Wendy's (NASDAQ:WEN) Sets New 52-Week Low on Analyst Downgrade

The Wendy's Company (NASDAQ:WEN - Get Free Report) shares hit a new 52-week low on Tuesday after BMO Capital Markets lowered their price target on the stock from $17.00 to $15.00. BMO Capital Markets currently has a market perform rating on the stock. Wendy's traded as low as $11.90 and last traded at $11.93, with a volume of 2022566 shares trading hands. The stock had previously closed at $12.52.

A number of other equities research analysts have also weighed in on the stock. Truist Financial decreased their target price on shares of Wendy's from $17.00 to $16.00 and set a "buy" rating for the company in a research note on Monday. Argus upgraded shares of Wendy's to a "strong-buy" rating in a research report on Tuesday, February 18th. Royal Bank of Canada reiterated a "sector perform" rating and set a $17.00 price target on shares of Wendy's in a report on Tuesday, March 4th. Stephens reissued an "equal weight" rating and issued a $14.00 price objective on shares of Wendy's in a research note on Friday. Finally, Morgan Stanley decreased their price objective on Wendy's from $14.00 to $13.00 and set an "underweight" rating for the company in a research note on Monday. Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating, five have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, Wendy's currently has a consensus rating of "Hold" and a consensus price target of $16.53.

Institutional Investors Weigh In On Wendy's

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Franklin Resources Inc. purchased a new stake in shares of Wendy's in the 3rd quarter valued at approximately $763,000. GAMMA Investing LLC lifted its stake in Wendy's by 168.1% during the 4th quarter. GAMMA Investing LLC now owns 2,233 shares of the restaurant operator's stock worth $36,000 after acquiring an additional 1,400 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its holdings in Wendy's by 1.4% during 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 stake in Wendy's during the fourth quarter worth about $357,000. Finally, Oak Thistle LLC purchased a new position in shares of Wendy's in the fourth quarter valued at approximately $516,000. Hedge funds and other institutional investors own 85.96% of the company's stock.

Wendy's Stock Performance

The stock has a market capitalization of $2.34 billion, a PE ratio of 12.53, a P/E/G ratio of 2.00 and a beta of 0.40. The company has a debt-to-equity ratio of 12.48, a quick ratio of 1.83 and a current ratio of 1.85. The firm's 50 day moving average is $13.98 and its two-hundred day moving average is $15.79.

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

Wendy's Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 16th. Stockholders of record on Monday, June 2nd will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 4.70%. The ex-dividend date is Monday, June 2nd. Wendy's's dividend payout ratio (DPR) is 59.57%.

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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