How Should Investors View The Wendy’s Company (WEN) Insider Trading?


As of Friday close, The Wendy’s Company’s (NASDAQ:WEN) stock was down -$0.31, moving down -1.48 percent to $20.59. The average number of shares traded per day over the past five days has been 6,363,340 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.29 fall in that time frame. In the last twenty days, the average volume was 3,952,685, while in the previous 50 days, it was 2,955,282.

Since last month, WEN stock retreated -10.32%. Shares of the company fell to $20.30 on 03/15/23, the lowest level in the past month. A 52-week high of $23.78 was reached on 01/17/23 after having rallying from a 52-week low of $15.77. Since the beginning of this year, WEN’s stock price has dropped by -9.01% or -$2.04, and marked a new high 5 times. However, the stock has declined by -13.41% since its 52-week high.

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WEN stock investors should be aware that The Wendy’s Company (WEN) stock had its last reported insider trading activity 9 days ago on Mar 09. Esposito Liliana, the Chf Corp Affrs & Sustnblty Ofc of the company, disposed of 64,701 shares for $21.26 on Mar 09. It resulted in a $1,375,543 divestment by the insider. Peltz Matthew H. sold 3,627,569 shares at an average price of $22.05 on Mar 03. The insider now owns 21,705,770 shares following the transaction. On Mar 03, Director MAY PETER W sold 3,627,569 shares at $22.05 apiece. The transaction was valued at $79,987,896.

Valuation Metrics

Right now, The Wendy’s Company (WEN) has a P/E ratio of about 25.05. The stock’s beta is 0.93. Besides these, the trailing price-to-sales (P/S) ratio of 2.11, the price-to-book (PB) ratio of 9.40, and the price-to-cash flow ratio of 65.37 may also be considered.

The latest dividend of $0.25 per share was paid out, remained unchanged from last year’s $0.25. On Friday January 13 2023, a $0.1250 dividend increase was announced.

Financial Health

In the three months ended September 29, The Wendy’s Company’s quick ratio stood at 2.70, while its current ratio was 2.70, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 7.29, and the total debt-to-equity ratio was 7.39. On the profitability front, the trailing twelve-month gross margin is 62.30% percent. In the year ended September 29, operating margins totaled 16.90%. Based on annual data, WEN earned $1.28 billion in gross profit and brought in $2.1 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 7.30%. Return on equity (ROE) for the past 12 months was 39.80%.

In The Wendy’s Company’s quarter-end financial report for September 29, it reported total debt of $2.83 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. WEN’s revenue rose 11.7% to $537.78 million during the quarter, while net income inched up to $532.57 million. While analysts expected The Wendy’s Company to report $0.23 quarterly earnings, the actual figure was $0.24 per share, beating the consensus estimate by 4.30%. During the quarter, the company generated $118.03 million in EBITDA. The liabilities of The Wendy’s Company were 5.03 billion at the end of its most recent quarter ended September 29, and its total debt was $4.29 billion. The value of shareholders’ equity is $212.59 million.

Technical Picture

This quick technical analysis looks at The Wendy’s Company’s (WEN) price momentum. With a historical volatility rate of 17.95%, the RSI 9-day stood at 29.38% on 17 March.

With respect to its five-day moving average, the current The Wendy’s Company price is down by -1.39% percent or -$0.29. At present, WEN shares trade -10.05% below its 20-day simple moving average and +1.93% percent above its 100-day simple moving average. However, the stock is currently trading approximately -9.77% below its SMA50 and +10.46% above its SMA200.

Stochastic coefficient K was 18.05% and Stochastic coefficient D was 15.52%, while ATR was 0.51. Given the Stochastic reading of 12.89% for the 14-day period, the RSI (14) reading has been calculated as 32.34%. As of today, the MACD Oscillator reading stands at -0.19, while the 14-day reading stands at -0.60.

Analyst Ratings

The Wendy’s Company downgraded its rating on The Wendy’s Company (NASDAQ: WEN) to a Neutral in a note to investors on March 06, 2023. The analysts firm previously had a Buy rating on the stock.The Wendy’s Company (WEN) has been rated Overweight by analysts. According to 0 brokerage firms, WEN is a sell, and 17 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 2 analysts rate The Wendy’s Company stock as buy, with 8 recommending it as overweight.


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