Wendy’s (NASDAQ:WEN) Reaches New 1-Year Low – Here’s What Happened

The Wendy’s Company (NASDAQ:WEN) shares reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $14.41 and last traded at $14.32, with a volume of 40399 shares trading hands. The stock had previously closed at $14.60.

Analyst Ratings Changes

Several analysts recently commented on WEN shares. Wedbush restated a “neutral” rating and set a $20.00 price target on shares of Wendy’s in a research report on Friday, November 1st. BMO Capital Markets increased their target price on shares of Wendy’s from $19.00 to $20.00 and gave the stock a “market perform” rating in a research note on Friday, November 1st. TD Cowen lifted their price target on Wendy’s from $17.00 to $19.00 and gave the company a “hold” rating in a research note on Wednesday, October 16th. Morgan Stanley reiterated an “underweight” rating and set a $14.00 price target (down previously from $22.00) on shares of Wendy’s in a research report on Tuesday. Finally, Stifel Nicolaus cut their price objective on Wendy’s from $18.00 to $17.00 and set a “hold” rating for the company in a research report on Friday, January 10th. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $19.71.

Wendy’s Stock Performance

The company has a debt-to-equity ratio of 12.64, a quick ratio of 2.08 and a current ratio of 2.10. The firm’s 50 day moving average is $16.91 and its 200-day moving average is $17.43. The company has a market cap of $2.95 billion, a PE ratio of 15.27, a PEG ratio of 1.97 and a beta of 0.78.

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. Wendy’s had a return on equity of 70.02% and a net margin of 8.76%. The business had revenue of $566.70 million during the quarter, compared to analyst estimates of $560.50 million. During the same period in the prior year, the business earned $0.27 earnings per share. The business’s revenue was up 2.9% compared to the same quarter last year. On average, 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 company also recently declared a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $1.00 annualized dividend and a dividend yield of 6.92%. Wendy’s’s payout ratio is 105.26%.

Hedge Funds Weigh In On Wendy’s

Several institutional investors and hedge funds have recently bought and sold shares of WEN. Bartlett & CO. Wealth Management LLC raised its position in Wendy’s by 46.4% in the fourth quarter. Bartlett & CO. Wealth Management LLC now owns 3,107 shares of the restaurant operator’s stock valued at $51,000 after purchasing an additional 985 shares during the period. Krilogy Financial LLC acquired a new stake in shares of Wendy’s during the 4th quarter worth about $212,000. Merit Financial Group LLC purchased a new stake in Wendy’s in the 4th quarter valued at about $464,000. Assenagon Asset Management S.A. acquired a new position in Wendy’s in the fourth quarter valued at about $13,358,000. Finally, Oak Thistle LLC acquired a new position in Wendy’s in the fourth quarter valued at about $516,000. 85.96% of the stock is currently owned by institutional investors and hedge funds.

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.