The Wendy's Company (NASDAQ:WEN) Sees Significant Growth in Short Interest

Key Points

• The Wendy's Company experienced a **significant increase** in short interest, rising **105.9%** from June to July, with a total of **20,180,000 shares** now sold short.
• Wall Street analysts have generally reduced their price targets for Wendy's shares, with Barclays setting a target of **$13.00**, while Citigroup has a target of **$11.50**, reflecting a cautious outlook.
• Insider activity shows that CMO **Lindsay J. Radkoski** purchased **5,050 shares** at an average cost of **$11.68**, indicating confidence in the company's future performance.

The Wendy's Company (NASDAQ:WEN - Get Free Report) was the recipient of a large increase in short interest in the month of July. As of July 15th, there was short interest totaling 20,180,000 shares, anincreaseof105.9% from the June 30th total of 9,800,000 shares. Based on an average trading volume of 6,320,000 shares, the days-to-cover ratio is currently 3.2 days. Approximately11.6% of the company's shares are sold short. Approximately11.6% of the company's shares are sold short. Based on an average trading volume of 6,320,000 shares, the days-to-cover ratio is currently 3.2 days.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Barclays reduced their price target on shares of Wendy's from $14.00 to $13.00 and set an "equal weight" rating for the company in a report on Monday, May 5th. Stifel Nicolaus reduced their price target on shares of Wendy's from $16.00 to $14.00 and set a "hold" rating for the company in a report on Tuesday, April 15th. Citigroup restated a "neutral" rating and issued a $11.50 price target (down from $13.75) on shares of Wendy's in a report on Monday, July 28th. Sanford C. Bernstein set a $13.00 price target on shares of Wendy's in a report on Monday, May 5th. Finally, Morgan Stanley reduced their price target on shares of Wendy's from $13.00 to $11.00 and set an "underweight" rating for the company in a report on Monday, July 14th. 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 company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $14.81.

Insider Transactions at Wendy's

In other Wendy's news, CMO Lindsay J. Radkoski purchased 5,050 shares of the firm's stock in a transaction on Tuesday, June 3rd. The stock was purchased at an average cost of $11.68 per share, for a total transaction of $58,984.00. Following the transaction, the chief marketing officer owned 28,956 shares in the company, valued at $338,206.08. The trade was a 21.12% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 17.00% of the company's stock.

Hedge Funds Weigh In On Wendy's

Several hedge funds have recently bought and sold shares of the company. AdvisorShares Investments LLC purchased a new position in Wendy's during the second quarter valued at approximately $458,000. Retirement Systems of Alabama lifted its position in Wendy's by 34.1% during the second quarter. Retirement Systems of Alabama now owns 954,998 shares of the restaurant operator's stock valued at $10,906,000 after purchasing an additional 242,725 shares during the last quarter. Hantz Financial Services Inc. lifted its position in Wendy's by 5.6% during the second quarter. Hantz Financial Services Inc. now owns 19,697 shares of the restaurant operator's stock valued at $225,000 after purchasing an additional 1,036 shares during the last quarter. SYM FINANCIAL Corp bought a new stake in Wendy's during the second quarter valued at approximately $170,000. Finally, Transcend Capital Advisors LLC bought a new stake in Wendy's during the second quarter valued at approximately $151,000. Hedge funds and other institutional investors own 85.96% of the company's stock.

Wendy's Price Performance

WEN opened at $9.82 on Tuesday. The company has a market capitalization of $1.89 billion, a price-to-earnings ratio of 10.45, a PEG ratio of 2.02 and a beta of 0.31. The company has a quick ratio of 1.47, a current ratio of 1.49 and a debt-to-equity ratio of 24.88. The firm has a 50-day moving average price of $11.18 and a 200-day moving average price of $12.94. Wendy's has a twelve month low of $9.76 and a twelve month high of $20.60.

Wendy's (NASDAQ:WEN - Get Free Report) last issued 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. The company had revenue of $523.47 million during the quarter, compared to analysts' expectations of $530.11 million. Wendy's had a net margin of 8.57% and a return on equity of 85.36%. Wendy's's revenue for the quarter was down 2.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.23 earnings per share. Equities analysts expect that Wendy's will post 0.99 EPS for the current year.

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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