Traders Purchase Large Volume of Wendy’s Put Options (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the recipient of some unusual options trading on Monday. Stock traders bought 75,750 put options on the company. This is an increase of approximately 472% compared to the average volume of 13,237 put options.

Wendy’s Trading Up 1.3%

Shares of NASDAQ WEN traded up $0.10 during trading hours on Monday, reaching $7.19. The stock had a trading volume of 1,943,650 shares, compared to its average volume of 8,785,108. Wendy’s has a 52-week low of $6.73 and a 52-week high of $15.40. The firm has a market cap of $1.37 billion, a price-to-earnings ratio of 8.46, a P/E/G ratio of 1.99 and a beta of 0.38. The business’s fifty day moving average price is $7.73 and its two-hundred day moving average price is $8.42. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings data on Friday, February 13th. The restaurant operator reported $0.16 EPS for the quarter, topping the consensus estimate of $0.14 by $0.02. The company had revenue of $439.60 million for the quarter, compared to the consensus estimate of $537.11 million. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.Wendy’s’s quarterly revenue was down 5.5% on a year-over-year basis. During the same period last year, the business posted $0.25 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts expect that Wendy’s will post 0.99 EPS for the current fiscal year.

Wendy’s Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were paid a dividend of $0.14 per share. The ex-dividend date was Monday, March 2nd. This represents a $0.56 annualized dividend and a dividend yield of 7.8%. Wendy’s’s dividend payout ratio (DPR) is currently 65.88%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. UBS Group decreased their price target on Wendy’s from $8.50 to $7.50 and set a “neutral” rating for the company in a research note on Tuesday, February 17th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Wendy’s in a research report on Wednesday, January 21st. Morgan Stanley reiterated an “underweight” rating and issued a $7.00 target price on shares of Wendy’s in a research note on Monday, February 16th. The Goldman Sachs Group lowered their target price on shares of Wendy’s from $8.00 to $7.00 and set a “sell” rating for the company in a research note on Tuesday, February 17th. Finally, Truist Financial cut their price target on shares of Wendy’s from $11.00 to $10.00 and set a “buy” rating on the stock in a report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fifteen have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, Wendy’s currently has an average rating of “Hold” and an average price target of $9.00.

Institutional Trading of Wendy’s

Hedge funds have recently added to or reduced their stakes in the business. Rockefeller Capital Management L.P. grew its holdings in Wendy’s by 23.4% during the 4th quarter. Rockefeller Capital Management L.P. now owns 10,580 shares of the restaurant operator’s stock worth $88,000 after acquiring an additional 2,007 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of Wendy’s by 33.6% in the 4th quarter. Corient Private Wealth LLC now owns 70,927 shares of the restaurant operator’s stock valued at $591,000 after purchasing an additional 17,831 shares in the last quarter. Alpine Global Management LLC bought a new stake in shares of Wendy’s in the 4th quarter valued at about $180,000. Kera Capital Partners Inc. purchased a new stake in shares of Wendy’s in the 4th quarter worth approximately $92,000. Finally, Virtu Financial LLC purchased a new stake in shares of Wendy’s in the 4th quarter worth approximately $314,000. 85.96% of the stock is owned by hedge funds and other institutional investors.

Wendy’s Company Profile

The Wendy’s Company (NASDAQ:WEN) operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company’s menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy’s has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.

Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy’s expanded rapidly through both company-owned and franchised outlets.