Wendy's (NASDAQ:WEN) Sets New 52-Week Low - Here's Why

The Wendy's Company (NASDAQ:WEN - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday . The company traded as low as $10.91 and last traded at $10.97, with a volume of 3363885 shares traded. The stock had previously closed at $11.18.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. TD Securities lowered their price objective 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. Barclays dropped their price target on shares of Wendy's from $14.00 to $13.00 and set an "equal weight" rating on the stock in a research report on Monday, May 5th. Argus raised Wendy's to a "strong-buy" rating in a research note on Tuesday, February 18th. Stifel Nicolaus dropped their target price on Wendy's from $16.00 to $14.00 and set a "hold" rating on the stock in a report on Tuesday, April 15th. Finally, BMO Capital Markets decreased their price target on Wendy's from $17.00 to $15.00 and set a "market perform" rating for the company in a report on Tuesday, May 6th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating, five have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $16.34.

Wendy's Stock Performance

The business has a 50 day moving average of $12.13 and a 200-day moving average of $14.30. The company has a market capitalization of $2.15 billion, a P/E ratio of 11.81, a price-to-earnings-growth ratio of 2.00 and a beta of 0.34. The company has a debt-to-equity ratio of 12.48, a quick ratio of 1.83 and a current ratio of 1.85.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its quarterly earnings results on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.20. The firm had revenue of $523.47 million for the quarter, compared to the consensus estimate of $530.11 million. Wendy's had a net margin of 8.65% and a return on equity of 75.56%. The company's revenue for the quarter was down 2.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.23 earnings per share. On average, sell-side analysts predict that The Wendy's Company will post 0.99 EPS for the current fiscal year.

Wendy's Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 16th. Investors of record on Monday, June 2nd will be given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 4.99%. The ex-dividend date of this dividend is Monday, June 2nd. Wendy's's payout ratio is 59.57%.

Insider Activity

In other news, insider Abigail E. Pringle sold 136,819 shares of the stock in a transaction dated Monday, May 5th. The stock was sold at an average price of $12.81, for a total transaction of $1,752,651.39. Following the transaction, the insider now directly owns 203,005 shares in the company, valued at approximately $2,600,494.05. This represents a 40.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CMO Lindsay J. Radkoski bought 5,050 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The stock was purchased at an average price of $11.68 per share, with a total value of $58,984.00. Following the transaction, the chief marketing officer now directly owns 28,956 shares in the company, valued at $338,206.08. The trade was a 21.12% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 17.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. SBI Securities Co. Ltd. purchased a new position in Wendy's in the 4th quarter worth approximately $30,000. Colonial Trust Co SC bought a new position in shares of Wendy's in the fourth quarter worth approximately $31,000. Farther Finance Advisors LLC increased its stake 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 buying an additional 1,957 shares during the period. Hillsdale Investment Management Inc. bought a new stake in Wendy's during the 4th quarter valued at $46,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in Wendy's by 7,180.9% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator's stock valued at $50,000 after buying an additional 3,375 shares during the period. 85.96% of the stock is owned by institutional investors.

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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