Wendy’s (NASDAQ:WEN) Sets New 12-Month Low Following Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN) hit a new 52-week low during mid-day trading on Tuesday after UBS Group lowered their price target on the stock from $20.00 to $17.00. UBS Group currently has a neutral rating on the stock. Wendy’s traded as low as $15.32 and last traded at $15.36, with a volume of 603116 shares. The stock had previously closed at $15.81.

Other equities analysts have also recently issued research reports about the stock. Stephens reiterated an “equal weight” rating and issued a $19.00 price objective on shares of Wendy’s in a research note on Tuesday, November 19th. BMO Capital Markets lifted their price target on shares of Wendy’s from $19.00 to $20.00 and gave the stock a “market perform” rating in a research note on Friday, November 1st. Wedbush restated a “neutral” rating and issued a $20.00 price objective on shares of Wendy’s in a research note on Friday, November 1st. Citigroup lifted their target price on Wendy’s from $18.00 to $18.75 and gave the company a “neutral” rating in a research report on Tuesday, October 8th. Finally, JPMorgan Chase & Co. boosted their price target on Wendy’s from $20.00 to $22.00 and gave the company a “neutral” rating in a report on Monday, September 16th. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $20.14.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Retirement Systems of Alabama grew its stake in shares of Wendy’s by 16.9% in the 3rd quarter. Retirement Systems of Alabama now owns 711,267 shares of the restaurant operator’s stock worth $12,461,000 after buying an additional 102,769 shares in the last quarter. Maverick Capital Ltd. grew its position in Wendy’s by 98.2% in the second quarter. Maverick Capital Ltd. now owns 176,144 shares of the restaurant operator’s stock worth $2,987,000 after acquiring an additional 87,254 shares in the last quarter. Quantinno Capital Management LP increased its stake in Wendy’s by 90.8% during the third quarter. Quantinno Capital Management LP now owns 109,747 shares of the restaurant operator’s stock worth $1,923,000 after acquiring an additional 52,225 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in Wendy’s during the third quarter worth approximately $1,659,000. Finally, Franklin Resources Inc. purchased a new stake in Wendy’s during the third quarter valued at approximately $763,000. Institutional investors own 85.96% of the company’s stock.

Wendy’s Price Performance

The firm has a market capitalization of $3.14 billion, a P/E ratio of 16.20, a price-to-earnings-growth ratio of 2.42 and a beta of 0.78. The company has a current ratio of 2.10, a quick ratio of 2.08 and a debt-to-equity ratio of 12.64. The firm has a 50 day moving average price of $17.76 and a 200-day moving average price of $17.54.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings data on Thursday, October 31st. The restaurant operator reported $0.25 EPS for the quarter, hitting the consensus estimate of $0.25. The company had revenue of $566.70 million during the quarter, compared to analyst estimates of $560.50 million. Wendy’s had a net margin of 8.76% and a return on equity of 70.02%. Wendy’s’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.27 earnings per share. On average, analysts expect that The Wendy’s Company will post 0.99 earnings per share for the current year.

Wendy’s Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $1.00 annualized dividend and a dividend yield of 6.50%. Wendy’s’s dividend payout ratio (DPR) is 105.26%.

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.