Wendy's (NASDAQ:WEN) Reaches New 12-Month Low After Insider Selling

The Wendy's Company (NASDAQ:WEN - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $11.90 and last traded at $11.93, with a volume of 2022566 shares changing hands. The stock had previously closed at $12.52.

Specifically, insider Abigail E. Pringle sold 136,819 shares of the company's stock in a transaction on 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 now directly owns 203,005 shares of the company's stock, 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 is accessible through the SEC website.

Analyst Ratings Changes

WEN has been the subject of a number of research analyst reports. Royal Bank of Canada reaffirmed a "sector perform" rating and issued a $17.00 price target on shares of Wendy's in a research note on Tuesday, March 4th. UBS Group cut their target price on Wendy's from $16.00 to $14.00 and set a "neutral" rating on the stock in a report on Monday, April 28th. JPMorgan Chase & Co. raised Wendy's from a "neutral" rating to an "overweight" rating and lowered their target price for the company from $17.00 to $15.00 in a report on Monday, May 5th. The Goldman Sachs Group decreased their target price on shares of Wendy's from $17.00 to $15.00 and set a "sell" rating on the stock in a research report on Thursday, February 6th. Finally, Sanford C. Bernstein set a $13.00 price target on Wendy's in a research note on Monday, May 5th. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating, five have given a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat.com, Wendy's has a consensus rating of "Hold" and an average target price of $16.34.

Wendy's Trading Down 1.1 %

The company has a current ratio of 1.85, a quick ratio of 1.83 and a debt-to-equity ratio of 12.48. The business's 50 day moving average price is $13.71 and its 200-day moving average price is $15.59. The company has a market cap of $2.30 billion, a price-to-earnings ratio of 12.62, a PEG ratio of 2.00 and a beta of 0.40.

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

Wendy's Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 16th. Stockholders of record on Monday, June 2nd will be paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 4.67%. The ex-dividend date of this dividend is Monday, June 2nd. Wendy's's dividend payout ratio is 59.57%.

Institutional Trading of Wendy's

Several hedge funds have recently modified their holdings of the stock. Franklin Resources Inc. acquired a new position in Wendy's during the third quarter worth $763,000. GAMMA Investing LLC raised its holdings in shares of Wendy's by 168.1% in the 4th quarter. GAMMA Investing LLC now owns 2,233 shares of the restaurant operator's stock worth $36,000 after purchasing an additional 1,400 shares during the period. Wealth Enhancement Advisory Services LLC raised its stake in Wendy's by 1.4% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 152,549 shares of the restaurant operator's stock valued at $2,673,000 after acquiring an additional 2,087 shares during the period. Miracle Mile Advisors LLC purchased a new position in Wendy's in the 4th quarter valued at approximately $357,000. Finally, Oak Thistle LLC bought a new position in Wendy's in the 4th quarter worth about $516,000. Institutional investors 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.