Wendy’s Target of Unusually High Options Trading (NASDAQ:WEN)

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

Wendy’s Trading Down 5.9 %

Shares of WEN opened at $19.11 on Friday. Wendy’s has a 12-month low of $15.61 and a 12-month high of $20.65. The firm has a market capitalization of $3.92 billion, a P/E ratio of 19.30, a P/E/G ratio of 2.47 and a beta of 0.80. The firm has a 50-day moving average price of $17.92 and a 200 day moving average price of $17.71. The company has a current ratio of 2.17, a quick ratio of 2.15 and a debt-to-equity ratio of 12.01.

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

Wendy’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 5.23%. Wendy’s’s dividend payout ratio is currently 101.01%.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on WEN shares. Stifel Nicolaus reduced their price objective on Wendy’s from $20.00 to $19.00 and set a “hold” rating for the company in a research note on Friday, August 2nd. Tigress Financial restated a “buy” rating and set a $29.00 price objective on shares of Wendy’s in a research note on Wednesday, September 4th. Piper Sandler cut their price target on Wendy’s from $23.00 to $19.00 and set an “overweight” rating on the stock in a research report on Friday, August 2nd. TD Cowen upped their target price on Wendy’s from $17.00 to $19.00 and gave the stock a “hold” rating in a research note on Wednesday, October 16th. Finally, Wolfe Research upgraded Wendy’s to a “strong-buy” rating in a research report on Friday, September 13th. One equities research analyst has rated the stock with a sell rating, fourteen have given a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $20.22.

Insider Buying and Selling

In related news, Director Matthew H. Peltz sold 1,000,000 shares of the 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 of the company’s stock, valued at $256,728,745.88. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 17.10% of the stock is currently owned by company insiders.

Institutional Trading of Wendy’s

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Strategic Investment Solutions Inc. IL purchased a new stake in Wendy’s during the 2nd quarter worth approximately $27,000. Salomon & Ludwin LLC raised its stake in shares of Wendy’s by 378.0% in the first quarter. Salomon & Ludwin LLC now owns 1,568 shares of the restaurant operator’s stock valued at $30,000 after acquiring an additional 1,240 shares in the last quarter. Quarry LP purchased a new position in Wendy’s in the second quarter valued at $30,000. International Assets Investment Management LLC acquired a new position in Wendy’s during the 2nd quarter worth $33,000. Finally, Bessemer Group Inc. grew its stake in Wendy’s by 483.2% during the 1st quarter. Bessemer Group Inc. now owns 1,872 shares of the restaurant operator’s stock worth $35,000 after purchasing an additional 1,551 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.