The Wendy’s Company (NASDAQ:WEN) Given Consensus Recommendation of “Hold” by Brokerages

The Wendy’s Company (NASDAQ:WEN) has been assigned a consensus recommendation of “Hold” from the fifteen analysts that are currently covering the company, Marketbeat Ratings reports. Twelve equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $22.47.

A number of analysts have recently commented on the stock. Truist Financial reduced their price target on shares of Wendy’s from $23.00 to $22.00 and set a “buy” rating for the company in a research note on Tuesday, February 20th. Barclays lowered shares of Wendy’s from an “overweight” rating to an “equal weight” rating and reduced their price target for the stock from $23.00 to $21.00 in a research note on Wednesday, January 3rd. Stephens assumed coverage on shares of Wendy’s in a research note on Friday, April 12th. They issued an “equal weight” rating and a $20.00 price target for the company. Royal Bank of Canada reduced their price target on shares of Wendy’s from $22.00 to $20.00 and set a “sector perform” rating for the company in a research note on Tuesday, February 20th. Finally, Gordon Haskett lowered shares of Wendy’s from a “buy” rating to a “hold” rating and set a $21.00 price target for the company. in a research note on Tuesday, January 16th.

Wendy’s Price Performance

NASDAQ:WEN opened at $19.82 on Friday. The firm has a market cap of $4.07 billion, a P/E ratio of 20.22, a P/E/G ratio of 2.01 and a beta of 0.82. The company has a debt-to-equity ratio of 10.66, a quick ratio of 2.18 and a current ratio of 2.19. Wendy’s has a fifty-two week low of $17.64 and a fifty-two week high of $23.90. The firm has a 50-day simple moving average of $18.57 and a two-hundred day simple moving average of $19.00.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings data on Thursday, February 15th. The restaurant operator reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.02). The firm had revenue of $540.65 million for the quarter, compared to the consensus estimate of $546.47 million. Wendy’s had a net margin of 9.37% and a return on equity of 56.24%. The firm’s revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.22 earnings per share. Analysts predict that Wendy’s 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 Friday, March 15th. Shareholders of record on Friday, March 1st were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 5.05%. The ex-dividend date was Thursday, February 29th. Wendy’s’s dividend payout ratio is currently 102.04%.

Insider Buying and Selling at Wendy’s

In other Wendy’s news, Director Kenneth W. Gilbert sold 4,500 shares of Wendy’s stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $18.07, for a total transaction of $81,315.00. Following the transaction, the director now owns 31,304 shares of the company’s stock, valued at $565,663.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 17.10% of the company’s stock.

Hedge Funds Weigh In On Wendy’s

Several hedge funds have recently modified their holdings of WEN. Trian Fund Management L.P. lifted its holdings in shares of Wendy’s by 60.9% in the third quarter. Trian Fund Management L.P. now owns 33,350,743 shares of the restaurant operator’s stock worth $680,689,000 after buying an additional 12,618,115 shares in the last quarter. Norges Bank purchased a new position in shares of Wendy’s in the fourth quarter worth $27,627,000. Vanguard Group Inc. lifted its holdings in shares of Wendy’s by 6.1% in the third quarter. Vanguard Group Inc. now owns 20,248,412 shares of the restaurant operator’s stock worth $413,270,000 after buying an additional 1,162,540 shares in the last quarter. Capital Research Global Investors purchased a new position in shares of Wendy’s in the fourth quarter worth $20,574,000. Finally, AQR Capital Management LLC raised its stake in Wendy’s by 193.7% during the third quarter. AQR Capital Management LLC now owns 1,277,958 shares of the restaurant operator’s stock valued at $26,083,000 after purchasing an additional 842,856 shares in the last quarter. Hedge funds and other institutional investors 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.