Wendy's' (WEN) "Neutral" Rating Reaffirmed at UBS Group

Key Points

• UBS Group has lowered its price target for Wendy's stock from $14.00 to $11.00, maintaining a "neutral" rating, which suggests an 8.86% potential upside from the current stock price.
• Wendy's shares are currently trading at $10.11, having experienced a 0.7% decrease during midday trading on Wednesday.
• Wendy's reported quarterly earnings that met expectations, with $0.20 EPS on revenues of $523.47 million, which was slightly below analysts' forecasts.

Wendy's (NASDAQ:WEN - Get Free Report)'s stock had its "neutral" rating restated by equities research analysts at UBS Group in a research report issued on Wednesday, MarketBeat Ratings reports. They presently have a $11.00 target price on the restaurant operator's stock, down from their prior target price of $14.00. UBS Group's price target would indicate a potential upside of 10.17% from the stock's previous close.

Other analysts have also issued reports about the company. Stifel Nicolaus lowered their price target on Wendy's from $16.00 to $14.00 and set a "hold" rating on the stock in a research note on Tuesday, April 15th. Truist Financial lowered their price target on Wendy's from $16.00 to $14.00 and set a "buy" rating on the stock in a research note on Wednesday, July 9th. Bank of America reduced their price objective on Wendy's from $13.00 to $11.00 and set a "buy" rating on the stock in a research report on Friday, July 18th. Loop Capital reduced their price objective on Wendy's from $21.00 to $16.00 and set a "buy" rating on the stock in a research report on Wednesday, July 16th. Finally, Stephens reiterated an "equal weight" rating and set a $13.00 price objective on shares of Wendy's in a research report on Tuesday, July 22nd. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, six have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $15.18.

Wendy's Stock Up 1.4%

Shares of NASDAQ WEN traded up $0.14 during mid-day trading on Wednesday, reaching $9.99. 4,278,507 shares of the company were exchanged, compared to its average volume of 5,831,177. 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 stock has a market cap of $1.92 billion, a price-to-earnings ratio of 10.59, a P/E/G ratio of 2.05 and a beta of 0.34. Wendy's has a 1 year low of $9.76 and a 1 year high of $20.60. The firm has a 50-day moving average of $11.24 and a 200 day moving average of $13.04.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its quarterly earnings data on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share for the quarter, meeting analysts' consensus estimates 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 85.36% and a net margin of 8.57%. The company's revenue was down 2.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.23 earnings per share. On average, research analysts expect that Wendy's will post 0.99 earnings per share for the current year.

Insider Buying and Selling

In other Wendy's news, insider Abigail E. Pringle sold 136,819 shares of the stock in a transaction on Monday, May 5th. The stock was sold at an average price of $12.81, for a total transaction of $1,752,651.39. Following the transaction, the insider owned 203,005 shares of the company's stock, valued at $2,600,494.05. This represents a 40.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CMO Lindsay J. Radkoski purchased 5,050 shares of Wendy's stock in a transaction on Tuesday, June 3rd. The shares were acquired at an average cost of $11.68 per share, for a total transaction of $58,984.00. Following the purchase, the chief marketing officer 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 disclosure for this purchase can be found here. 17.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Colonial Trust Co SC purchased a new position in shares of Wendy's in the 4th quarter worth $31,000. Farther Finance Advisors LLC increased its holdings in Wendy's by 1,111.9% in the 1st quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator's stock valued at $31,000 after purchasing an additional 1,957 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in Wendy's by 7,180.9% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator's stock valued at $50,000 after purchasing an additional 3,375 shares in the last quarter. New Age Alpha Advisors LLC acquired a new stake in Wendy's in the 4th quarter valued at $67,000. Finally, Signaturefd LLC increased its holdings in Wendy's by 27.4% in the 1st quarter. Signaturefd LLC now owns 4,262 shares of the restaurant operator's stock valued at $62,000 after purchasing an additional 917 shares in the last quarter. Hedge funds and other institutional investors 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.