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

The Wendy's Company (NASDAQ:WEN - Get Free Report) saw some unusual options trading on Monday. Stock investors purchased 10,371 put options on the stock. This is an increase of 44% compared to the typical daily volume of 7,213 put options.

Wendy's Stock Down 2.2%

Shares of NASDAQ WEN traded down $0.25 during trading on Monday, hitting $10.94. 3,019,337 shares of the company traded hands, compared to its average volume of 5,252,421. The firm has a market capitalization of $2.10 billion, a price-to-earnings ratio of 11.50, a P/E/G ratio of 2.00 and a beta of 0.34. The business's fifty day moving average is $12.13 and its 200 day moving average is $14.30. The company has a debt-to-equity ratio of 12.48, a quick ratio of 1.83 and a current ratio of 1.85. Wendy's has a fifty-two week low of $10.94 and a fifty-two week high of $20.60.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its quarterly earnings results on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.20. The business had revenue of $523.47 million for the quarter, compared to analyst estimates of $530.11 million. Wendy's had a return on equity of 75.56% and a net margin of 8.65%. The company's quarterly revenue was down 2.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.23 earnings per share. Equities research analysts predict that Wendy's will post 0.99 earnings per share for the current fiscal year.

Wendy's Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 16th. Stockholders of record on Monday, June 2nd will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 5.12%. The ex-dividend date is Monday, June 2nd. Wendy's's dividend payout ratio is currently 59.57%.

Insider Activity

In related news, CMO Lindsay J. Radkoski acquired 5,050 shares of the stock in a transaction 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 now owns 28,956 shares of the company's stock, valued at $338,206.08. The trade was a 21.12% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Abigail E. Pringle sold 136,819 shares of the firm's stock in a transaction that occurred on Monday, May 5th. The shares were sold at an average price of $12.81, for a total transaction of $1,752,651.39. Following the completion of the sale, the insider now directly owns 203,005 shares of the company's stock, valued at approximately $2,600,494.05. This represents a 40.26% decrease in their position. The disclosure for this sale can be found here. 17.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Wendy's

Several hedge funds and other institutional investors have recently made changes to their positions in WEN. Rhumbline Advisers boosted its stake in Wendy's by 20.1% during the 1st quarter. Rhumbline Advisers now owns 700,472 shares of the restaurant operator's stock valued at $10,248,000 after purchasing an additional 117,324 shares during the last quarter. Mattson Financial Services LLC lifted its holdings in shares of Wendy's by 18.4% in the first quarter. Mattson Financial Services LLC now owns 59,937 shares of the restaurant operator's stock valued at $877,000 after purchasing an additional 9,314 shares in the last quarter. Intech Investment Management LLC boosted its position in shares of Wendy's by 398.2% during the first quarter. Intech Investment Management LLC now owns 192,177 shares of the restaurant operator's stock valued at $2,812,000 after buying an additional 153,604 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Wendy's by 1.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 639,085 shares of the restaurant operator's stock worth $9,350,000 after buying an additional 11,072 shares in the last quarter. Finally, United Services Automobile Association purchased a new stake in Wendy's in the 1st quarter valued at $161,000. 85.96% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on WEN shares. Truist Financial reduced their price objective on shares of Wendy's from $17.00 to $16.00 and set a "buy" rating on the stock in a research note on Monday, May 5th. Stephens reissued an "equal weight" rating and issued a $14.00 price target on shares of Wendy's in a report on Friday, May 2nd. Sanford C. Bernstein set a $13.00 price objective on Wendy's in a research note on Monday, May 5th. Stifel Nicolaus decreased their target price on Wendy's from $16.00 to $14.00 and set a "hold" rating for the company in a research note on Tuesday, April 15th. Finally, JPMorgan Chase & Co. raised Wendy's from a "neutral" rating to an "overweight" rating and dropped their price target for the stock from $17.00 to $15.00 in a research report on Monday, May 5th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating, five have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $16.34.

About Wendy's

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.

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