Wendy’s Target of Unusually High Options Trading (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of unusually large options trading activity on Wednesday. Stock traders bought 17,119 put options on the company. This is an increase of 141% compared to the typical daily volume of 7,099 put options.

Wendy’s Stock Performance

Shares of WEN opened at $11.11 on Friday. The firm has a market cap of $2.13 billion, a P/E ratio of 11.69, a PEG ratio of 2.00 and a beta of 0.40. Wendy’s has a twelve month low of $11.01 and a twelve month high of $20.60. The firm’s 50 day moving average price is $12.71 and its two-hundred day moving average price is $14.87. The company has a debt-to-equity ratio of 12.48, a quick ratio of 1.83 and a current ratio of 1.85.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings results on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.20. The company had revenue of $523.47 million for the quarter, compared to the consensus estimate of $530.11 million. Wendy’s had a net margin of 8.65% and a return on equity of 75.56%. The firm’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same period last year, the company posted $0.23 EPS. On average, analysts forecast that Wendy’s will post 0.99 EPS for the current fiscal year.

Wendy’s Cuts Dividend

The company also recently declared 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 5.04%. The ex-dividend date is Monday, June 2nd. Wendy’s’s payout ratio is 59.57%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on WEN. Sanford C. Bernstein set a $13.00 price objective on Wendy’s in a research note on Monday, May 5th. TD Securities cut their price target on shares of Wendy’s from $14.00 to $13.00 and set a “hold” rating on the stock in a report on Friday, May 2nd. Wedbush reissued a “neutral” rating and issued a $16.00 price objective on shares of Wendy’s in a report on Friday, March 7th. Stifel Nicolaus lowered their price target on Wendy’s from $16.00 to $14.00 and set a “hold” rating on the stock in a report on Tuesday, April 15th. Finally, Barclays decreased their price target on shares of Wendy’s from $14.00 to $13.00 and set an “equal weight” rating on the stock in a research note on Monday, May 5th. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating, five have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $16.34.

Insider Buying and Selling

In other Wendy’s news, insider Abigail E. Pringle sold 136,819 shares of the business’s stock in a transaction that occurred on Monday, May 5th. The stock was sold at an average price of $12.81, for a total value of $1,752,651.39. Following the transaction, the insider now directly owns 203,005 shares of the company’s stock, valued at approximately $2,600,494.05. The trade was a 40.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 17.00% of the stock is owned by insiders.

Institutional Trading of Wendy’s

Several institutional investors have recently added to or reduced their stakes in WEN. Rhumbline Advisers boosted its stake in Wendy’s by 20.1% during the first quarter. Rhumbline Advisers now owns 700,472 shares of the restaurant operator’s stock valued at $10,248,000 after buying an additional 117,324 shares during the last quarter. Mattson Financial Services LLC grew its holdings in Wendy’s by 18.4% in the first quarter. Mattson Financial Services LLC now owns 59,937 shares of the restaurant operator’s stock worth $877,000 after purchasing an additional 9,314 shares during the last quarter. Intech Investment Management LLC grew its stake in shares of Wendy’s by 398.2% during the first quarter. Intech Investment Management LLC now owns 192,177 shares of the restaurant operator’s stock worth $2,812,000 after acquiring an additional 153,604 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Wendy’s by 1.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 639,085 shares of the restaurant operator’s stock worth $9,350,000 after acquiring an additional 11,072 shares during the last quarter. Finally, United Services Automobile Association acquired a new position in Wendy’s in the 1st quarter worth approximately $161,000. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Wendy’s Company Profile

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.