The Wendy’s Company (NASDAQ:WEN) finished Friday with a subtraction of -$0.14 to close at $20.18, a downside of -0.69 percent. An average of 2,381,160 shares of common stock have been traded in the last five days. There was a fall of -$0.46 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 2,504,800 shares traded, while the 50-day average volume stands at 2,455,276.
WEN stock has decreased by -6.57% in the last month. The company shares reached their 1-month lowest point of $19.91 on 08/24/23. With the stock rallying to its 52-week high on 05/10/23, shares of the company touched a low of $18.50 and a high of $23.90 in 52 weeks. It has reached a new high 6 times so far this year and lost -10.83% or -$2.45 in price. In spite of this, the price is down -15.56% from the 52-week high.
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Insider Transactions
WEN stock investors should be aware that The Wendy’s Company (WEN) stock had its last reported insider trading activity 4 days ago on Aug 22. In this transaction, the insider spent $58,983,051. Director, PELTZ NELSON, disposed of 2,905,569 shares at a price of $20.30 on Aug 22. The insider now owns more than $58,983,051 worth of shares. Prior to that, Director MAY PETER W went on to Sale 2,905,569 shares at $20.30 each on Aug 22. An amount of $58,983,051 was transacted.
Valuation Metrics
The Wendy’s Company (WEN) has a trailing price-to-earnings (P/E) ratio of 22.62. The stock’s beta is 0.90. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.97, the price-to-book (PB) ratio at 10.85, and the price-to-cash flow ratio at 19.47.
Financial Health
The quick ratio of The Wendy’s Company for the three months ended June 29 was 2.50, and the current ratio was 2.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 8.56 and a total debt to equity ratio of 8.69 for the quarter ending June 29. The Wendy’s Company’s EBITDA margin for the year ending June 29 is 23.85%, while its operating margin for the same period stands at 17.40%. Its gross profit as reported stood at $1.28 billion compared to revenue of $2.1 billion.
Earnings Surprise
For the three-month period that ended June 29, The Wendy’s Company had $2.78 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $59.63 million in the quarter, while revenues of $39.82 million were grew 19.25%. The analyst consensus anticipated The Wendy’s Company’s latest quarter earnings to come in at $0.27 per share, but it turned out to be $0.28, a 3.70% surprise. For the quarter, EBITDA amounted to $145.04 million. Shareholders own equity worth $209.29 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at The Wendy’s Company (WEN) price momentum. RSI 9-day as of the close on 25 August was 25.66%, suggesting the stock is oversold, with historical volatility in this time frame at 11.57%.
As of today, WEN’s price is $20.33 -2.23% or -$0.46 from its 5-day moving average. WEN is currently trading -5.92% lower than its 20-day SMA and -9.43% lower than its 100-day SMA. However, the stock’s current price level is -8.15% below the SMA50 and -2.04% below the SMA200.
The stochastic %K and %D were 9.34% and 7.75%, respectively, and the average true range (ATR) was 0.40. With the 14-day stochastic at 10.78% and the average true range at 0.39, the RSI (14) stands at 29.80%. The stock has reached -0.43 on the 9-day MACD Oscillator while the 14-day reading was at -0.75.
Analyst Ratings
The consensus rating for The Wendy’s Company (WEN) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell WEN, while 15 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 10 others rate it as a “buy”.
What is WEN’s price target for the next 12 months?
Analysts predict a range of price targets between $22.00 and $31.00, with a median target of $24.50. Taking a look at these predictions, the average price target given by analysts for The Wendy’s Company (WEN) stock is $24.98.
