owns 3,690 shares of the restaurant operator’s stock valued at $65,000 after acquiring an additional 1,046 shares during the last quarter. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Wendy’s Trading Down 1.4 %

The company’s 50 day simple moving average is $17.66 and its two-hundred day simple moving average is $17.52. The company has a quick ratio of 2.08, a current ratio of 2.10 and a debt-to-equity ratio of 12.64. The company has a market capitalization of $3.09 billion, a price-to-earnings ratio of 15.98, a P/E/G ratio of 2.42 and a beta of 0.78.

Wendy’s (NASDAQ:WEN) last announced its earnings results on Thursday, October 31st. The restaurant operator reported $0.25 earnings per share for the quarter, hitting the consensus estimate of $0.25. The firm had revenue of $566.70 million for the quarter, compared to the consensus estimate of $560.50 million. Wendy’s had a return on equity of 70.02% and a net margin of 8.76%. The firm’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.27 EPS. As a group, research analysts anticipate that The Wendy’s Company will post 0.99 earnings per share for the current fiscal year.

Wendy’s Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Monday, December 2nd were issued a $0.25 dividend. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 6.59%. Wendy’s’s dividend payout ratio is currently 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.