Stock Traders Buy High Volume of Call Options on Wendys (WEN)

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Wendys Co (NASDAQ:WEN) was the target of some unusual options trading activity on Tuesday. Investors bought 1,926 call options on the company. This is an increase of 1,238% compared to the typical daily volume of 144 call options.

Several hedge funds and other institutional investors have recently modified their holdings of the business. Oppenheimer & Co. Inc. boosted its position in shares of Wendys by 13.3% during the 2nd quarter. Oppenheimer & Co. Inc. now owns 26,408 shares of the restaurant operator’s stock worth $454,000 after purchasing an additional 3,100 shares in the last quarter. Arizona State Retirement System boosted its position in shares of Wendys by 2.6% during the 2nd quarter. Arizona State Retirement System now owns 124,560 shares of the restaurant operator’s stock worth $2,140,000 after purchasing an additional 3,118 shares in the last quarter. Xact Kapitalforvaltning AB boosted its position in shares of Wendys by 11.6% during the 3rd quarter. Xact Kapitalforvaltning AB now owns 30,857 shares of the restaurant operator’s stock worth $529,000 after purchasing an additional 3,200 shares in the last quarter. State Treasurer State of Michigan boosted its position in shares of Wendys by 4.8% during the 3rd quarter. State Treasurer State of Michigan now owns 69,243 shares of the restaurant operator’s stock worth $1,187,000 after purchasing an additional 3,200 shares in the last quarter. Finally, Amalgamated Bank boosted its position in shares of Wendys by 12.5% during the 2nd quarter. Amalgamated Bank now owns 45,852 shares of the restaurant operator’s stock worth $788,000 after purchasing an additional 5,111 shares in the last quarter. Institutional investors own 77.65% of the company’s stock.

A number of brokerages have recently commented on WEN. Argus lifted their target price on shares of Wendys from $19.00 to $21.00 and gave the company a “buy” rating in a report on Thursday, August 16th. Zacks Investment Research raised shares of Wendys from a “hold” rating to a “buy” rating and set a $20.00 target price on the stock in a report on Sunday, July 15th. Mizuho set a $21.00 target price on shares of Wendys and gave the company a “buy” rating in a report on Thursday, August 16th. BTIG Research started coverage on shares of Wendys in a research note on Tuesday, September 25th. They issued a “buy” rating and a $20.00 price objective on the stock. Finally, BidaskClub cut shares of Wendys from a “buy” rating to a “hold” rating in a research note on Tuesday, July 24th. Ten equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. Wendys currently has an average rating of “Buy” and an average price target of $18.93.

Shares of WEN opened at $17.08 on Wednesday. The company has a debt-to-equity ratio of 6.44, a quick ratio of 1.70 and a current ratio of 1.71. The firm has a market capitalization of $4.03 billion, a price-to-earnings ratio of 39.72, a PEG ratio of 1.41 and a beta of 0.53. Wendys has a 1 year low of $13.57 and a 1 year high of $18.68.

Wendys (NASDAQ:WEN) last issued its earnings results on Tuesday, November 6th. The restaurant operator reported $0.17 EPS for the quarter, topping the consensus estimate of $0.15 by $0.02. The company had revenue of $400.55 million for the quarter, compared to analyst estimates of $405.54 million. Wendys had a net margin of 15.87% and a return on equity of 23.08%. The business’s revenue was up 30.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.09 EPS. As a group, equities research analysts expect that Wendys will post 0.56 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Monday, December 17th. Shareholders of record on Monday, December 3rd will be given a dividend of $0.085 per share. The ex-dividend date is Friday, November 30th. This represents a $0.34 annualized dividend and a dividend yield of 1.99%. Wendys’s payout ratio is currently 79.07%.

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About Wendys

The Wendy's Company, through its subsidiaries, operates as a quick-service restaurant company. It is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. The company's restaurants offer a range of chicken breast sandwiches, chicken nuggets, chili, French fries, baked potatoes, salads, soft drinks, desserts, and kids' meals.

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