The Wendy's Company (NASDAQ:WEN) Shares Sold by Neo Ivy Capital Management

Key Points

• Neo Ivy Capital Management reduced its holdings in Wendy's by 41.6%, now owning approximately $1.95 million in shares after selling 94,956 shares in the first quarter.
• Wendy's reported flat earnings of $0.20 per share for the last quarter, falling short of revenue expectations with figures of $523.47 million compared to an anticipated $530.11 million.
• The company's most recent quarterly dividend was set at $0.14, translating to an annualized yield of 5.25%, with a payout ratio of 59.57%.

Neo Ivy Capital Management cut its stake in The Wendy's Company (NASDAQ:WEN - Free Report) by 41.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 133,476 shares of the restaurant operator's stock after selling 94,956 shares during the period. Neo Ivy Capital Management owned about 0.07% of Wendy's worth $1,953,000 at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in the stock. Colonial Trust Co SC bought a new stake in shares of Wendy's during the fourth quarter valued at approximately $31,000. Farther Finance Advisors LLC raised its stake in shares of 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 in the last quarter. New Age Alpha Advisors LLC bought a new stake in shares of Wendy's during the fourth quarter valued at approximately $67,000. Signaturefd LLC raised its stake in shares of Wendy's by 27.4% during the first quarter. Signaturefd LLC now owns 4,262 shares of the restaurant operator's stock valued at $62,000 after acquiring an additional 917 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of Wendy's by 91.0% during the first quarter. GAMMA Investing LLC now owns 4,266 shares of the restaurant operator's stock valued at $62,000 after acquiring an additional 2,033 shares in the last quarter. 85.96% of the stock is currently owned by institutional investors.

Wendy's Stock Performance

Shares of WEN traded down $0.16 during trading hours on Tuesday, hitting $10.21. The stock had a trading volume of 2,842,330 shares, compared to its average volume of 5,814,775. The company has a debt-to-equity ratio of 24.88, a quick ratio of 1.47 and a current ratio of 1.49. The firm has a 50-day moving average price of $11.34 and a 200 day moving average price of $13.11. The Wendy's Company has a fifty-two week low of $10.18 and a fifty-two week high of $20.60. The firm has a market capitalization of $1.96 billion, a price-to-earnings ratio of 10.85, a PEG ratio of 2.18 and a beta of 0.34.

Wendy's (NASDAQ:WEN - Get Free Report) last posted its earnings results on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.20. The firm had revenue of $523.47 million during the quarter, compared to analysts' expectations of $530.11 million. Wendy's had a net margin of 8.57% and a return on equity of 85.36%. The business's revenue was down 2.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.23 EPS. As a group, research analysts anticipate that The Wendy's Company will post 0.99 EPS for the current year.

Wendy's Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 2nd were issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 5.49%. The ex-dividend date of this dividend was Monday, June 2nd. Wendy's's payout ratio is 59.57%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Barclays dropped their target price on shares of Wendy's from $14.00 to $13.00 and set an "equal weight" rating on the stock in a report on Monday, May 5th. Guggenheim cut shares of Wendy's from a "buy" rating to a "neutral" rating in a report on Wednesday, May 14th. Loop Capital dropped their target price on shares of Wendy's from $21.00 to $16.00 and set a "buy" rating on the stock in a report on Wednesday, July 16th. Wall Street Zen upgraded shares of Wendy's from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Finally, Morgan Stanley dropped their target price on shares of Wendy's from $13.00 to $11.00 and set an "underweight" rating on the stock in a report on Monday, July 14th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating, six have given a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $15.33.

Insiders Place Their Bets

In related news, insider Abigail E. Pringle sold 136,819 shares of the company's stock in a transaction dated Monday, May 5th. The shares were sold at an average price of $12.81, for a total value of $1,752,651.39. Following the completion of the sale, the insider owned 203,005 shares of the company's stock, valued at approximately $2,600,494.05. This represents a 40.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CMO Lindsay J. Radkoski acquired 5,050 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The stock was purchased at an average cost of $11.68 per share, with a total value of $58,984.00. Following the acquisition, the chief marketing officer directly owned 28,956 shares of the company's stock, valued at $338,206.08. This trade represents a 21.12% increase in their position. The disclosure for this purchase can be found here. 17.00% of the stock is owned by corporate insiders.

Wendy's Company Profile

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.