Wendys (NASDAQ:WEN) Receives “Buy” Rating from SunTrust Banks

SunTrust Banks reissued their buy rating on shares of Wendys (NASDAQ:WEN) in a research note released on Wednesday, TipRanks reports.

WEN has been the topic of a number of other research reports. BMO Capital Markets increased their price target on Wendys from $19.00 to $21.00 and gave the company an outperform rating in a research note on Thursday, May 9th. ValuEngine upgraded Wendys from a hold rating to a buy rating in a research note on Tuesday. Bank of America set a $20.00 price target on Wendys and gave the company a hold rating in a research note on Friday, May 10th. Piper Jaffray Companies started coverage on Wendys in a research note on Monday, May 13th. They issued an overweight rating and a $22.00 price target on the stock. Finally, Zacks Investment Research upgraded Wendys from a hold rating to a buy rating and set a $20.00 price target on the stock in a research note on Saturday, June 15th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and thirteen have issued a buy rating to the stock. The stock currently has an average rating of Buy and an average price target of $20.21.

WEN opened at $21.08 on Wednesday. Wendys has a 1-year low of $14.96 and a 1-year high of $21.42. The stock’s fifty day simple moving average is $19.37 and its 200 day simple moving average is $18.55. The company has a current ratio of 1.97, a quick ratio of 1.96 and a debt-to-equity ratio of 5.67. The stock has a market cap of $4.86 billion, a PE ratio of 35.73, a price-to-earnings-growth ratio of 2.29 and a beta of 0.72.

Wendys (NASDAQ:WEN) last posted its quarterly earnings results on Wednesday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.01. Wendys had a return on equity of 23.16% and a net margin of 28.88%. The business had revenue of $435.30 million for the quarter, compared to analysts’ expectations of $439.64 million. During the same quarter in the prior year, the business earned $0.14 EPS. The firm’s revenue for the quarter was up 5.9% on a year-over-year basis. Equities analysts forecast that Wendys will post 0.63 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 1.90%. The ex-dividend date of this dividend is Friday, August 30th. Wendys’s dividend payout ratio is 67.80%.

In other news, Director Matthew H. Peltz sold 2,000,000 shares of the stock in a transaction on Friday, August 16th. The stock was sold at an average price of $19.97, for a total transaction of $39,940,000.00. Following the sale, the director now directly owns 5,444,270 shares of the company’s stock, valued at approximately $108,722,071.90. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, major shareholder Trian Fund Management, L.P. sold 475,000 shares of the stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $19.90, for a total value of $9,452,500.00. Following the sale, the insider now directly owns 5,444,270 shares in the company, valued at $108,340,973. The disclosure for this sale can be found here. Corporate insiders own 20.90% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in WEN. Geode Capital Management LLC grew its position in Wendys by 6.3% in the 4th quarter. Geode Capital Management LLC now owns 1,917,851 shares of the restaurant operator’s stock valued at $29,937,000 after buying an additional 113,514 shares in the last quarter. Wedbush Securities Inc. bought a new position in shares of Wendys during the 1st quarter valued at about $213,000. Strs Ohio bought a new position in shares of Wendys during the 1st quarter valued at about $350,000. Mercer Global Advisors Inc. ADV bought a new position in shares of Wendys during the 1st quarter valued at about $243,000. Finally, BNP Paribas Arbitrage SA boosted its position in shares of Wendys by 1,649.4% during the 1st quarter. BNP Paribas Arbitrage SA now owns 54,897 shares of the restaurant operator’s stock valued at $982,000 after purchasing an additional 51,759 shares in the last quarter. 77.69% of the stock is currently owned by institutional investors.

About Wendys

The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide.

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Analyst Recommendations for Wendys (NASDAQ:WEN)

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