Wendy’s (NASDAQ:WEN) Shares Up 11.3% – Should You Buy?

The Wendy’s Company (NASDAQ:WEN) was up 11.3% on Wednesday . The company traded as high as $8.53 and last traded at $8.4020. Approximately 6,626,751 shares changed hands during trading, a decline of 46% from the average session volume of 12,239,189 shares. The stock had previously closed at $7.55.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Mizuho set a $6.00 target price on Wendy’s in a research report on Friday, May 1st. Weiss Ratings reissued a “sell (d+)” rating on shares of Wendy’s in a research report on Friday, July 17th. JPMorgan Chase & Co. restated an “underweight” rating and issued a $6.00 price target (down from $7.00) on shares of Wendy’s in a research note on Monday, May 11th. BMO Capital Markets reaffirmed a “market perform” rating on shares of Wendy’s in a report on Monday. Finally, Morgan Stanley set a $5.50 price objective on shares of Wendy’s in a research note on Monday. Two investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and six have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $7.76.

Wendy’s Trading Down 0.1%

The company has a market cap of $1.65 billion, a P/E ratio of 13.11, a P/E/G ratio of 0.67 and a beta of 0.37. The business has a fifty day simple moving average of $7.48 and a 200 day simple moving average of $7.39. The company has a debt-to-equity ratio of 27.95, a quick ratio of 1.88 and a current ratio of 1.90.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.02. Wendy’s had a return on equity of 115.31% and a net margin of 5.72%.The business had revenue of $570.57 million during the quarter, compared to the consensus estimate of $557.13 million. During the same period in the previous year, the business earned $0.29 EPS. The business’s quarterly revenue was up 1.8% on a year-over-year basis. Analysts anticipate that The Wendy’s Company will post 0.54 earnings per share for the current fiscal year.

Wendy’s Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, September 1st. Wendy’s’s dividend payout ratio is 84.85%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Global Retirement Partners LLC bought a new position in Wendy’s in the second quarter worth about $27,000. Hilton Head Capital Partners LLC bought a new position in Wendy’s during the 4th quarter worth $30,000. Cassaday & Co Wealth Management LLC acquired a new stake in Wendy’s in the first quarter worth $30,000. Fifth Third Bancorp lifted its stake in Wendy’s by 161.0% in the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator’s stock valued at $32,000 after buying an additional 2,362 shares during the last quarter. Finally, SJS Investment Consulting Inc. bought a new position in shares of Wendy’s during the first quarter worth about $32,000. 85.96% of the stock is owned by institutional investors and hedge funds.

About Wendy’s

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.