Wendy's (NASDAQ:WEN) Hits New 52-Week Low - Should You Sell?

Key Points

• Wendy's shares hit a new 52-week low at $8.99, with the stock last trading at $9.00 after a volume of over 2.9 million shares.
• Analysts have mixed opinions on Wendy's performance, with one analyst rating it a Strong Buy, five issuing Buy ratings, and four rating it a Sell, leading to an average rating of "Hold" with a target price of $12.66.
• The company recently announced a quarterly dividend of $0.14, reflecting an annual yield of 6.2% and a payout ratio of 58.33%.

Shares of The Wendy's Company (NASDAQ:WEN - Get Free Report) reached a new 52-week low on Wednesday . The stock traded as low as $8.99 and last traded at $9.00, with a volume of 2911383 shares traded. The stock had previously closed at $9.11.

Wall Street Analysts Forecast Growth

WEN has been the subject of several recent analyst reports. Morgan Stanley restated an "underweight" rating on shares of Wendy's in a research report on Friday, August 8th. Weiss Ratings restated a "sell (d+)" rating on shares of Wendy's in a research report on Wednesday. Loop Capital reduced their price target on shares of Wendy's from $21.00 to $16.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Wall Street Zen raised shares of Wendy's from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Finally, UBS Group reissued a "neutral" rating and issued a $11.00 price target (down from $14.00) on shares of Wendy's in a research report on Wednesday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $12.66.

Wendy's Trading Down 1.3%

The company has a debt-to-equity ratio of 28.74, a current ratio of 1.45 and a quick ratio of 1.43. The business's 50 day moving average price is $9.92 and its 200-day moving average price is $11.34. The firm has a market capitalization of $1.71 billion, a price-to-earnings ratio of 9.36, a price-to-earnings-growth ratio of 1.76 and a beta of 0.38.

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

Wendy's Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were issued 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 6.2%. Wendy's's dividend payout ratio is 58.33%.

Institutional Trading of Wendy's

A number of large investors have recently made changes to their positions in WEN. Gradient Investments LLC boosted its holdings in shares of Wendy's by 6.2% during the second quarter. Gradient Investments LLC now owns 836,626 shares of the restaurant operator's stock worth $9,554,000 after purchasing an additional 48,736 shares during the last quarter. Intech Investment Management LLC lifted 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 worth $2,812,000 after purchasing an additional 153,604 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Wendy's by 7.4% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 6,767,723 shares of the restaurant operator's stock worth $99,012,000 after buying an additional 464,444 shares in the last quarter. Rhumbline Advisers lifted its stake in shares of Wendy's by 20.1% in the first quarter. Rhumbline Advisers now owns 700,472 shares of the restaurant operator's stock worth $10,248,000 after acquiring an additional 117,324 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its position in shares of Wendy's by 5.9% in the 1st quarter. Bank of New York Mellon Corp now owns 2,577,359 shares of the restaurant operator's stock valued at $37,707,000 after purchasing an additional 142,500 shares in the last quarter. 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.

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