Stock Traders Buy High Volume of Put Options on Wendy's (NASDAQ:WEN)

The Wendy's Company (NASDAQ:WEN - Get Free Report) was the recipient of unusually large options trading on Monday. Stock traders bought 10,371 put options on the stock. This is an increase of 44% compared to the average volume of 7,213 put options.

Wendy's Stock Up 0.8%

Shares of WEN stock traded up $0.09 during midday trading on Thursday, reaching $11.33. 5,944,162 shares of the stock were exchanged, compared to its average volume of 4,416,262. The company has a current ratio of 1.49, a quick ratio of 1.47 and a debt-to-equity ratio of 24.88. Wendy's has a 1 year low of $10.91 and a 1 year high of $20.60. The firm has a market cap of $2.18 billion, a PE ratio of 11.68, a price-to-earnings-growth ratio of 1.74 and a beta of 0.34. The company's 50 day moving average is $12.03 and its two-hundred day moving average is $14.21.

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

Wendy's Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 16th. Investors of record on Monday, June 2nd were paid a dividend of $0.14 per share. The ex-dividend date was Monday, June 2nd. This represents a $0.56 dividend on an annualized basis and a dividend yield of 4.94%. Wendy's's dividend payout ratio is presently 59.57%.

Insider Buying and Selling

In other Wendy's news, insider Abigail E. Pringle sold 136,819 shares of the firm'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 transaction, the insider now directly owns 203,005 shares in the company, valued at $2,600,494.05. This trade represents a 40.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CMO Lindsay J. Radkoski bought 5,050 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The stock was acquired at an average cost of $11.68 per share, with a total value of $58,984.00. Following the transaction, the chief marketing officer now owns 28,956 shares of the company's stock, valued at $338,206.08. This trade represents a 21.12% increase in their ownership of the stock. The disclosure for this purchase can be found here. 17.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Wendy's

Institutional investors and hedge funds have recently made changes to their positions in the business. Venturi Wealth Management LLC lifted its position in shares of Wendy's by 27.4% during the fourth quarter. Venturi Wealth Management LLC now owns 7,749 shares of the restaurant operator's stock valued at $126,000 after buying an additional 1,666 shares during the last quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors purchased a new position in shares of Wendy's during the 4th quarter valued at approximately $1,733,000. Ieq Capital LLC increased its holdings in Wendy's by 220.5% in the fourth quarter. Ieq Capital LLC now owns 268,531 shares of the restaurant operator's stock valued at $4,377,000 after buying an additional 184,749 shares in the last quarter. IFP Advisors Inc raised its holdings in Wendy's by 54.9% in the 4th quarter. IFP Advisors Inc now owns 6,597 shares of the restaurant operator's stock worth $108,000 after purchasing an additional 2,338 shares during the period. Finally, Prasad Wealth Partners LLC purchased a new stake in shares of Wendy's during the fourth quarter worth about $645,000. 85.96% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $17.00 price target on shares of Wendy's in a research report on Tuesday, March 4th. Loop Capital decreased their target price on Wendy's from $26.00 to $21.00 and set a "buy" rating on the stock in a research report on Monday, May 5th. Morgan Stanley dropped their price target on shares of Wendy's from $14.00 to $13.00 and set an "underweight" rating for the company in a research report on Monday, May 5th. UBS Group dropped their price objective on Wendy's from $16.00 to $14.00 and set a "neutral" rating for the company in a research note on Monday, April 28th. Finally, Truist Financial decreased their price target on Wendy's from $17.00 to $16.00 and set a "buy" rating on the stock in a research report on Monday, May 5th. Two investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating, five have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $16.34.

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.