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

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

Wendy’s Trading Up 1.3%

Shares of NASDAQ:WEN traded up $0.10 during trading on Monday, reaching $7.19. The company’s stock had a trading volume of 1,943,650 shares, compared to its average volume of 8,785,108. The stock has a market capitalization of $1.37 billion, a PE ratio of 8.46, a price-to-earnings-growth ratio of 1.99 and a beta of 0.38. Wendy’s has a 12 month low of $6.73 and a 12 month high of $15.40. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77. The firm’s 50 day simple moving average is $7.73 and its two-hundred day simple moving average is $8.42.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings data on Friday, February 13th. The restaurant operator reported $0.16 earnings per share 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 analysts’ expectations of $537.11 million. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The firm’s revenue for the quarter was down 5.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.25 earnings per share. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. On average, research analysts predict that Wendy’s will post 0.99 EPS for the current fiscal year.

Wendy’s Announces Dividend

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Elevation Point Wealth Partners LLC purchased a new stake in shares of Wendy’s in the second quarter valued at $25,000. Investors Research Corp purchased a new position in shares of Wendy’s during the 3rd quarter worth about $27,000. Versant Capital Management Inc grew its holdings in Wendy’s by 19,693.8% during the 3rd quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock valued at $29,000 after purchasing an additional 3,151 shares during the last quarter. MassMutual Private Wealth & Trust FSB raised its position in Wendy’s by 205.0% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator’s stock worth $30,000 after purchasing an additional 2,189 shares during the period. Finally, Hilton Head Capital Partners LLC purchased a new stake in Wendy’s in the 4th quarter worth about $30,000. 85.96% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on WEN. Barclays reduced their target price on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a report on Tuesday, February 17th. Wall Street Zen cut Wendy’s from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. Stifel Nicolaus set a $8.00 price objective on Wendy’s in a research note on Monday, February 16th. Evercore set a $8.00 price objective on Wendy’s in a report on Tuesday, February 17th. Finally, BMO Capital Markets lowered their target price on Wendy’s from $11.00 to $9.00 and set a “market perform” rating for the company in a research report on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fifteen have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Wendy’s currently has a consensus rating of “Hold” and a consensus target price of $9.00.

About Wendy’s

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.