Wendy's (NASDAQ:WEN) Reaches New 12-Month Low - Should You Sell?

Key Points

• Wendy's shares hit a new 52-week low, trading as low as $9.29, while analysts forecast a consensus target price of $12.97.
• The company reported a Q2 EPS of $0.29, surpassing the expected $0.25, but experienced a year-over-year revenue decline of 1.7%.
• Wendy's recently announced a quarterly dividend of $0.14 per share, reflecting a 6.0% yield and a payout ratio of 58.33%.

Shares of The Wendy's Company (NASDAQ:WEN - Get Free Report) hit a new 52-week low on Monday . The stock traded as low as $9.29 and last traded at $9.32, with a volume of 176258 shares. The stock had previously closed at $9.33.

Analyst Upgrades and Downgrades

WEN has been the topic of several recent analyst reports. Truist Financial cut their price objective on shares of Wendy's from $14.00 to $13.00 and set a "buy" rating on the stock in a report on Monday, August 11th. BMO Capital Markets reiterated a "market perform" rating and set a $12.00 price objective (down from $15.00) on shares of Wendy's in a report on Friday, August 8th. TD Cowen cut their price objective on shares of Wendy's from $13.00 to $11.00 and set a "hold" rating on the stock in a report on Friday, August 8th. Piper Sandler reiterated an "overweight" rating and set a $13.00 price objective on shares of Wendy's in a report on Friday, August 8th. Finally, BTIG Research restated a "neutral" rating on shares of Wendy's in a report on Monday, September 15th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $12.97.

Wendy's Price Performance

The company's fifty day moving average is $10.21 and its 200 day moving average is $11.78. The company has a quick ratio of 1.43, a current ratio of 1.45 and a debt-to-equity ratio of 28.74. The stock has a market cap of $1.77 billion, a PE ratio of 9.70, a price-to-earnings-growth ratio of 1.75 and a beta of 0.37.

Wendy's (NASDAQ:WEN - Get Free Report) last posted its quarterly earnings results on Friday, August 8th. The restaurant operator reported $0.29 EPS for the quarter, beating the consensus estimate of $0.25 by $0.04. Wendy's had a net margin of 8.63% and a return on equity of 103.07%. The firm had revenue of $560.93 million for the quarter, compared to analyst estimates of $558.95 million. During the same quarter last year, the firm posted $0.27 earnings per share. Wendy's's revenue for the quarter was down 1.7% compared to the same quarter last year. Wendy's has set its FY 2025 guidance at 0.820-0.89 EPS. As a group, sell-side analysts anticipate that The Wendy's Company will post 0.99 earnings per share for the current fiscal year.

Wendy's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were given a $0.14 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $0.56 annualized dividend and a yield of 6.0%. Wendy's's dividend payout ratio (DPR) is 58.33%.

Institutional Trading of Wendy's

Several large investors have recently bought and sold shares of the company. Osaic Holdings Inc. grew its position in Wendy's by 125.5% in the second quarter. Osaic Holdings Inc. now owns 98,816 shares of the restaurant operator's stock valued at $1,128,000 after acquiring an additional 54,986 shares in the last quarter. Marex Group plc acquired a new stake in shares of Wendy's during the second quarter worth approximately $121,000. Advisory Services Network LLC grew its position in shares of Wendy's by 6.8% during the second quarter. Advisory Services Network LLC now owns 51,895 shares of the restaurant operator's stock worth $593,000 after buying an additional 3,316 shares in the last quarter. State of Wyoming grew its position in shares of Wendy's by 58.4% during the second quarter. State of Wyoming now owns 17,202 shares of the restaurant operator's stock worth $196,000 after buying an additional 6,340 shares in the last quarter. Finally, FORA Capital LLC acquired a new stake in shares of Wendy's during the second quarter worth approximately $290,000. Institutional investors and hedge funds 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.