Wendy’s Sees Unusually High Options Volume (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of unusually large options trading activity on Monday. Stock investors purchased 10,371 put options on the company. This is an increase of 44% compared to the average daily volume of 7,213 put options.

Wendy’s Price Performance

Shares of WEN stock traded down $0.25 on Monday, reaching $10.94. The company’s stock had a trading volume of 3,019,337 shares, compared to its average volume of 5,252,421. The company has a market capitalization of $2.10 billion, a P/E ratio of 11.50, a PEG ratio of 2.00 and a beta of 0.34. Wendy’s has a 12-month low of $10.94 and a 12-month high of $20.60. The stock’s 50 day simple moving average is $12.13 and its 200-day simple moving average is $14.30. The company has a quick ratio of 1.83, a current ratio of 1.85 and a debt-to-equity ratio of 12.48.

Wendy’s (NASDAQ:WEN) last announced its earnings results on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.20. The business had revenue of $523.47 million for the quarter, compared to analyst estimates of $530.11 million. Wendy’s had a return on equity of 75.56% and a net margin of 8.65%. The company’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.23 EPS. As a group, equities analysts predict that Wendy’s will post 0.99 earnings per share for the current fiscal year.

Wendy’s Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 16th. Investors 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 yield of 5.12%. The ex-dividend date is Monday, June 2nd. Wendy’s’s dividend payout ratio is currently 59.57%.

Insiders Place Their Bets

In related news, insider Abigail E. Pringle sold 136,819 shares of the stock in a transaction dated 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 transaction, the insider now owns 203,005 shares in the company, valued at approximately $2,600,494.05. This represents a 40.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CMO Lindsay J. Radkoski acquired 5,050 shares of the stock in a transaction on Tuesday, June 3rd. The stock was bought at an average cost of $11.68 per share, for a total transaction of $58,984.00. Following the transaction, the chief marketing officer now owns 28,956 shares of the company’s stock, valued at approximately $338,206.08. This trade represents a 21.12% increase in their position. The disclosure for this purchase can be found here. 17.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Wendy’s

Several hedge funds have recently bought and sold shares of the stock. SBI Securities Co. Ltd. purchased a new stake in shares of Wendy’s during the 4th quarter valued at $30,000. Colonial Trust Co SC purchased a new stake in Wendy’s during the fourth quarter valued at about $31,000. Farther Finance Advisors LLC lifted its stake in Wendy’s by 1,111.9% during the first quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator’s stock worth $31,000 after purchasing an additional 1,957 shares during the last quarter. Hillsdale Investment Management Inc. purchased a new position in shares of Wendy’s in the 4th quarter worth about $46,000. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Wendy’s by 7,180.9% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator’s stock valued at $50,000 after purchasing an additional 3,375 shares during the last quarter. 85.96% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on WEN shares. Barclays decreased their price target on shares of Wendy’s from $14.00 to $13.00 and set an “equal weight” rating for the company in a research note on Monday, May 5th. Truist Financial decreased their target price on Wendy’s from $17.00 to $16.00 and set a “buy” rating for the company in a research report on Monday, May 5th. UBS Group dropped their price target on Wendy’s from $16.00 to $14.00 and set a “neutral” rating on the stock in a research report on Monday, April 28th. JPMorgan Chase & Co. upgraded Wendy’s from a “neutral” rating to an “overweight” rating and cut their price target for the stock from $17.00 to $15.00 in a research note on Monday, May 5th. Finally, TD Securities lowered their price objective on Wendy’s from $14.00 to $13.00 and set a “hold” rating on the stock in a research note on Friday, May 2nd. Two analysts have rated the stock with a sell rating, twelve have given a hold rating, five have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $16.34.

About Wendy’s

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.