Wendy's (NASDAQ:WEN) Price Target Cut to $13.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. has lowered its price target for Wendy's from $15.00 to $13.00 while maintaining an "overweight" rating, indicating a potential upside of 28.84% from the stock's previous close.
• Other analysts have also reduced their price targets for Wendy's, with TD Cowen and UBS Group setting expectations as low as $11.00, reflecting a generally cautious sentiment towards the company's stock.
• Wendy's reported earnings of $0.29 per share for the last quarter, exceeding estimates, but experienced a year-over-year revenue decline of 1.7%, signaling potential challenges ahead.

Wendy's (NASDAQ:WEN - Get Free Report) had its price objective decreased by JPMorgan Chase & Co. from $15.00 to $13.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has an "overweight" rating on the restaurant operator's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 24.88% from the stock's previous close.

A number of other equities analysts have also issued reports on the stock. BTIG Research reissued a "neutral" rating on shares of Wendy's in a research report on Friday, August 8th. 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 report on Friday, July 18th. Guggenheim downgraded shares of Wendy's from a "buy" rating to a "neutral" rating in a research report on Wednesday, May 14th. TD Securities cut their price target on Wendy's from $14.00 to $13.00 and set a "hold" rating on the stock in a research report on Friday, May 2nd. Finally, UBS Group reissued a "neutral" rating and issued a $11.00 price objective (down previously from $14.00) on shares of Wendy's in a report on Wednesday, July 30th. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, six have given a buy rating and three have issued a strong buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $13.87.

Wendy's Stock Performance

Shares of NASDAQ WEN traded up $0.30 during mid-day trading on Monday, hitting $10.41. The stock had a trading volume of 7,167,735 shares, compared to its average volume of 7,887,006. The firm has a market cap of $1.98 billion, a PE ratio of 10.84, a PEG ratio of 1.90 and a beta of 0.31. The company has a debt-to-equity ratio of 28.74, a quick ratio of 1.43 and a current ratio of 1.45. The company has a 50 day moving average of $10.99 and a two-hundred day moving average of $12.76. Wendy's has a twelve month low of $9.74 and a twelve month high of $20.60.

Wendy's (NASDAQ:WEN - Get Free Report) last posted its quarterly earnings results 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 the consensus estimate of $558.95 million. During the same quarter in the previous year, the business earned $0.27 EPS. The company's quarterly revenue was down 1.7% compared to the same quarter last year. Research analysts predict that Wendy's will post 0.99 EPS for the current fiscal year.

Insider Activity at Wendy's

In related news, CMO Lindsay J. Radkoski purchased 5,050 shares of Wendy's stock in a transaction that occurred on Tuesday, June 3rd. The stock was purchased at an average price of $11.68 per share, for a total transaction of $58,984.00. Following the transaction, the chief marketing officer directly owned 28,956 shares in the company, valued at approximately $338,206.08. This trade represents a 21.12% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. 17.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Wendy's

A number of hedge funds have recently made changes to their positions in WEN. Elevation Point Wealth Partners LLC purchased a new stake in shares of Wendy's during the second quarter worth approximately $25,000. Colonial Trust Co SC acquired a new stake in Wendy's during the 4th quarter worth $31,000. Farther Finance Advisors LLC grew its holdings 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 worth $31,000 after buying an additional 1,957 shares in the last quarter. Steward Partners Investment Advisory LLC raised its position in shares of Wendy's by 35.0% in the second quarter. Steward Partners Investment Advisory LLC now owns 4,017 shares of the restaurant operator's stock valued at $46,000 after buying an additional 1,041 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in shares of Wendy's by 7,180.9% in the first quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator's stock worth $50,000 after buying an additional 3,375 shares in the last quarter. Institutional investors and hedge funds own 85.96% of the company's stock.

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.