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

The Wendy’s Company (NASDAQ:WEN) was the recipient of some unusual options trading on Monday. Stock investors purchased 20,439 put options on the stock. This is an increase of 411% compared to the average volume of 4,002 put options.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC boosted its position in shares of Wendy’s by 85.5% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 279,041 shares of the restaurant operator’s stock valued at $4,548,000 after acquiring an additional 128,579 shares during the last quarter. NorthCrest Asset Manangement LLC bought a new stake in shares of Wendy’s during the 4th quarter valued at about $184,000. Probity Advisors Inc. boosted its position in shares of Wendy’s by 21.9% during the 4th quarter. Probity Advisors Inc. now owns 14,253 shares of the restaurant operator’s stock valued at $232,000 after acquiring an additional 2,564 shares during the last quarter. Neo Ivy Capital Management bought a new stake in shares of Wendy’s during the 4th quarter valued at about $3,723,000. Finally, Vise Technologies Inc. bought a new stake in shares of Wendy’s during the 4th quarter valued at about $171,000. Hedge funds and other institutional investors own 85.96% of the company’s stock.

Wendy’s Stock Performance

Shares of WEN stock traded down $0.33 on Monday, hitting $14.93. 1,507,513 shares of the stock were exchanged, compared to its average volume of 3,952,497. The company has a current ratio of 1.85, a quick ratio of 1.83 and a debt-to-equity ratio of 12.48. The firm has a market capitalization of $2.99 billion, a PE ratio of 15.72, a P/E/G ratio of 2.00 and a beta of 0.73. Wendy’s has a one year low of $13.72 and a one year high of $20.65. The firm’s 50 day moving average is $14.98 and its two-hundred day moving average is $16.83.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings results on Thursday, February 13th. The restaurant operator reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.01. The company had revenue of $574.27 million during the quarter, compared to the consensus estimate of $564.17 million. Wendy’s had a return on equity of 75.56% and a net margin of 8.65%. Sell-side analysts expect that Wendy’s will post 0.99 earnings per share for the current fiscal year.

Wendy’s Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 17th. Shareholders of record on Monday, March 3rd were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 6.70%. The ex-dividend date of this dividend was Monday, March 3rd. Wendy’s’s payout ratio is presently 105.26%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on WEN. Morgan Stanley reaffirmed an “underweight” rating and set a $14.00 target price (down from $22.00) on shares of Wendy’s in a research report on Tuesday, January 21st. Stifel Nicolaus lowered their target price on Wendy’s from $17.00 to $16.00 and set a “hold” rating on the stock in a research report on Wednesday, February 19th. UBS Group upped their target price on Wendy’s from $15.00 to $16.00 and gave the stock a “neutral” rating in a research report on Friday, March 7th. TD Securities reaffirmed a “hold” rating and set a $16.00 target price on shares of Wendy’s in a research report on Friday, March 7th. Finally, Wedbush reaffirmed a “neutral” rating and set a $16.00 target price on shares of Wendy’s in a research report on Friday, March 7th. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating, four have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, Wendy’s presently has an average rating of “Hold” and an average price target of $18.08.

About Wendy’s

The Wendy’s Co engages in operating, developing, and franchising a system of quick-service restaurants. It offers hamburgers and related products, such as chicken breast sandwiches, nuggets, chili, and baked potatoes, French fries, freshly prepared salads, soft drinks, milk, coffee, frosty deserts, and kid’s meals.