The Wendy's Company $WEN Shares Acquired by Bank of America Corp DE

Key Points

• Bank of America increased its Wendy’s stake by 5.6% in the first quarter, bringing its holdings to 4.49 million shares worth approximately $31.2 million. Institutional investors and hedge funds collectively own 85.96% of WEN.
• Analysts remain cautious, with Wendy’s receiving a consensus rating of “Reduce” and an average price target of $7.76, despite some target increases. The stock recently traded at $8.64, above its 50-day and 200-day moving averages.
• Wendy’s exceeded quarterly expectations with adjusted earnings of $0.18 per share and revenue of $570.6 million, but earnings declined year over year. The company declared a $0.07 quarterly dividend, representing a 3.2% yield, while reports of a potential Nelson Peltz-led go-private offer provided a positive catalyst for shares.

Bank of America Corp DE lifted its stake in The Wendy's Company (NASDAQ:WEN - Free Report) by 5.6% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,493,752 shares of the restaurant operator's stock after buying an additional 236,541 shares during the quarter. Bank of America Corp DE owned approximately 2.36% of Wendy's worth $31,232,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of WEN. AQR Capital Management LLC boosted its holdings in Wendy's by 30.1% during the second quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator's stock worth $158,092,000 after buying an additional 3,205,269 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Wendy's by 3.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,091,847 shares of the restaurant operator's stock valued at $59,075,000 after buying an additional 227,023 shares in the last quarter. Morgan Stanley increased its holdings in Wendy's by 5.8% in the fourth quarter. Morgan Stanley now owns 6,549,066 shares of the restaurant operator's stock valued at $54,554,000 after buying an additional 357,814 shares in the last quarter. State Street Corp raised its position in shares of Wendy's by 1.9% in the fourth quarter. State Street Corp now owns 5,446,335 shares of the restaurant operator's stock worth $45,368,000 after acquiring an additional 102,084 shares during the period. Finally, Wells Fargo & Company MN raised its position in shares of Wendy's by 258.6% in the fourth quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator's stock worth $35,191,000 after acquiring an additional 3,046,517 shares during the period. 85.96% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on WEN shares. Citigroup raised their target price on Wendy's from $7.25 to $8.00 and gave the company a "neutral" rating in a research report on Monday, August 10th. KeyCorp reaffirmed a "sector weight" rating on shares of Wendy's in a report on Tuesday. Stephens reiterated an "equal weight" rating and set a $8.00 price target on shares of Wendy's in a research report on Tuesday, June 23rd. Weiss Ratings reissued a "sell (d+)" rating on shares of Wendy's in a report on Friday, July 17th. Finally, TD Cowen restated a "hold" rating and issued a $6.00 price objective on shares of Wendy's in a research report on Tuesday, May 12th. Two analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $7.76.

Wendy's Price Performance

Shares of Wendy's stock opened at $8.64 on Friday. The business has a 50 day simple moving average of $7.51 and a two-hundred day simple moving average of $7.40. The Wendy's Company has a 12 month low of $6.07 and a 12 month high of $10.84. The stock has a market capitalization of $1.65 billion, a P/E ratio of 13.09, a PEG ratio of 0.69 and a beta of 0.37. The company has a debt-to-equity ratio of 27.95, a current ratio of 1.90 and a quick ratio of 1.88.

Wendy's (NASDAQ:WEN - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.16 by $0.02. Wendy's had a return on equity of 115.31% and a net margin of 5.72%.The firm had revenue of $570.57 million for the quarter, compared to analyst estimates of $557.13 million. During the same period in the previous year, the company posted $0.29 earnings per share. The business's revenue was up 1.8% on a year-over-year basis. As a group, analysts predict that The Wendy's Company will post 0.53 EPS for the current fiscal year.

Wendy's Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Tuesday, September 1st. Wendy's's payout ratio is currently 84.85%.

Key Stories Impacting Wendy's

Here are the key news stories impacting Wendy's this week:

• Positive Sentiment: Reports that Nelson Peltz and an investor group may launch a go-private offer for Wendy’s fueled strong buying interest. Investors may anticipate a takeover premium and see potential for Peltz to improve the struggling restaurant chain’s operations outside the public markets. Wendy's jumps on report investor Nelson Peltz preparing bid Wendy’s shares jump 15% as Nelson Peltz prepares bid to take struggling chain private
• Positive Sentiment: Commentary suggests the potential transaction reflects investor confidence that Wendy’s turnaround efforts could create more value under activist ownership. The takeover discussion follows a period of weak sentiment toward the chain, making the possibility of strategic changes a positive catalyst for WEN. Wendy’s Takeover: Peltz May See What Public Markets Cannot

Wendy's 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.

Want to see what other hedge funds are holding WEN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Wendy's Company (NASDAQ:WEN - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source