Wendy's (NASDAQ:WEN) Hits New 1-Year Low - What's Next?

Key Points

• Wendy's share price hit a new 52-week low at $9.74 during trading, reflecting ongoing challenges for the company.
• Analysts have lowered their price targets for Wendy's, with many reviewing their ratings, resulting in a consensus target price of $14.81.
• Wendy's reported a net margin of 8.57% for the last quarter, but revenue decreased by 2.1% year-over-year, indicating potential ongoing financial pressures.

The Wendy's Company (NASDAQ:WEN - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $9.74 and last traded at $9.81, with a volume of 291080 shares traded. The stock had previously closed at $9.82.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on WEN. Loop Capital cut their target price on shares of Wendy's from $21.00 to $16.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. JPMorgan Chase & Co. raised shares of Wendy's from a "neutral" rating to an "overweight" rating and cut their target price for the company from $17.00 to $15.00 in a research note on Monday, May 5th. Wall Street Zen raised shares of Wendy's from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Barclays dropped their price target on shares of Wendy's from $14.00 to $13.00 and set an "equal weight" rating on the stock in a research note on Monday, May 5th. Finally, Sanford C. Bernstein set a $13.00 price target on shares of Wendy's in a research note on Monday, May 5th. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating, five have given a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $14.81.

Wendy's Stock Up 0.6%

The business's 50 day moving average price is $11.13 and its 200-day moving average price is $12.90. The company has a debt-to-equity ratio of 24.88, a current ratio of 1.49 and a quick ratio of 1.47. The company has a market cap of $1.94 billion, a P/E ratio of 10.76, a PEG ratio of 2.02 and a beta of 0.31.

Insider Activity

In other news, CMO Lindsay J. Radkoski bought 5,050 shares of the business's stock in a transaction dated Tuesday, June 3rd. The stock was bought at an average price of $11.68 per share, for a total transaction of $58,984.00. Following the completion of the purchase, the chief marketing officer owned 28,956 shares of the company's stock, valued at approximately $338,206.08. The trade was a 21.12% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 17.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of WEN. Connor Clark & Lunn Investment Management Ltd. increased its holdings in shares of Wendy's by 6,474.9% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,134,230 shares of the restaurant operator's stock valued at $12,953,000 after purchasing an additional 1,116,979 shares in the last quarter. AGF Management Ltd. increased its holdings in shares of Wendy's by 58.8% in the second quarter. AGF Management Ltd. now owns 271,314 shares of the restaurant operator's stock valued at $3,098,000 after purchasing an additional 100,442 shares in the last quarter. Savant Capital LLC increased its holdings in shares of Wendy's by 54.3% in the second quarter. Savant Capital LLC now owns 161,819 shares of the restaurant operator's stock valued at $1,848,000 after purchasing an additional 56,956 shares in the last quarter. AdvisorShares Investments LLC acquired a new stake in shares of Wendy's in the second quarter valued at approximately $458,000. Finally, Retirement Systems of Alabama increased its holdings in shares of Wendy's by 34.1% in 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 in the last quarter. Institutional investors own 85.96% of the company's stock.

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.