Traders Purchase Large Volume of Wendy’s Put Options (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of some unusual options trading on Tuesday. Stock investors bought 65,055 put options on the stock. This represents an increase of 810% compared to the average volume of 7,150 put options.

Wendy’s Price Performance

Shares of Wendy’s stock opened at $8.92 on Wednesday. Wendy’s has a one year low of $8.55 and a one year high of $20.60. The stock’s fifty day moving average is $9.81 and its 200 day moving average is $11.13. The stock has a market cap of $1.70 billion, a P/E ratio of 9.29, a P/E/G ratio of 1.63 and a beta of 0.38. The company has a debt-to-equity ratio of 28.74, a quick ratio of 1.43 and a current ratio of 1.45.

Wendy’s (NASDAQ:WEN) last announced its earnings results on Friday, August 8th. The restaurant operator reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.04. The company had revenue of $560.93 million for the quarter, compared to analysts’ expectations of $558.95 million. Wendy’s had a return on equity of 103.07% and a net margin of 8.63%.Wendy’s’s revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period last year, the firm earned $0.27 EPS. Wendy’s has set its FY 2025 guidance at 0.820-0.89 EPS. Sell-side analysts anticipate that Wendy’s will post 0.99 earnings per share for the current year.

Wendy’s Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were issued a dividend of $0.14 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $0.56 dividend on an annualized basis and a yield of 6.3%. Wendy’s’s dividend payout ratio (DPR) is currently 58.33%.

Institutional Investors Weigh In On Wendy’s

A number of institutional investors and hedge funds have recently bought and sold shares of WEN. Elevation Point Wealth Partners LLC bought a new stake in Wendy’s during the second quarter valued at about $25,000. Investors Research Corp bought a new stake in Wendy’s during the third quarter valued at about $27,000. Farther Finance Advisors LLC raised its holdings in Wendy’s by 1,111.9% during the first quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator’s stock valued at $31,000 after acquiring an additional 1,957 shares during the period. Steward Partners Investment Advisory LLC raised its holdings in Wendy’s by 35.0% during the second quarter. Steward Partners Investment Advisory LLC now owns 4,017 shares of the restaurant operator’s stock valued at $46,000 after acquiring an additional 1,041 shares during the period. Finally, Caitong International Asset Management Co. Ltd raised its holdings in Wendy’s by 7,180.9% during the first quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator’s stock valued at $50,000 after acquiring an additional 3,375 shares during the period. 85.96% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on WEN shares. Bank of America lowered their price target on Wendy’s from $13.00 to $11.00 and set a “buy” rating on the stock in a report on Friday, July 18th. Wall Street Zen raised Wendy’s from a “sell” rating to a “hold” rating in a report on Saturday, July 12th. Northcoast Research cut Wendy’s from a “neutral” rating to a “sell” rating and set a $7.00 price target on the stock. in a report on Thursday, September 25th. Citigroup raised Wendy’s from a “hold” rating to a “strong-buy” rating in a report on Friday, August 8th. Finally, BMO Capital Markets reissued a “market perform” rating and set a $12.00 price target (down from $15.00) on shares of Wendy’s in a report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fourteen have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $12.43.

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.