Wendy’s (NASDAQ:WEN) Hits New 1-Year Low – Time to Sell?

The Wendy’s Company (NASDAQ:WEN) hit a new 52-week low during trading on Thursday . The stock traded as low as $7.73 and last traded at $7.7450, with a volume of 1737014 shares trading hands. The stock had previously closed at $7.94.

Analysts Set New Price Targets

Several research firms have recently commented on WEN. Stifel Nicolaus cut their price objective on Wendy’s from $12.00 to $11.00 and set a “hold” rating for the company in a report on Friday, October 31st. UBS Group cut their target price on shares of Wendy’s from $9.50 to $8.50 and set a “neutral” rating for the company in a research note on Tuesday, January 6th. Evercore ISI dropped their price objective on Wendy’s from $11.00 to $9.00 and set an “in-line” rating on the stock in a research note on Thursday, January 8th. Barclays reduced their target price on Wendy’s from $11.00 to $9.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 22nd. Finally, Mizuho dropped their price target on Wendy’s from $8.00 to $7.00 and set an “underperform” rating on the stock in a research note on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have assigned a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $10.30.

Wendy’s Price Performance

The company has a current ratio of 0.81, a quick ratio of 0.80 and a debt-to-equity ratio of 26.89. The company has a 50 day moving average of $8.32 and a 200-day moving average of $9.14. The firm has a market capitalization of $1.48 billion, a P/E ratio of 8.29, a P/E/G ratio of 1.48 and a beta of 0.39.

Wendy’s (NASDAQ:WEN) last posted its earnings results on Friday, November 7th. The restaurant operator reported $0.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. The company had revenue of $442.50 million during the quarter, compared to the consensus estimate of $535.75 million. Wendy’s had a return on equity of 125.74% and a net margin of 8.43%.The company’s revenue was down 3.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.25 earnings per share. Wendy’s has set its FY 2025 guidance at 0.820-0.890 EPS. On average, sell-side analysts predict that The Wendy’s Company will post 0.99 EPS for the current year.

Wendy’s Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 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 7.2%. The ex-dividend date was Monday, December 1st. Wendy’s’s dividend payout ratio is presently 59.57%.

Institutional Investors Weigh In On Wendy’s

Hedge funds and other institutional investors have recently made changes to their positions in the business. Elevation Point Wealth Partners LLC acquired a new stake in Wendy’s during the second quarter worth approximately $25,000. Investors Research Corp bought a new stake in shares of Wendy’s during the 3rd quarter valued at $27,000. Versant Capital Management Inc grew its holdings in shares of Wendy’s by 19,693.8% during the 3rd quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock worth $29,000 after purchasing an additional 3,151 shares in the last quarter. MassMutual Private Wealth & Trust FSB increased its position in shares of Wendy’s by 205.0% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator’s stock worth $30,000 after purchasing an additional 2,189 shares during the period. Finally, Steward Partners Investment Advisory LLC raised its stake in Wendy’s by 35.0% in the second quarter. Steward Partners Investment Advisory LLC now owns 4,017 shares of the restaurant operator’s stock valued at $46,000 after purchasing an additional 1,041 shares in the last quarter. 85.96% of the stock is currently owned by institutional investors and hedge funds.

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.