Wendy's (NASDAQ:WEN) Reaches New 52-Week Low - What's Next?

Key Points

• Wendy's shares hit a new 52-week low at $9.03, closing at $9.05 with a volume of 1,175,149 shares traded.
• Analysts have issued a consensus Hold rating for Wendy's, with an average price target of $12.66 and recent target reductions by firms such as TD Cowen and UBS Group.
• The company reported a quarterly earnings per share (EPS) of $0.29, exceeding estimates, but its revenue declined 1.7% year-over-year.

The Wendy's Company (NASDAQ:WEN - Get Free Report) shares hit a new 52-week low on Monday . The stock traded as low as $9.03 and last traded at $9.05, with a volume of 1175149 shares. The stock had previously closed at $9.21.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Cowen reaffirmed a "hold" rating on shares of Wendy's in a research note on Friday, August 8th. Stifel Nicolaus set a $12.00 target price on shares of Wendy's in a research note on Friday, August 15th. TD Cowen decreased their target price on shares of Wendy's from $13.00 to $11.00 and set a "hold" rating for the company in a research note on Friday, August 8th. UBS Group reissued a "neutral" rating and issued a $11.00 target price (down from $14.00) on shares of Wendy's in a research note on Wednesday, July 30th. Finally, Truist Financial decreased their target price on shares of Wendy's from $14.00 to $13.00 and set a "buy" rating for the company in a research note on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $12.66.

Wendy's Stock Down 1.0%

The firm has a fifty day simple moving average of $10.11 and a 200-day simple moving average of $11.60. The firm has a market cap of $1.74 billion, a price-to-earnings ratio of 9.49, a P/E/G ratio of 1.73 and a beta of 0.37. The company has a debt-to-equity ratio of 28.74, a quick ratio of 1.43 and a current ratio of 1.45.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its quarterly earnings results on Friday, August 8th. The restaurant operator reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.25 by $0.04. Wendy's had a return on equity of 103.07% and a net margin of 8.63%.The business had revenue of $560.93 million during the quarter, compared to the consensus estimate of $558.95 million. During the same quarter last year, the firm posted $0.27 EPS. The company'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. As a group, sell-side analysts expect that The Wendy's Company will post 0.99 EPS for the current year.

Wendy's Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were given a $0.14 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.56 dividend on an annualized basis and a dividend yield of 6.1%. Wendy's's dividend payout ratio (DPR) is presently 58.33%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of WEN. Elevation Point Wealth Partners LLC bought a new position in shares of Wendy's in the second quarter worth $25,000. Farther Finance Advisors LLC increased its position in shares of 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 purchasing an additional 1,957 shares during the period. Steward Partners Investment Advisory LLC increased its position in shares of 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 purchasing an additional 1,041 shares during the period. Caitong International Asset Management Co. Ltd increased its position in shares of 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 purchasing an additional 3,375 shares during the period. Finally, 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 worth $61,000 after purchasing an additional 1,074 shares during the period. 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.

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