The Wendy’s Company (NASDAQ:WEN) shares fell to a low of $22.85 before closing at $23.22. Intraday shares traded counted 1.69 million, which was 48.75% higher than its 30-day average trading volume of 3.29M. WEN’s previous close was $23.02 while the outstanding shares total 223.33M. The firm has a beta of 0.95, a 12-month trailing P/E ratio of 36.51, and a growth ratio of 1.97. The stock’s Relative Strength Index (RSI) is 55.23, with weekly volatility at 2.12% and ATR at 0.51. The WEN stock’s 52-week price range has touched low of $18.86 and a $24.91 high. The stock traded higher over the last trading session, gaining 0.87% on 05/28/21.
Investors have identified the Restaurants company The Wendy’s Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.10 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Wendy’s Company (WEN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For WEN, the company has in raw cash 354.44 million on their books with 31.25 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 641.5 million total, with 396.52 million as their total liabilities.
WEN were able to record 75.47 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by -10.09 million. In cash movements, the company had a total of 85.83 million as operating cash flow.
Potential earnings growth for The Wendy’s Company (WEN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, The Wendy’s Company recorded a total of 460.2 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 12.0% coming in sequential stages and their sales for the 08/11/2021 quarter reducing by -3.07%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 164.54 million trying to sell their products during the last quarter, with the result yielding a gross income of 295.67 million. This allows shareholders to hold on to 223.33M with the recently reported earning now reading 0.19 cents per share. This is a figure that compared to analyst’s prediction for their 08/11/2021 (0.20 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.84 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on WEN sounds very interesting.
Is the stock of WEN attractive?
In related news, Chief Legal Ofcr & Secretary, Wunsch E.J. bought 7,500 shares of the company’s stock in a transaction that recorded on Mar 05. The purchase was performed at an average price of 18.98, for a total value of 142,322. As the purchase deal closes, the Pres Intl & Chf Developmnt Ofc, Pringle Abigail E. now sold 184,823 shares of the company’s stock, valued at 4,064,184. Also, President & CEO, Penegor Todd Allan sold 130,676 shares of the company’s stock in a deal that was recorded on Nov 10. The shares were cost at an average price of 22.40 per share, with a total market value of 2,926,973. Following this completion of disposal, the President & CEO, Penegor Todd Allan now holds 133,129 shares of the company’s stock, valued at 3,001,913. In the last 6 months, insiders have changed their ownership in shares of company stock by 7.70%.
16 out of 27 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on The Wendy’s Company. 0 analysts has assigned a Sell rating on the WEN stock. The 12-month mean consensus price target for the company’s shares has been set at $25.98.