The Wendy's Company $WEN Shares Sold by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC cut its Wendy’s stake by 98.2% in the third quarter, selling 770,450 shares and retaining 13,938 shares valued at approximately $87,000. Institutional investors still own 85.96% of WEN’s outstanding stock.
• Wendy’s shares opened at $6.23, near their 52-week low of $5.94 and below the $7.53 50-day moving average. Analysts have a consensus “Reduce” rating and an average price target of $7.82.
• The company exceeded quarterly earnings and revenue expectations, reporting $0.18 in earnings per share and $570.57 million in revenue, but cut its quarterly dividend in half to $0.07, producing a 4.5% annualized yield.

Sound Income Strategies LLC trimmed its holdings in The Wendy's Company (NASDAQ:WEN - Free Report) by 98.2% during the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 13,938 shares of the restaurant operator's stock after selling 770,450 shares during the quarter. Sound Income Strategies LLC's holdings in Wendy's were worth $87,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in WEN. Global Retirement Partners LLC purchased a new position in shares of Wendy's during the second quarter valued at $27,000. Cassaday & Co Wealth Management LLC purchased a new stake in Wendy's in the first quarter worth about $30,000. Nykredit A S purchased a new stake in Wendy's in the second quarter worth about $37,000. SJS Investment Consulting Inc. purchased a new stake in Wendy's in the first quarter worth about $32,000. Finally, Hilton Head Capital Partners LLC grew its holdings in Wendy's by 57.7% during the 1st quarter. Hilton Head Capital Partners LLC now owns 5,687 shares of the restaurant operator's stock worth $40,000 after acquiring an additional 2,080 shares in the last quarter. Institutional investors own 85.96% of the company's stock.

Wendy's Stock Performance

NASDAQ:WEN opened at $6.23 on Monday. The Wendy's Company has a 52 week low of $5.94 and a 52 week high of $10.12. The firm has a 50 day moving average of $7.53 and a 200 day moving average of $7.37. The company has a quick ratio of 1.88, a current ratio of 1.90 and a debt-to-equity ratio of 27.95. The stock has a market capitalization of $1.19 billion, a price-to-earnings ratio of 9.44, a PEG ratio of 0.64 and a beta of 0.40.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.02. Wendy's had a net margin of 5.72% and a return on equity of 115.31%. The company had revenue of $570.57 million during the quarter, compared to the consensus estimate of $557.13 million. During the same period last year, the firm earned $0.29 earnings per share. Wendy's's revenue was up 1.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that The Wendy's Company will post 0.49 earnings per share for the current fiscal year.

Wendy's Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were given a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend was Tuesday, September 1st. This is a decrease from Wendy's's previous quarterly dividend of $0.14. Wendy's's payout ratio is 42.42%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on WEN. Weiss Ratings reissued a "sell (d+)" rating on shares of Wendy's in a research note on Friday, July 17th. Seaport Research Partners started coverage on Wendy's in a research report on Wednesday, September 16th. They set a "neutral" rating on the stock. Stephens reaffirmed an "equal weight" rating and set a $8.00 target price on shares of Wendy's in a research report on Tuesday, June 23rd. BMO Capital Markets reiterated a "market perform" rating on shares of Wendy's in a report on Monday, August 10th. Finally, KeyCorp reissued a "sector weight" rating on shares of Wendy's in a research report on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $7.82.

About Wendy's

Wendy's Co NASDAQ: WEN operates and franchises the Wendy's quick-service restaurant chain. Its menu primarily features hamburgers made with fresh, never-frozen beef, along with chicken sandwiches, nuggets, salads, french fries, breakfast items, beverages and the signature Frosty dessert.

Founded by Dave Thomas in Columbus, Ohio, in 1969, Wendy's has grown into an international restaurant brand. The company serves customers through a network of company-operated and franchised restaurants, with a significant presence in the United States and additional locations in international markets.

In addition to restaurant sales, Wendy's supports ordering through digital channels, including its mobile application and website, as well as delivery services.

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