Denny’s (NASDAQ:DENN) Cut to “Hold” at Zacks Investment Research

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Denny’s (NASDAQ:DENN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, Zacks.com reports.

According to Zacks, “Denny’s Corp., formerly Advantica Restaurant Group, Inc., is one of the largest restaurant companies, operating moderately-priced restaurants: Denny’s, Hardee’s, Quincy’s, El Pollo Loco, Coco’s and Carrows. The company believes its restaurants benefit from the diversity of the restaurant concepts, the generally strong market positions and consumer recognition enjoyed by these chains, the benefits of a centralized support system for purchasing, menu development, human resources, management information systems, site selection, restaurant design and construction. “

A number of other equities analysts have also issued reports on the stock. CL King assumed coverage on shares of Denny’s in a research report on Tuesday, October 1st. They set a “buy” rating on the stock. TheStreet lowered shares of Denny’s from a “b-” rating to a “c+” rating in a research report on Wednesday, October 30th. BidaskClub lowered shares of Denny’s from a “sell” rating to a “strong sell” rating in a research report on Tuesday, November 5th. Oppenheimer assumed coverage on shares of Denny’s in a research report on Thursday, September 19th. They set an “outperform” rating and a $27.00 target price on the stock. Finally, ValuEngine lowered shares of Denny’s from a “buy” rating to a “hold” rating in a research report on Wednesday, October 2nd. One investment analyst has rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company’s stock. Denny’s currently has an average rating of “Hold” and an average target price of $24.60.

Shares of DENN stock opened at $19.25 on Wednesday. Denny’s has a 1 year low of $15.53 and a 1 year high of $23.88. The firm’s 50 day moving average is $21.47 and its 200-day moving average is $21.33. The firm has a market capitalization of $1.15 billion, a price-to-earnings ratio of 28.31, a PEG ratio of 3.17 and a beta of 0.09.

Denny’s (NASDAQ:DENN) last announced its earnings results on Tuesday, October 29th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.16 by $0.02. Denny’s had a net margin of 18.80% and a negative return on equity of 34.15%. The company had revenue of $124.30 million for the quarter, compared to analyst estimates of $126.62 million. During the same period in the prior year, the business earned $0.17 earnings per share. Denny’s’s quarterly revenue was down 21.3% on a year-over-year basis. Equities research analysts anticipate that Denny’s will post 0.68 earnings per share for the current year.

In related news, VP Timothy E. Flemming sold 50,873 shares of the business’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $22.82, for a total transaction of $1,160,921.86. Following the completion of the sale, the vice president now directly owns 100,828 shares of the company’s stock, valued at $2,300,894.96. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Christopher D. Bode sold 50,488 shares of the business’s stock in a transaction that occurred on Friday, August 30th. The stock was sold at an average price of $23.53, for a total transaction of $1,187,982.64. Following the sale, the chief operating officer now directly owns 56,196 shares of the company’s stock, valued at $1,322,291.88. The disclosure for this sale can be found here. Over the last three months, insiders have sold 194,146 shares of company stock valued at $4,521,833. 6.10% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently bought and sold shares of DENN. Tower Research Capital LLC TRC bought a new stake in shares of Denny’s during the third quarter worth approximately $48,000. Mesirow Financial Investment Management Equity Management bought a new stake in shares of Denny’s during the second quarter worth approximately $50,000. NumerixS Investment Technologies Inc bought a new stake in shares of Denny’s during the second quarter worth approximately $51,000. Advisory Services Network LLC raised its stake in shares of Denny’s by 1,032.3% during the second quarter. Advisory Services Network LLC now owns 3,510 shares of the restaurant operator’s stock worth $72,000 after buying an additional 3,200 shares during the last quarter. Finally, First Quadrant L P CA bought a new stake in shares of Denny’s during the third quarter worth approximately $82,000. 91.03% of the stock is owned by institutional investors and hedge funds.

About Denny’s

Denny's Corporation, through its subsidiary, Denny's, Inc, owns and operates full-service restaurant chains under the Denny's brand. As of December 26, 2018, it operated 1,709 franchised, licensed, and company restaurants, including 1,578 restaurants in the United States; and 131 in Canada, Puerto Rico, Mexico, New Zealand, the Philippines, Honduras, Costa Rica, the United Arab Emirates, Guam, the United Kingdom, El Salvador, and Guatemala.

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