Wendy’s (NASDAQ:WEN) Reaches New 1-Year Low Following Insider Selling

The Wendy’s Company (NASDAQ:WEN)’s stock price hit a new 52-week low during mid-day trading on Tuesday following insider selling activity. The company traded as low as $11.90 and last traded at $11.93, with a volume of 2022566 shares changing hands. The stock had previously closed at $12.52.

Specifically, insider Abigail E. Pringle sold 136,819 shares of Wendy’s stock in a transaction on Monday, May 5th. The shares were sold at an average price of $12.81, for a total value of $1,752,651.39. Following the transaction, the insider now owns 203,005 shares in the company, valued at $2,600,494.05. This trade represents a 40.26 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Wall Street Analyst Weigh In

A number of analysts have recently commented on WEN shares. Morgan Stanley dropped their price objective on Wendy’s from $14.00 to $13.00 and set an “underweight” rating for the company in a report on Monday. Loop Capital dropped their price target on Wendy’s from $26.00 to $21.00 and set a “buy” rating for the company in a research note on Monday. Argus raised Wendy’s to a “strong-buy” rating in a research note on Tuesday, February 18th. Citigroup increased their target price on shares of Wendy’s from $15.50 to $16.50 and gave the stock a “neutral” rating in a research report on Friday, March 7th. Finally, Barclays cut their price target on shares of Wendy’s from $14.00 to $13.00 and set an “equal weight” rating on the stock in a report on Monday. Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating, five have given a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $16.53.

Wendy’s Stock Performance

The company has a debt-to-equity ratio of 12.48, a current ratio of 1.85 and a quick ratio of 1.83. The stock has a 50-day moving average price of $13.90 and a 200-day moving average price of $15.76. The firm has a market capitalization of $2.33 billion, a PE ratio of 12.49, a price-to-earnings-growth ratio of 2.00 and a beta of 0.40.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings data on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.20. Wendy’s had a return on equity of 75.56% and a net margin of 8.65%. The company had revenue of $523.47 million for the quarter, compared to the consensus estimate of $530.11 million. During the same period in the previous year, the business earned $0.23 EPS. Wendy’s’s revenue for the quarter was down 2.1% compared to the same quarter last year. On average, research analysts expect that The Wendy’s Company will post 0.99 EPS for the current fiscal year.

Wendy’s Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 16th. Investors of record on Monday, June 2nd will be issued a $0.14 dividend. The ex-dividend date of this dividend is Monday, June 2nd. This represents a $0.56 annualized dividend and a yield of 4.72%. Wendy’s’s dividend payout ratio is presently 59.57%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Blue Trust Inc. raised its stake in shares of Wendy’s by 670.3% in the 4th quarter. Blue Trust Inc. now owns 1,402 shares of the restaurant operator’s stock valued at $25,000 after purchasing an additional 1,220 shares in the last quarter. SBI Securities Co. Ltd. bought a new stake in Wendy’s in the fourth quarter valued at about $30,000. Colonial Trust Co SC acquired a new stake in Wendy’s during the fourth quarter valued at approximately $31,000. Farther Finance Advisors LLC lifted its holdings in Wendy’s by 1,111.9% during the 1st quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator’s stock worth $31,000 after buying an additional 1,957 shares during the last quarter. Finally, GAMMA Investing LLC grew its position in shares of Wendy’s by 168.1% in the 4th quarter. GAMMA Investing LLC now owns 2,233 shares of the restaurant operator’s stock worth $36,000 after acquiring an additional 1,400 shares in the last quarter. 85.96% of the stock is owned by institutional investors and hedge funds.

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.