Wendy's (NASDAQ:WEN) Reaches New 52-Week Low - Time to Sell?

Key Points

• Wendy's shares have reached a new 52-week low, trading at $8.56, down from a previous close of $8.71, with significant trading volume.
• Equity analysts have mostly rated Wendy's as a Hold, with price targets ranging from $7.00 to $12.48, reflecting varied outlooks on the stock's potential.
• The company reported earnings per share (EPS) of $0.29 for the last quarter, exceeding expectations, but noted a year-over-year revenue decline of 1.7%.

The Wendy's Company (NASDAQ:WEN - Get Free Report) shares hit a new 52-week low on Tuesday . The company traded as low as $8.56 and last traded at $8.67, with a volume of 6544799 shares. The stock had previously closed at $8.71.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on WEN shares. Morgan Stanley reissued an "underweight" rating on shares of Wendy's in a research note on Friday, August 8th. Northcoast Research cut Wendy's from a "neutral" rating to a "sell" rating and set a $7.00 price target on the stock. in a research note on Thursday, September 25th. Cowen reissued a "hold" rating on shares of Wendy's in a research note on Friday, August 8th. Jefferies Financial Group dropped their price target on Wendy's from $10.00 to $9.00 and set a "hold" rating on the stock in a research note on Monday. Finally, Loop Capital lowered their target price on Wendy's from $21.00 to $16.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, fourteen have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Wendy's has an average rating of "Hold" and an average price target of $12.48.

Wendy's Stock Down 0.5%

The company has a market cap of $1.65 billion, a price-to-earnings ratio of 9.03, a P/E/G ratio of 1.64 and a beta of 0.38. The company has a current ratio of 1.45, a quick ratio of 1.43 and a debt-to-equity ratio of 28.74. The business has a fifty day moving average price of $9.83 and a two-hundred day moving average price of $11.14.

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

Wendy's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were issued a $0.14 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.56 dividend on an annualized basis and a yield of 6.5%. Wendy's's dividend payout ratio is currently 58.33%.

Hedge Funds Weigh In On Wendy's

Hedge funds have recently added to or reduced their stakes in the company. Elevation Point Wealth Partners LLC acquired a new position in Wendy's in the second quarter worth approximately $25,000. Investors Research Corp acquired a new position in Wendy's in the third quarter worth approximately $27,000. Farther Finance Advisors LLC increased 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 worth $31,000 after buying an additional 1,957 shares during the last quarter. Steward Partners Investment Advisory LLC increased its holdings in Wendy's by 35.0% in the second quarter. Steward Partners Investment Advisory LLC now owns 4,017 shares of the restaurant operator's stock worth $46,000 after buying an additional 1,041 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd increased 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 worth $50,000 after buying an additional 3,375 shares during 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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