Wendy’s (NASDAQ:WEN) Shares Down 4.3% – What’s Next?

The Wendy’s Company (NASDAQ:WEN) dropped 4.3% on Thursday . The company traded as low as $7.86 and last traded at $7.8860. Approximately 1,639,519 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 12,047,795 shares. The stock had previously closed at $8.24.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on WEN. Morgan Stanley set a $5.50 target price on Wendy’s in a report on Monday, August 10th. TD Cowen reissued a “hold” rating and issued a $6.00 price objective on shares of Wendy’s in a research note on Tuesday, May 12th. Citigroup lifted their price objective on shares of Wendy’s from $8.00 to $8.25 and gave the company a “neutral” rating in a report on Tuesday. JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a $6.00 target price (down from $7.00) on shares of Wendy’s in a research note on Monday, May 11th. Finally, UBS Group reiterated a “neutral” rating and set a $8.00 target price on shares of Wendy’s in a report on Monday, August 10th. Two equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $7.78.

Wendy’s Trading Up 1.9%

The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 27.95. The company has a market cap of $1.53 billion, a PE ratio of 12.17, a P/E/G ratio of 0.80 and a beta of 0.39. The company has a fifty day simple moving average of $8.00 and a two-hundred day simple moving average of $7.48.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.02. Wendy’s had a return on equity of 115.31% and a net margin of 5.72%.The business had revenue of $570.57 million during the quarter, compared to analysts’ expectations of $557.13 million. During the same quarter last year, the business posted $0.29 EPS. The business’s quarterly revenue was up 1.8% compared to the same quarter last year. Analysts anticipate that The Wendy’s Company will post 0.5 EPS for the current year.

Wendy’s Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a $0.07 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.28 dividend on an annualized basis and a yield of 3.5%. Wendy’s’s payout ratio is currently 42.42%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Global Retirement Partners LLC purchased a new stake in shares of Wendy’s during the 2nd quarter worth $27,000. Hilton Head Capital Partners LLC purchased a new position in Wendy’s in the fourth quarter valued at $30,000. Cassaday & Co Wealth Management LLC purchased a new position in Wendy’s in the first quarter valued at $30,000. Fifth Third Bancorp raised its stake in Wendy’s by 161.0% in the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator’s stock valued at $32,000 after buying an additional 2,362 shares in the last quarter. Finally, SJS Investment Consulting Inc. acquired a new stake in Wendy’s in the first quarter valued at $32,000. Institutional investors and hedge funds own 85.96% of the company’s stock.

Wendy’s Company Profile

The Wendy’s Company (NASDAQ:WEN) operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company’s menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy’s has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.

Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy’s expanded rapidly through both company-owned and franchised outlets.