Bank of Nova Scotia Sells 218,547 Shares of The Wendy's Company (NASDAQ:WEN)

Key Points

• Bank of Nova Scotia sold 218,547 shares of The Wendy's Company, resulting in a 91.8% reduction in its stake during the first quarter, leaving it with just 19,432 shares valued at $284,000.
• Despite the significant sell-off by Bank of Nova Scotia, several other investors, including R Squared Ltd and Federated Hermes Inc., increased their holdings in Wendy's, indicating a mixed sentiment among institutional investors.
• Wendy's recently reported earnings of $0.29 EPS, exceeding estimates and announced a quarterly dividend of $0.14 per share, representing a yield of 5.6% for shareholders.

Bank of Nova Scotia trimmed its position in shares of The Wendy's Company (NASDAQ:WEN - Free Report) by 91.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 19,432 shares of the restaurant operator's stock after selling 218,547 shares during the period. Bank of Nova Scotia's holdings in Wendy's were worth $284,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in WEN. Dimensional Fund Advisors LP boosted its position in Wendy's by 1.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 4,033,560 shares of the restaurant operator's stock worth $65,747,000 after purchasing an additional 43,805 shares during the period. Janus Henderson Group PLC boosted its position in Wendy's by 3.0% during the fourth quarter. Janus Henderson Group PLC now owns 3,133,832 shares of the restaurant operator's stock worth $51,081,000 after purchasing an additional 90,380 shares during the period. Bank of New York Mellon Corp boosted its position in Wendy's by 5.9% during the first quarter. Bank of New York Mellon Corp now owns 2,577,359 shares of the restaurant operator's stock worth $37,707,000 after purchasing an additional 142,500 shares during the period. Invesco Ltd. boosted its position in Wendy's by 296.1% during the fourth quarter. Invesco Ltd. now owns 1,882,829 shares of the restaurant operator's stock worth $30,690,000 after purchasing an additional 1,407,503 shares during the period. Finally, Northern Trust Corp boosted its position in Wendy's by 24.3% during the fourth quarter. Northern Trust Corp now owns 1,575,420 shares of the restaurant operator's stock worth $25,679,000 after purchasing an additional 308,142 shares during the period. 85.96% of the stock is currently owned by institutional investors and hedge funds.

Wendy's Stock Down 1.8%

NASDAQ:WEN traded down $0.19 during trading hours on Tuesday, hitting $10.11. 8,148,278 shares of the company traded hands, compared to its average volume of 5,990,962. The company has a quick ratio of 1.43, a current ratio of 1.45 and a debt-to-equity ratio of 28.74. The firm's 50-day simple moving average is $11.05 and its 200-day simple moving average is $12.79. The Wendy's Company has a one year low of $9.74 and a one year high of $20.60. The company has a market cap of $1.94 billion, a PE ratio of 10.53, a PEG ratio of 2.05 and a beta of 0.31.

Wendy's (NASDAQ:WEN - Get Free Report) last issued its quarterly earnings data on Friday, August 8th. The restaurant operator reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.25 by $0.04. Wendy's had a return on equity of 103.07% and a net margin of 8.63%. The business had revenue of $560.93 million for the quarter, compared to analysts' expectations of $558.95 million. During the same period last year, the business earned $0.27 EPS. The business's revenue was down 1.7% on a year-over-year basis. Equities analysts predict that The Wendy's Company will post 0.99 earnings per share for the current year.

Wendy's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 5.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. Wendy's's payout ratio is 58.33%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on WEN. UBS Group reissued a "neutral" rating and issued a $11.00 target price (down previously from $14.00) on shares of Wendy's in a research report on Wednesday, July 30th. Bank of America reduced their target price on shares of Wendy's from $13.00 to $11.00 and set a "buy" rating for the company in a research report on Friday, July 18th. TD Securities reduced their target price on shares of Wendy's from $14.00 to $13.00 and set a "hold" rating for the company in a research report on Friday, May 2nd. Cowen reissued a "hold" rating on shares of Wendy's in a research report on Friday. Finally, Citigroup raised shares of Wendy's from a "hold" rating to a "strong-buy" rating in a research report on Friday. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating, six have assigned a buy rating and three have assigned a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $13.87.

Insider Buying and Selling at Wendy's

In related news, CMO Lindsay J. Radkoski purchased 5,050 shares of the business's stock in a transaction that occurred on Tuesday, June 3rd. The shares were bought at an average cost of $11.68 per share, with a total value of $58,984.00. Following the acquisition, the chief marketing officer owned 28,956 shares of the company's stock, valued at $338,206.08. This represents a 21.12% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 17.00% of the company's stock.

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.