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

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

Analyst Ratings Changes

Several equities research analysts recently weighed in on WEN shares. Evercore ISI reduced their target price on Wendy’s from $11.00 to $9.00 and set an “in-line” rating for the company in a report on Thursday, January 8th. Morgan Stanley lowered their price target on Wendy’s from $9.00 to $8.00 and set an “underweight” rating on the stock in a research note on Tuesday, January 20th. The Goldman Sachs Group reduced their price objective on shares of Wendy’s from $9.00 to $8.00 and set a “sell” rating for the company in a report on Wednesday, December 17th. JPMorgan Chase & Co. restated a “neutral” rating and set a $9.00 target price (down previously from $12.00) on shares of Wendy’s in a research report on Wednesday, December 3rd. Finally, TD Cowen decreased their price objective on shares of Wendy’s from $11.00 to $9.00 and set a “hold” rating on the stock in a research note on Monday, November 10th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price 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 firm has a market cap of $1.48 billion, a price-to-earnings ratio of 8.26, a P/E/G ratio of 1.53 and a beta of 0.39. The company has a 50 day moving average of $8.33 and a 200 day moving average of $9.17.

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

Wendy’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were paid a $0.14 dividend. The ex-dividend date was Monday, December 1st. This represents a $0.56 annualized dividend and a yield of 7.2%. Wendy’s’s dividend payout ratio is currently 59.57%.

Hedge Funds Weigh In On Wendy’s

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Marshall Wace LLP acquired a new stake in shares of Wendy’s during the 3rd quarter valued at $36,912,000. AQR Capital Management LLC grew its holdings in shares of Wendy’s by 30.1% during the second quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator’s stock worth $158,092,000 after purchasing an additional 3,205,269 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Wendy’s by 61.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 5,041,012 shares of the restaurant operator’s stock valued at $57,568,000 after buying an additional 1,915,465 shares during the period. Norges Bank bought a new position in Wendy’s in the 2nd quarter valued at approximately $18,929,000. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its position in Wendy’s by 6,474.9% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,134,230 shares of the restaurant operator’s stock worth $12,953,000 after buying an additional 1,116,979 shares during the period. 85.96% of the stock is owned by institutional investors.

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.