Stock Traders Purchase High Volume of Call Options on Wendys (NASDAQ:WEN)

Wendys Co (NASDAQ:WEN) was the recipient of unusually large options trading on Tuesday. Stock traders purchased 9,853 call options on the company. This is an increase of 110% compared to the average volume of 4,691 call options.

WEN opened at $21.66 on Wednesday. The business has a 50 day moving average price of $21.46 and a 200 day moving average price of $20.09. Wendys has a twelve month low of $6.82 and a twelve month high of $24.04. The company has a debt-to-equity ratio of 8.01, a quick ratio of 1.36 and a current ratio of 1.37. The firm has a market cap of $4.82 billion, a P/E ratio of 42.47, a price-to-earnings-growth ratio of 5.77 and a beta of 1.23.

Wendys (NASDAQ:WEN) last posted its earnings results on Wednesday, May 6th. The restaurant operator reported $0.09 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.10 by ($0.01). Wendys had a return on equity of 22.37% and a net margin of 7.01%. The company had revenue of $404.96 million during the quarter, compared to analyst estimates of $413.02 million. During the same quarter last year, the firm posted $0.14 earnings per share. The firm’s revenue for the quarter was down .9% compared to the same quarter last year. As a group, analysts anticipate that Wendys will post 0.53 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were issued a $0.05 dividend. The ex-dividend date of this dividend was Friday, May 29th. This represents a $0.20 annualized dividend and a yield of 0.92%. Wendys’s dividend payout ratio (DPR) is currently 33.90%.

In related news, CFO Gunther Plosch sold 167,170 shares of Wendys stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $21.40, for a total transaction of $3,577,438.00. Following the transaction, the chief financial officer now directly owns 282,451 shares of the company’s stock, valued at $6,044,451.40. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Abigail E. Pringle sold 20,319 shares of Wendys stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $20.93, for a total value of $425,276.67. Following the completion of the transaction, the insider now directly owns 136,307 shares in the company, valued at approximately $2,852,905.51. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 558,661 shares of company stock worth $11,816,556. 20.90% of the stock is owned by corporate insiders.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Sunbelt Securities Inc. acquired a new stake in Wendys in the 4th quarter worth approximately $3,630,000. FinTrust Capital Advisors LLC increased its position in Wendys by 120.8% in the 1st quarter. FinTrust Capital Advisors LLC now owns 1,828 shares of the restaurant operator’s stock worth $27,000 after buying an additional 1,000 shares during the period. Fifth Third Bancorp increased its position in Wendys by 56.0% in the 1st quarter. Fifth Third Bancorp now owns 2,787 shares of the restaurant operator’s stock worth $41,000 after buying an additional 1,000 shares during the period. First Mercantile Trust Co. increased its position in Wendys by 25.6% in the 1st quarter. First Mercantile Trust Co. now owns 3,315 shares of the restaurant operator’s stock worth $49,000 after buying an additional 675 shares during the period. Finally, Rockefeller Capital Management L.P. bought a new position in Wendys in the 1st quarter worth approximately $49,000. Hedge funds and other institutional investors own 67.68% of the company’s stock.

WEN has been the topic of a number of analyst reports. MKM Partners lifted their price target on Wendys from $19.00 to $22.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Longbow Research dropped their price target on Wendys from $25.00 to $19.00 and set a “buy” rating on the stock in a research note on Friday, March 27th. Wedbush reissued a “buy” rating and issued a $24.00 price target on shares of Wendys in a research note on Wednesday, May 6th. Cowen raised Wendys from a “market perform” rating to an “outperform” rating and set a $21.00 price target on the stock in a research note on Tuesday, March 31st. Finally, ValuEngine lowered Wendys from a “buy” rating to a “hold” rating in a research report on Friday, May 1st. Two equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and sixteen have issued a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $22.09.

Wendys Company Profile

The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide.

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