Wendy’s Target of Unusually Large Options Trading (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of some unusual options trading on Monday. Traders bought 144,193 put options on the company. This is an increase of 289% compared to the average volume of 37,088 put options.

Institutional Trading of Wendy’s

Several hedge funds have recently made changes to their positions in the business. Hilton Head Capital Partners LLC bought a new position in shares of Wendy’s in the 4th quarter valued at about $30,000. Cassaday & Co Wealth Management LLC bought a new stake in Wendy’s during the first quarter worth approximately $30,000. Fifth Third Bancorp increased its stake in Wendy’s by 161.0% during the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator’s stock worth $32,000 after acquiring an additional 2,362 shares during the last quarter. SJS Investment Consulting Inc. purchased a new stake in Wendy’s during the first quarter valued at approximately $32,000. Finally, Gen Wealth Partners Inc purchased a new stake in Wendy’s during the fourth quarter valued at approximately $33,000. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on WEN. Wall Street Zen upgraded Wendy’s from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. BMO Capital Markets reissued a “market perform” rating on shares of Wendy’s in a research note on Wednesday, June 10th. Mizuho set a $6.00 target price on Wendy’s in a research note on Friday, May 1st. Stifel Nicolaus set a $6.00 price target on Wendy’s in a report on Thursday, April 30th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Wendy’s in a research note on Monday, April 20th. Five investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have issued a Sell rating to the company. According to MarketBeat.com, Wendy’s currently has a consensus rating of “Reduce” and an average price target of $8.56.

Wendy’s Price Performance

Shares of NASDAQ WEN traded down $0.05 during midday trading on Monday, reaching $7.50. 12,589,087 shares of the stock traded hands, compared to its average volume of 13,010,618. The company has a debt-to-equity ratio of 29.25, a current ratio of 1.83 and a quick ratio of 1.81. The stock has a market capitalization of $1.43 billion, a PE ratio of 9.62, a P/E/G ratio of 0.55 and a beta of 0.36. Wendy’s has a one year low of $6.07 and a one year high of $12.00. The company’s 50 day moving average is $7.40 and its 200 day moving average is $7.52.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.02. Wendy’s had a net margin of 6.77% and a return on equity of 136.46%. The company had revenue of $432.30 million for the quarter, compared to analysts’ expectations of $518.03 million. During the same quarter in the previous year, the business posted $0.20 earnings per share. Wendy’s’s quarterly revenue was up 3.3% on a year-over-year basis. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. On average, equities research analysts anticipate that Wendy’s will post 0.58 earnings per share for the current year.

Wendy’s Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 7.5%. The ex-dividend date of this dividend was Monday, June 1st. Wendy’s’s dividend payout ratio (DPR) is presently 71.79%.

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.