Wendy’s (NASDAQ:WEN) Stock Price Down 4.3% – Should You Sell?

The Wendy’s Company (NASDAQ:WEN)’s share price dropped 4.3% during mid-day trading on Wednesday . The company traded as low as $7.19 and last traded at $7.19. Approximately 5,237,793 shares were traded during mid-day trading, a decline of 40% from the average daily volume of 8,699,009 shares. The stock had previously closed at $7.51.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on WEN shares. Stephens lowered their price objective on shares of Wendy’s from $9.00 to $8.00 and set an “equal weight” rating for the company in a research report on Friday, February 13th. Royal Bank Of Canada decreased their price target on shares of Wendy’s from $8.50 to $8.00 and set a “sector perform” rating on the stock in a research note on Tuesday, February 17th. BMO Capital Markets dropped their price objective on shares of 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. Evercore set a $8.00 price objective on Wendy’s in a report on Tuesday, February 17th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Wendy’s in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, Wendy’s currently has an average rating of “Hold” and an average price target of $9.30.

Wendy’s Stock Down 4.0%

The business has a fifty day moving average of $8.04 and a 200 day moving average of $8.72. The company has a quick ratio of 1.74, a current ratio of 1.76 and a debt-to-equity ratio of 28.77. The firm has a market cap of $1.37 billion, a P/E ratio of 8.48, a P/E/G ratio of 2.09 and a beta of 0.38.

Wendy’s (NASDAQ:WEN) last posted its earnings results on Friday, February 13th. The restaurant operator reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.02. The company had revenue of $439.60 million during the quarter, compared to analyst estimates of $537.11 million. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The company’s revenue for the quarter was down 5.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.25 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. On average, equities research analysts predict that The Wendy’s Company will post 0.99 EPS for the current year.

Wendy’s Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 7.8%. The ex-dividend date of this dividend is Monday, March 2nd. Wendy’s’s dividend payout ratio is presently 65.88%.

Hedge Funds Weigh In On Wendy’s

Several institutional investors and hedge funds have recently made changes to their positions in WEN. Blueshift Asset Management LLC acquired a new position in shares of Wendy’s in the second quarter valued at $2,428,000. Intech Investment Management LLC boosted its holdings in shares of Wendy’s by 81.2% during the 2nd quarter. Intech Investment Management LLC now owns 348,245 shares of the restaurant operator’s stock worth $3,977,000 after buying an additional 156,068 shares during the period. Norges Bank acquired a new position in Wendy’s in the 2nd quarter valued at about $18,929,000. Alps Advisors Inc. raised its holdings in Wendy’s by 71.7% in the 3rd quarter. Alps Advisors Inc. now owns 634,304 shares of the restaurant operator’s stock valued at $5,810,000 after acquiring an additional 264,905 shares during the period. Finally, Public Sector Pension Investment Board bought a new position in Wendy’s in the 3rd quarter valued at about $5,651,000. Institutional investors and hedge funds own 85.96% of the company’s stock.

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.