ValuEngine Downgrades Wendys (NASDAQ:WEN) to Hold

Wendys (NASDAQ:WEN) was downgraded by research analysts at ValuEngine from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday, ValuEngine reports.

Several other research analysts have also recently commented on the stock. JPMorgan Chase & Co. upped their target price on shares of Wendys from $20.00 to $21.00 and gave the stock an “overweight” rating in a research report on Friday, June 28th. Goldman Sachs Group initiated coverage on shares of Wendys in a report on Monday, July 29th. They issued a “sell” rating and a $17.50 price objective for the company. SunTrust Banks increased their price objective on shares of Wendys from $22.00 to $24.00 and gave the company a “buy” rating in a report on Tuesday. Longbow Research reiterated a “buy” rating on shares of Wendys in a report on Wednesday, September 4th. Finally, BTIG Research cut shares of Wendys from a “buy” rating to a “neutral” rating in a report on Tuesday. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and twelve have given a buy rating to the stock. Wendys currently has a consensus rating of “Hold” and an average price target of $20.83.

Shares of NASDAQ:WEN traded up $0.18 during trading on Tuesday, reaching $19.80. 106,928 shares of the company’s stock traded hands, compared to its average volume of 3,240,024. The company has a debt-to-equity ratio of 5.67, a current ratio of 1.97 and a quick ratio of 1.96. Wendys has a 12 month low of $14.96 and a 12 month high of $22.84. The company has a 50 day moving average of $20.25 and a 200-day moving average of $18.92. The stock has a market capitalization of $4.52 billion, a P/E ratio of 33.59, a price-to-earnings-growth ratio of 2.43 and a beta of 0.66.

Wendys (NASDAQ:WEN) last announced its quarterly earnings data on Wednesday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.01. Wendys had a net margin of 28.88% and a return on equity of 23.16%. The business had revenue of $435.30 million during the quarter, compared to the consensus estimate of $439.64 million. During the same quarter in the prior year, the firm earned $0.14 EPS. The company’s revenue for the quarter was up 5.9% compared to the same quarter last year. Equities research analysts predict that Wendys will post 0.63 earnings per share for the current fiscal year.

In other Wendys news, major shareholder Trian Fund Management, L.P. sold 475,000 shares of the stock in a transaction that occurred on Thursday, August 15th. The shares were sold at an average price of $19.90, for a total value of $9,452,500.00. Following the completion of the sale, the insider now owns 5,444,270 shares in the company, valued at approximately $108,340,973. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Matthew H. Peltz sold 2,000,000 shares of the stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $19.97, for a total transaction of $39,940,000.00. Following the completion of the sale, the director now owns 5,444,270 shares of the company’s stock, valued at approximately $108,722,071.90. The disclosure for this sale can be found here. 20.90% of the stock is currently owned by corporate insiders.

Hedge funds have recently added to or reduced their stakes in the business. Geode Capital Management LLC increased its stake in shares of Wendys by 6.3% during the 4th quarter. Geode Capital Management LLC now owns 1,917,851 shares of the restaurant operator’s stock worth $29,937,000 after purchasing an additional 113,514 shares during the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in shares of Wendys during the 1st quarter worth $243,000. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Wendys by 9.5% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 12,322 shares of the restaurant operator’s stock worth $220,000 after purchasing an additional 1,074 shares during the last quarter. Janney Montgomery Scott LLC increased its stake in shares of Wendys by 58.1% during the 1st quarter. Janney Montgomery Scott LLC now owns 99,029 shares of the restaurant operator’s stock worth $1,772,000 after purchasing an additional 36,382 shares during the last quarter. Finally, Moors & Cabot Inc. acquired a new position in shares of Wendys during the 1st quarter worth $182,000. Institutional investors own 77.94% of the company’s stock.

About Wendys

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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Analyst Recommendations for Wendys (NASDAQ:WEN)

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