Goldman has recently initiated Wendy’s Co (WEN) stock to Sell rating, as announced on June 13, 2024, according to Finviz. Earlier, on April 12, 2024, Stephens had resumed the stock rating, setting a price target of $20. Bernstein also reduced Mkt Perform rating with a price target of $20. Additionally, JP Morgan reduced Neutral rating on February 21, 2024, with a target price of $19. Gordon Haskett analysts, in their report published on January 16, 2024, also reduced Hold rating for Wendy’s Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Wendy’s Co (WEN) Stock Trading Recap
On Monday, Wendy’s Co (WEN) stock saw a decline, ending the day at $18.79 which represents a decrease of $-0.75 or -3.84% from the prior close of $19.54. The stock opened at $19.6 and touched a low of $18.72 during the day, reaching a high of $19.61. The volume of shares traded was 6.02 million exceeding the average volume of 3.41 million.
WEN Stock Performance and Moving Averages
In recent trading, Wendy’s Co (WEN) stock price has shown some volatility, fluctuating -4.72% over the last five trades and 0.91% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 2.34%, and it has gained 9.95% in the previous three months. Currently, WEN is trading at -4.42%, 2.31%, and 4.18% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, WEN, a Consumer Cyclical sector stock, is trading -9.01% below its 52-week high but remains 20.33% above its 52-week low. The Average True Range (ATR) (14 days) of 0.58 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Wendy’s Co’s Profitability and Valuation Ratios
Wendy’s Co’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 16.17% and a profit margin of 8.76%, with a gross margin of 2.34%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Wendy’s Co’s market capitalization stands at $3.76 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 19.99, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.85. Additionally, the Price-to-Sales Ratio is 1.7, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 14.69, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 8.95% of Wendy’s Co (WEN)’s shares, while financial institutions hold 77.65%.
Notable insider trades include Mathews-Spradlin Mich J, Director at Wendy’s Co (WEN), who sold 24462 shares on Nov 07 ’24, at $20.28 each, totaling $0.50 million. On Nov 05 ’24, Esposito Liliana, Chf Corp Affrs & Sustnblty Ofc, sold 52009 shares for $19.63 each, amounting to $1.02 million. Additionally, on Aug 08 ’24, Peltz Matthew H. sold 1000000 shares at $17.18 each, generating $17.18 million.
