Other analysts also recently issued reports about the company. Citigroup increased their target price on Wendy’s from $17.00 to $19.00 and gave the company a buy rating in a research note on Monday, March 5th. Zacks Investment Research upgraded Wendy’s from a sell rating to a hold rating and set a $19.00 target price on the stock in a research note on Thursday, May 10th. BidaskClub downgraded Wendy’s from a sell rating to a strong sell rating in a research note on Friday, February 16th. Longbow Research upgraded Wendy’s from a neutral rating to a buy rating in a research note on Thursday, March 8th. Finally, Mizuho began coverage on Wendy’s in a research note on Thursday, March 15th. They set a buy rating and a $19.00 target price on the stock. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and ten have given a buy rating to the stock. Wendy’s currently has a consensus rating of Hold and an average price target of $17.72.
Wendy’s opened at $16.33 on Thursday, MarketBeat.com reports. Wendy’s has a twelve month low of $13.57 and a twelve month high of $17.75. The company has a debt-to-equity ratio of 6.00, a current ratio of 1.77 and a quick ratio of 1.76. The company has a market cap of $3.91 billion, a P/E ratio of 37.98, a P/E/G ratio of 1.51 and a beta of 0.76.
The company also recently declared a quarterly dividend, which will be paid on Friday, June 15th. Stockholders of record on Friday, June 1st will be paid a $0.085 dividend. The ex-dividend date is Thursday, May 31st. This represents a $0.34 dividend on an annualized basis and a dividend yield of 2.08%. Wendy’s’s dividend payout ratio (DPR) is currently 79.07%.
Wendy’s declared that its board has initiated a share buyback program on Thursday, February 15th that permits the company to repurchase $175.00 million in outstanding shares. This repurchase authorization permits the restaurant operator to purchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.
In related news, Director Nelson Peltz sold 2,405,292 shares of Wendy’s stock in a transaction on Wednesday, May 16th. The stock was sold at an average price of $16.43, for a total transaction of $39,518,947.56. Following the transaction, the director now directly owns 9,893,461 shares in the company, valued at $162,549,564.23. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Trian Partners Parallel Fund I sold 5,000,000 shares of Wendy’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $16.50, for a total value of $82,500,000.00. Following the transaction, the insider now owns 5,409,971 shares in the company, valued at $89,264,521.50. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 9,434,832 shares of company stock worth $155,809,973. Company insiders own 23.10% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wells Fargo & Company MN lifted its position in Wendy’s by 7.4% during the fourth quarter. Wells Fargo & Company MN now owns 8,547,151 shares of the restaurant operator’s stock valued at $140,344,000 after purchasing an additional 587,113 shares in the last quarter. Schwab Charles Investment Management Inc. raised its holdings in Wendy’s by 5.8% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 736,132 shares of the restaurant operator’s stock valued at $12,088,000 after acquiring an additional 40,357 shares during the period. Raymond James Financial Services Advisors Inc. raised its holdings in Wendy’s by 15.1% during the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 32,698 shares of the restaurant operator’s stock valued at $537,000 after acquiring an additional 4,298 shares during the period. Jennison Associates LLC raised its holdings in Wendy’s by 1.0% during the fourth quarter. Jennison Associates LLC now owns 1,941,802 shares of the restaurant operator’s stock valued at $31,884,000 after acquiring an additional 18,756 shares during the period. Finally, State of Alaska Department of Revenue bought a new stake in Wendy’s during the fourth quarter valued at about $220,000. Institutional investors own 80.08% of the company’s stock.
The Wendy's Company, through its subsidiaries, operates as a quick-service restaurant company. It is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. The company's restaurants offer a range of chicken breast sandwiches, chicken nuggets, chili, French fries, baked potatoes, salads, soft drinks, desserts, and kids' meals.
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