Wendy’s Sees Unusually Large Options Volume (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the recipient of some unusual options trading activity on Monday. Stock traders bought 20,439 put options on the company. This represents an increase of 411% compared to the average volume of 4,002 put options.

Wendy’s Trading Down 3.5 %

NASDAQ WEN opened at $14.55 on Wednesday. Wendy’s has a 12 month low of $13.72 and a 12 month high of $20.65. The stock has a 50-day simple moving average of $14.97 and a 200 day simple moving average of $16.80. The company has a current ratio of 1.85, a quick ratio of 1.83 and a debt-to-equity ratio of 12.48. The company has a market capitalization of $2.92 billion, a PE ratio of 15.32, a P/E/G ratio of 2.00 and a beta of 0.73.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings results on Thursday, February 13th. The restaurant operator reported $0.25 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.01. The company had revenue of $574.27 million during the quarter, compared to analysts’ expectations of $564.17 million. Wendy’s had a return on equity of 75.56% and a net margin of 8.65%. Research analysts forecast that Wendy’s will post 0.99 EPS for the current year.

Wendy’s Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 17th. Investors of record on Monday, March 3rd were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 6.87%. The ex-dividend date of this dividend was Monday, March 3rd. Wendy’s’s payout ratio is presently 105.26%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $17.00 price objective (down previously from $20.00) on shares of Wendy’s in a report on Wednesday, February 26th. Royal Bank of Canada reiterated a “sector perform” rating and issued a $17.00 price objective on shares of Wendy’s in a research report on Tuesday, March 4th. Argus raised Wendy’s to a “strong-buy” rating in a research note on Tuesday, February 18th. Stifel Nicolaus lowered their target price on Wendy’s from $17.00 to $16.00 and set a “hold” rating for the company in a research note on Wednesday, February 19th. Finally, TD Securities reaffirmed a “hold” rating and issued a $16.00 price target on shares of Wendy’s in a report on Friday, March 7th. Two analysts have rated the stock with a sell rating, twelve have given a hold rating, four have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Wendy’s has a consensus rating of “Hold” and an average target price of $18.08.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WEN. Blue Trust Inc. raised its position in shares of Wendy’s by 670.3% during the fourth quarter. Blue Trust Inc. now owns 1,402 shares of the restaurant operator’s stock worth $25,000 after purchasing an additional 1,220 shares during the period. SBI Securities Co. Ltd. acquired a new stake in Wendy’s during the 4th quarter worth approximately $30,000. Colonial Trust Co SC bought a new position in Wendy’s in the fourth quarter valued at approximately $31,000. GAMMA Investing LLC lifted its stake in Wendy’s by 168.1% in the fourth quarter. GAMMA Investing LLC now owns 2,233 shares of the restaurant operator’s stock valued at $36,000 after buying an additional 1,400 shares in the last quarter. Finally, Hillsdale Investment Management Inc. acquired a new position in shares of Wendy’s in the fourth quarter valued at approximately $46,000. 85.96% of the stock is currently owned by institutional investors.

About Wendy’s

The Wendy’s Co engages in operating, developing, and franchising a system of quick-service restaurants. It operates through the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development. The Wendy’s U.S. segment includes the operation and franchising of Wendy’s restaurants in the U.S.