Traders Purchase Large Volume of Put Options on The Wendy's (NASDAQ:WEN)

Tuesday, June 8, 2021 | MarketBeat

The Wendy's Company (NASDAQ:WEN) was the recipient of some unusual options trading on Tuesday. Stock investors acquired 24,573 put options on the company. This represents an increase of approximately 5,523% compared to the average daily volume of 437 put options.

A number of brokerages have weighed in on WEN. Telsey Advisory Group restated an "outperform" rating on shares of The Wendy's in a research note on Thursday, March 4th. Stifel Nicolaus lowered The Wendy's from a "buy" rating to a "hold" rating in a research note on Tuesday. Morgan Stanley lifted their target price on The Wendy's from $23.00 to $24.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 13th. Royal Bank of Canada lifted their target price on The Wendy's from $22.00 to $24.00 and gave the stock a "sector perform" rating in a research report on Thursday, May 13th. Finally, Cleveland Research began coverage on The Wendy's in a research report on Friday, March 12th. They issued a "neutral" rating for the company. Nine investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company's stock. The stock has a consensus rating of "Buy" and an average price target of $25.61.

Shares of NASDAQ WEN opened at $28.87 on Wednesday. The company has a market cap of $6.39 billion, a P/E ratio of 45.83, a price-to-earnings-growth ratio of 2.27 and a beta of 0.95. The Wendy's has a 12-month low of $18.86 and a 12-month high of $29.46. The company has a current ratio of 1.62, a quick ratio of 1.61 and a debt-to-equity ratio of 5.20. The business has a 50 day moving average of $22.65.

The Wendy's (NASDAQ:WEN) last announced its earnings results on Wednesday, May 12th. The restaurant operator reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.06. The firm had revenue of $460.20 million for the quarter, compared to the consensus estimate of $443.02 million. The Wendy's had a return on equity of 29.74% and a net margin of 8.09%. The firm's revenue for the quarter was up 13.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.09 EPS. Equities research analysts forecast that The Wendy's will post 0.73 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 15th. Shareholders of record on Tuesday, June 1st will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Friday, May 28th. This represents a $0.40 annualized dividend and a yield of 1.39%. This is an increase from The Wendy's's previous quarterly dividend of $0.09. The Wendy's's payout ratio is presently 70.18%.

A number of institutional investors have recently made changes to their positions in the business. Stratos Wealth Partners LTD. raised its stake in The Wendy's by 2.1% during the 1st quarter. Stratos Wealth Partners LTD. now owns 23,830 shares of the restaurant operator's stock valued at $483,000 after acquiring an additional 500 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in shares of The Wendy's by 1.4% in the 1st quarter. Thrivent Financial for Lutherans now owns 47,606 shares of the restaurant operator's stock worth $964,000 after buying an additional 672 shares in the last quarter. CI Investments Inc. raised its stake in shares of The Wendy's by 22.3% in the 4th quarter. CI Investments Inc. now owns 4,628 shares of the restaurant operator's stock worth $101,000 after buying an additional 844 shares in the last quarter. TruWealth Advisors LLC raised its stake in shares of The Wendy's by 8.6% in the 1st quarter. TruWealth Advisors LLC now owns 10,755 shares of the restaurant operator's stock worth $218,000 after buying an additional 850 shares in the last quarter. Finally, Vectors Research Management LLC raised its stake in shares of The Wendy's by 154.5% in the 4th quarter. Vectors Research Management LLC now owns 1,652 shares of the restaurant operator's stock worth $36,000 after buying an additional 1,003 shares in the last quarter. 72.33% of the stock is currently owned by hedge funds and other institutional investors.

The Wendy's Company Profile

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy's U.S., Wendy's International, and Global Real Estate & Development. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.

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