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

The Wendy’s Company (NASDAQ:WEN) was the target of unusually large options trading activity on Thursday. Stock traders acquired 30,928 put options on the company. This is an increase of 1,416% compared to the typical daily volume of 2,040 put options.

Wendy’s Stock Performance

Shares of NASDAQ:WEN traded down $1.30 on Thursday, reaching $19.01. The company’s stock had a trading volume of 4,040,854 shares, compared to its average volume of 3,494,489. The stock’s 50-day moving average is $17.92 and its two-hundred day moving average is $17.71. Wendy’s has a 52-week low of $15.61 and a 52-week high of $20.65. The company has a debt-to-equity ratio of 12.01, a current ratio of 2.17 and a quick ratio of 2.15. The stock has a market capitalization of $3.90 billion, a P/E ratio of 20.52, a PEG ratio of 2.47 and a beta of 0.80.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings results on Thursday, August 1st. The restaurant operator reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.01). Wendy’s had a return on equity of 67.74% and a net margin of 9.18%. The firm had revenue of $570.73 million for the quarter, compared to analyst estimates of $577.15 million. During the same quarter last year, the firm earned $0.28 earnings per share. The company’s revenue was up 1.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Wendy’s will post 0.98 EPS for the current year.

Wendy’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 5.26%. Wendy’s’s dividend payout ratio (DPR) is 101.01%.

Insiders Place Their Bets

In other news, Director Matthew H. Peltz sold 1,000,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 8th. The shares were sold at an average price of $17.18, for a total transaction of $17,180,000.00. Following the completion of the sale, the director now owns 14,943,466 shares in the company, valued at $256,728,745.88. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 17.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Strategic Investment Solutions Inc. IL acquired a new position in Wendy’s during the second quarter worth about $27,000. Salomon & Ludwin LLC lifted its stake in shares of Wendy’s by 378.0% during the first quarter. Salomon & Ludwin LLC now owns 1,568 shares of the restaurant operator’s stock valued at $30,000 after buying an additional 1,240 shares during the period. Quarry LP purchased a new position in shares of Wendy’s during the second quarter valued at approximately $30,000. International Assets Investment Management LLC purchased a new position in shares of Wendy’s during the second quarter valued at approximately $33,000. Finally, Bessemer Group Inc. lifted its stake in shares of Wendy’s by 483.2% during the first quarter. Bessemer Group Inc. now owns 1,872 shares of the restaurant operator’s stock valued at $35,000 after buying an additional 1,551 shares during the period. 85.96% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

WEN has been the subject of several research reports. Wedbush reiterated a “neutral” rating and issued a $19.50 target price on shares of Wendy’s in a report on Thursday, August 1st. JPMorgan Chase & Co. lifted their target price on shares of Wendy’s from $20.00 to $22.00 and gave the company a “neutral” rating in a report on Monday, September 16th. Barclays dropped their target price on shares of Wendy’s from $20.00 to $18.00 and set an “equal weight” rating for the company in a report on Friday, August 2nd. Morgan Stanley dropped their price target on shares of Wendy’s from $20.00 to $19.00 and set an “equal weight” rating for the company in a research note on Tuesday, July 16th. Finally, Deutsche Bank Aktiengesellschaft dropped their price target on shares of Wendy’s from $20.00 to $18.00 and set a “hold” rating for the company in a research note on Friday, August 2nd. 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 given a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $20.22.

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.