Wendy's Target of Unusually Large Options Trading (NASDAQ:WEN)

Key Points

• Wendy’s saw unusually heavy options activity on Monday, with traders buying 144,193 put options, about 289% above its average daily volume.
• Shares were slightly lower at $7.50 during midday trading, leaving the stock near its 50-day and 200-day moving averages and well below its 12-month high of $12.00.
• Wendy’s recently beat quarterly EPS expectations but missed revenue estimates, while analysts remain cautious overall with an average rating of “Reduce” and an average price target of $8.56.

The Wendy's Company (NASDAQ:WEN - Get Free Report) was the target of unusually large options trading activity on Monday. Traders bought 144,193 put options on the company. This is an increase of approximately 289% compared to the average daily volume of 37,088 put options.

Wendy's Stock Performance

Shares of NASDAQ:WEN traded down $0.05 during midday trading on Monday, hitting $7.50. The company had a trading volume of 12,589,087 shares, compared to its average volume of 13,010,618. Wendy's has a 12-month low of $6.07 and a 12-month high of $12.00. The company has a fifty day moving average of $7.40 and a two-hundred day moving average of $7.52. The company has a market cap of $1.43 billion, a price-to-earnings ratio of 9.62, a PEG ratio of 0.55 and a beta of 0.36. The company has a debt-to-equity ratio of 29.25, a current ratio of 1.83 and a quick ratio of 1.81.

Wendy's (NASDAQ:WEN - Get Free Report) last released its earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.02. The company had revenue of $432.30 million for the quarter, compared to the consensus estimate of $518.03 million. Wendy's had a return on equity of 136.46% and a net margin of 6.77%.Wendy's's quarterly revenue was up 3.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.20 earnings per share. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. On average, equities research analysts expect that Wendy's will post 0.58 EPS for the current fiscal year.

Wendy's Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 7.5%. The ex-dividend date of this dividend was Monday, June 1st. Wendy's's payout ratio is presently 71.79%.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on WEN shares. Argus upgraded shares of Wendy's from a "hold" rating to a "buy" rating and set a $12.00 target price for the company in a research note on Wednesday, May 13th. KeyCorp restated a "sector weight" rating on shares of Wendy's in a research note on Wednesday, June 10th. BMO Capital Markets reaffirmed a "market perform" rating on shares of Wendy's in a report on Wednesday, June 10th. Stephens reiterated an "equal weight" rating and set a $8.00 price objective on shares of Wendy's in a research report on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. reissued an "underweight" rating and issued a $6.00 target price (down from $7.00) on shares of Wendy's in a report on Monday, May 11th. Five research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $8.56.

Institutional Investors Weigh In On Wendy's

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WEN. Hilton Head Capital Partners LLC purchased a new position in Wendy's during the fourth quarter valued at approximately $30,000. Fifth Third Bancorp increased its stake in shares of Wendy's by 161.0% in the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator's stock worth $32,000 after purchasing an additional 2,362 shares in the last quarter. Gen Wealth Partners Inc bought a new stake in shares of Wendy's during the 4th quarter valued at $33,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of Wendy's during the 1st quarter valued at $30,000. Finally, SJS Investment Consulting Inc. purchased a new position in shares of Wendy's during the 1st quarter valued at $32,000. 85.96% of the stock is owned by hedge funds and other institutional investors.

Wendy's Company Profile

The Wendy's Company NASDAQ: WEN operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company's menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy's has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.

Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy's expanded rapidly through both company-owned and franchised outlets.

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