Shares of The Wendy’s Company (NASDAQ:WEN) recorded -1.23% loss during trading session on February 20th, 2019. The script traded as low as $17.615 and last traded at $17.67. 7.04 million shares changed exchanged hands during trading, a drop of -111.42% from the 30-day average session volume of 3.33M shares. The firm had previously closed at $17.89. The company has $235.46M outstanding shares, a price-to-earnings ratio of 9.42, price-to-earnings-growth ratio of 2.77and a beta of 0.77. The company has a RSI of 58.47, ATR of 0.30 and a volatility of 1.64% this week. WEN has a 52 week low price of $14.96 and a 52 week high price of $18.68.
Investors have identified the tech 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 4.16B, 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 664.63 million on their books with 24.06 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 0 total, with 47.04 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
WEN were able to record 189.95 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 467.96 million. In cash movements, the company had a total of 229.66 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 third quarter of the year, The Wendy’s Company recorded a total of 400.55 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.23% coming in sequential stages and their sales for the third quarter reducing by -0.03%.
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 144.7 million trying to sell their products during the last quarter, with the result yielding a gross income of 255.85 million. This allows shareholders to hold on to 235.46M with the revenue now reading 1650 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.12 cents a share).
Is the stock of WEN attractive?
Having a look at the company’s valuation, the company is expected to record 0.66 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.
In related news, EVP, COO & International Wright Robert D. sold 28,300 shares of the company’s stock in a transaction that recorded on November 21st, 2019. The sale was performed at an average price of 17.78, for a total value of 503,182. As the sale deal closes, the Director Wright Robert D. now sold 916,292 shares of the company’s stock, valued at 14,989,987. Also, 10% Owner TRIAN FUND MANAGEMENT, L.P. sold 916,292 shares of the company’s stock in a deal that was recorded on May 16th, 2019. The shares were sold at an average price of 16.36 per share, with a total market value of 31,630,629. Following this completion of acquisition, the Director now holds 916,292 shares of the company’s stock, valued at 14,989,987. In the last 6 months, insiders have changed their ownership in shares of company stock by 6.70%.
7 out of 23 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on The Wendy’s Company stock. 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 $19.23.