BMO Capital Markets Forecasts Strong Price Appreciation for Wendy’s (NASDAQ:WEN) Stock

Wendy’s (NASDAQ:WEN) had its target price boosted by BMO Capital Markets from $19.00 to $20.00 in a research note published on Friday, Benzinga reports. BMO Capital Markets currently has a market perform rating on the restaurant operator’s stock.

Other analysts have also recently issued research reports about the company. Stephens restated an “equal weight” rating and issued a $19.00 price target on shares of Wendy’s in a report on Thursday. Citigroup lifted their price target on Wendy’s from $18.00 to $18.75 and gave the company a “neutral” rating in a report on Tuesday, October 8th. TD Cowen lifted their price target on Wendy’s from $17.00 to $19.00 and gave the company a “hold” rating in a report on Wednesday, October 16th. Wolfe Research upgraded Wendy’s to a “strong-buy” rating in a report on Friday, September 13th. Finally, Piper Sandler reduced their price objective on Wendy’s from $23.00 to $19.00 and set an “overweight” rating on the stock in a research note on Friday, August 2nd. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $20.36.

Wendy’s Price Performance

Wendy’s stock traded up $0.55 during midday trading on Friday, reaching $19.66. 4,384,974 shares of the company were exchanged, compared to its average volume of 3,521,588. The company has a market capitalization of $4.00 billion, a price-to-earnings ratio of 20.69, a P/E/G ratio of 2.78 and a beta of 0.80. The firm’s 50-day simple moving average is $18.03 and its 200-day simple moving average is $17.72. Wendy’s has a 1 year low of $15.61 and a 1 year high of $20.65. The company has a debt-to-equity ratio of 12.01, a quick ratio of 2.15 and a current ratio of 2.17.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings results on Thursday, October 31st. The restaurant operator reported $0.25 EPS for the quarter, meeting the consensus estimate of $0.25. The company had revenue of $566.70 million during the quarter, compared to analysts’ expectations of $560.50 million. Wendy’s had a return on equity of 67.74% and a net margin of 9.18%. The firm’s revenue was up 2.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.27 EPS. On average, analysts anticipate that Wendy’s will post 0.98 EPS for the current year.

Wendy’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 5.09%. The ex-dividend date of this dividend is Monday, December 2nd. Wendy’s’s payout ratio is 105.26%.

Insiders Place Their Bets

In related news, Director Matthew H. Peltz sold 1,000,000 shares of the stock in a transaction that occurred on Thursday, August 8th. The stock was sold at an average price of $17.18, for a total transaction of $17,180,000.00. Following the completion of the sale, the director now owns 14,943,466 shares in the company, valued at $256,728,745.88. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 17.10% of the company’s stock.

Hedge Funds Weigh In On Wendy’s

Hedge funds have recently modified their holdings of the stock. Strategic Investment Solutions Inc. IL bought a new position in shares of Wendy’s in the 2nd quarter worth $27,000. Salomon & Ludwin LLC raised its holdings in Wendy’s by 378.0% during the first quarter. Salomon & Ludwin LLC now owns 1,568 shares of the restaurant operator’s stock worth $30,000 after acquiring an additional 1,240 shares in the last quarter. Quarry LP bought a new stake in Wendy’s in the second quarter valued at approximately $30,000. International Assets Investment Management LLC bought a new stake in Wendy’s in the second quarter valued at approximately $33,000. Finally, Bessemer Group Inc. raised its stake in Wendy’s by 483.2% in the first quarter. Bessemer Group Inc. now owns 1,872 shares of the restaurant operator’s stock valued at $35,000 after buying an additional 1,551 shares during the period. 85.96% of the stock is owned by institutional investors and hedge funds.

Wendy’s Company Profile

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.