Wendy's (NASDAQ:WEN) Sets New 12-Month Low After Analyst Downgrade

The Wendy's Company (NASDAQ:WEN - Get Free Report)'s share price hit a new 52-week low on Monday after Morgan Stanley lowered their price target on the stock from $13.00 to $11.00. Morgan Stanley currently has an underweight rating on the stock. Wendy's traded as low as $10.83 and last traded at $10.85, with a volume of 1228834 shares changing hands. The stock had previously closed at $11.02.

Other analysts have also issued research reports about the company. Sanford C. Bernstein set a $13.00 price target on Wendy's in a report on Monday, May 5th. Loop Capital reduced their target price on Wendy's from $26.00 to $21.00 and set a "buy" rating on the stock in a research note on Monday, May 5th. Barclays reduced their target price 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. Stifel Nicolaus lowered their price target on Wendy's from $16.00 to $14.00 and set a "hold" rating for the company in a report on Tuesday, April 15th. Finally, TD Securities reduced their price objective on Wendy's from $14.00 to $13.00 and set a "hold" rating on the stock in a report on Friday, May 2nd. Two investment analysts have rated the stock with a sell rating, thirteen have given a hold rating, five have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $16.13.

Insiders Place Their Bets

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

Institutional Trading of Wendy's

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Jones Financial Companies Lllp lifted its stake in Wendy's by 424.5% during the fourth quarter. Jones Financial Companies Lllp now owns 6,488 shares of the restaurant operator's stock worth $106,000 after purchasing an additional 5,251 shares in the last quarter. Proficio Capital Partners LLC purchased a new position in Wendy's during the 4th quarter valued at about $213,000. Raymond James Financial Inc. acquired a new position in Wendy's in the 4th quarter valued at about $824,000. Amundi increased its stake in Wendy's by 7,752.6% during the fourth quarter. Amundi now owns 190,032 shares of the restaurant operator's stock worth $2,885,000 after purchasing an additional 187,612 shares during the period. Finally, Frank Rimerman Advisors LLC increased its stake in Wendy's by 258.4% during the fourth quarter. Frank Rimerman Advisors LLC now owns 46,907 shares of the restaurant operator's stock worth $765,000 after purchasing an additional 33,819 shares during the period. 85.96% of the stock is owned by institutional investors and hedge funds.

Wendy's Price Performance

The company's 50-day moving average price is $11.66 and its 200-day moving average price is $13.51. The company has a quick ratio of 1.47, a current ratio of 1.49 and a debt-to-equity ratio of 24.88. The firm has a market cap of $2.09 billion, a price-to-earnings ratio of 11.60, a PEG ratio of 1.70 and a beta of 0.34.

Wendy's (NASDAQ:WEN - Get Free Report) last issued 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 company had revenue of $523.47 million during the quarter, compared to the consensus estimate of $530.11 million. Wendy's had a net margin of 8.57% and a return on equity of 85.36%. The firm's quarterly revenue was down 2.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.23 earnings per share. On average, equities research analysts forecast that The Wendy's Company will post 0.99 EPS for the current year.

Wendy's Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 2nd were given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 5.14%. The ex-dividend date was Monday, June 2nd. Wendy's's dividend payout ratio (DPR) is currently 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.