Wendy’s (NASDAQ:WEN) Sets New 12-Month Low – Should You Sell?

The Wendy’s Company (NASDAQ:WEN)’s share price hit a new 52-week low during trading on Monday . The company traded as low as $8.37 and last traded at $8.3750, with a volume of 4084106 shares. The stock had previously closed at $8.62.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Citigroup upgraded shares of Wendy’s from a “hold” rating to a “strong-buy” rating in a report on Friday, August 8th. Mizuho initiated coverage on shares of Wendy’s in a research report on Monday, October 27th. They set an “underperform” rating and a $8.00 target price for the company. Cowen reaffirmed a “hold” rating on shares of Wendy’s in a report on Friday, August 8th. Jefferies Financial Group decreased their price objective on Wendy’s from $10.00 to $9.00 and set a “hold” rating for the company in a report on Monday, October 13th. Finally, Sanford C. Bernstein set a $9.00 price objective on Wendy’s in a research report on Wednesday, October 22nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, sixteen have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $10.86.

Wendy’s Price Performance

The company has a debt-to-equity ratio of 28.74, a quick ratio of 1.43 and a current ratio of 1.45. The stock has a 50 day moving average of $9.11 and a 200-day moving average of $10.41. The company has a market cap of $1.60 billion, a PE ratio of 8.75, a price-to-earnings-growth ratio of 1.63 and a beta of 0.38.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings data on Friday, November 7th. The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.04. The firm had revenue of $442.50 million during the quarter, compared to analysts’ expectations of $535.75 million. Wendy’s had a return on equity of 103.07% and a net margin of 8.63%.The company’s revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period last year, the business posted $0.25 earnings per share. Wendy’s has set its FY 2025 guidance at 0.820-0.890 EPS. Equities analysts predict that The Wendy’s Company will post 0.99 earnings per share for the current year.

Wendy’s Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Investors of record on Monday, December 1st will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 6.7%. The ex-dividend date of this dividend is Monday, December 1st. Wendy’s’s dividend payout ratio (DPR) is 59.57%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Marshall Wace LLP acquired a new position in Wendy’s in the third quarter valued at approximately $36,912,000. AQR Capital Management LLC lifted its stake in shares of Wendy’s by 30.1% in the 2nd quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator’s stock valued at $158,092,000 after purchasing an additional 3,205,269 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in Wendy’s by 61.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 5,041,012 shares of the restaurant operator’s stock valued at $57,568,000 after buying an additional 1,915,465 shares in the last quarter. Norges Bank purchased a new stake in shares of Wendy’s during the 2nd quarter worth about $18,929,000. Finally, Northern Trust Corp increased its stake in shares of Wendy’s by 89.6% in the 1st quarter. Northern Trust Corp now owns 2,987,332 shares of the restaurant operator’s stock valued at $43,705,000 after purchasing an additional 1,411,912 shares in the last quarter. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

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.