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

Key Points

• Wendy's share price hit a new 52-week low of $10.26 during mid-day trading, with the most recent trade at $10.30, indicating potential concerns among investors.
• Research analysts have lowered price targets for Wendy's shares, with estimates ranging from $13.00 to $15.00, while maintaining a general consensus rating of "Hold."
• Wendy's recently declared a dividend of $0.14 per share, representing an annualized yield of 5.48%, amidst a backdrop of reduced quarterly earnings compared to the previous year.

The Wendy's Company (NASDAQ:WEN - Get Free Report) shares reached a new 52-week low during trading on Tuesday . The company traded as low as $10.26 and last traded at $10.30, with a volume of 615104 shares. The stock had previously closed at $10.36.

Analyst Ratings Changes

A number of brokerages recently issued reports on WEN. Morgan Stanley decreased their target price on Wendy's from $13.00 to $11.00 and set an "underweight" rating for the company in a research report on Monday, July 14th. Citigroup reduced their price objective on Wendy's from $13.75 to $11.50 and set a "neutral" rating for the company in a research note on Monday. JPMorgan Chase & Co. upgraded shares of Wendy's from a "neutral" rating to an "overweight" rating and lowered their target price for the stock from $17.00 to $15.00 in a research report on Monday, May 5th. TD Securities cut their target price on shares of Wendy's from $14.00 to $13.00 and set a "hold" rating on the stock in a report on Friday, May 2nd. Finally, Loop Capital decreased 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 note on Wednesday, July 16th. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, six have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, Wendy's has an average rating of "Hold" and a consensus price target of $15.18.

Wendy's Price Performance

The company has a market cap of $1.88 billion, a price-to-earnings ratio of 10.40, a PEG ratio of 2.05 and a beta of 0.34. The company has a 50-day simple moving average of $11.24 and a 200-day simple moving average of $13.04. The company has a debt-to-equity ratio of 24.88, a quick ratio of 1.47 and a current ratio of 1.49.

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, hitting analysts' consensus estimates of $0.20. The firm 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%. Wendy's's quarterly revenue was down 2.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.23 earnings per share. As a group, research analysts predict that The Wendy's Company will post 0.99 earnings per share for the current year.

Insider Buying and Selling at Wendy's

In related news, CMO Lindsay J. Radkoski purchased 5,050 shares of the stock in a transaction dated Tuesday, June 3rd. The shares were acquired at an average cost of $11.68 per share, with a total value of $58,984.00. Following the purchase, the chief marketing officer directly owned 28,956 shares in the company, valued at $338,206.08. This trade represents a 21.12% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Abigail E. Pringle sold 136,819 shares of the firm's stock in a transaction dated Monday, May 5th. The shares were sold at an average price of $12.81, for a total transaction of $1,752,651.39. Following the completion of the sale, the insider owned 203,005 shares of the company's stock, valued at $2,600,494.05. This trade represents a 40.26% decrease in their position. The disclosure for this sale can be found here. 17.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Wendy's

Institutional investors have recently modified their holdings of the company. Colonial Trust Co SC purchased a new position in Wendy's in the 4th quarter valued at approximately $31,000. Farther Finance Advisors LLC grew its holdings in Wendy's by 1,111.9% in the first 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 during the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in Wendy's by 7,180.9% in the first 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 during the last quarter. Signaturefd LLC increased its position in shares of Wendy's by 25.2% in the second quarter. Signaturefd LLC now owns 5,336 shares of the restaurant operator's stock valued at $61,000 after buying an additional 1,074 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of Wendy's by 91.0% during the 1st quarter. GAMMA Investing LLC now owns 4,266 shares of the restaurant operator's stock worth $62,000 after buying an additional 2,033 shares during the last quarter. Hedge funds and other 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.