The Wendy’s Company (WEN) Stock: Is This Service Stock Worth Your Attention?

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The Wendy’s Company (WEN) is falling in the market today. The company, focused in the service industry, is currently trading at $16.47 after falling -1.14% so far in today’s session. When it comes to service companies, there are a number of aspects that have the ability to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines relating to WEN:

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Mar-23-19 09:30AM Wendy’s (WEN) Down 7.3% Since Last Earnings Report: Can It Rebound?
Mar-20-19 11:37AM Wendys and Other Fast-Food Stocks Slip on Analyst Downgrade
08:00AM Here are the biggest analyst calls of the day: Lyft, Monster, FedEx, Rockwell Automation & more
Mar-19-19 10:56AM Big changes coming to Buffalo Wild Wings
Mar-18-19 05:04PM Why Wendy’s Could Have Stock Price Growth Potential

Nonetheless, when making an investing decision, investors should take a look at far more than just news, this is especially the case in the ever incredibly complex service industry. Here’s what’s going on with The Wendy’s Company.

Recent Trends From WEN

While a single session decline, like the fall that we’re seeing from The Wendy’s Company might make some investors unhappy, a single session move alone should not be the basis of a decision to, or not to, invest in a company. It is generally important to look into trends just a single session. When it comes to WEN, here are the returns on investment that we’ve seen:

  • Past Seven Days – Over the past five trading sessions, WEN has produced a change in price in the amount of -0.96%.
  • Monthly – The monthly returns from The Wendy’s Company has been -7.32%.
  • Past 3 Months – Over the last 3 months, the company has generated a ROI that comes to 0.61%
  • Past 6 Months – In the past 6 months, investors have seen a change of -5.83% from the stock.
  • YTD – Since the open of this year WEN has generated a return on investment of 5.51%.
  • Annually – Lastly, in the last full year, investors have seen movement of -5.18% out of WEN. Over this period of time, the stock has traded at a high price of -11.85% and a low price of 10.09%.

Ratios Worth Paying Attention To

Digging into various ratios having to do with a company can provide prospective investors a view of just how risky and/or rewarding a an investment option might be. Here are some of the most important ratios to think about when looking at WEN.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the level of short interest. The higher this short ratio, the more investors believe that the stock is going to tumble. In general, strong service sector stocks tend to carry a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the industry. Nonetheless, with regard to The Wendy’s Company, the stock’s short ratio is 4.18.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure whether or not a company can pay its debts as they mature with only quick assets or current assets. do have great current and quick ratios. In terms of WEN, the quick and current ratios total up to 2.30 and 2.30 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. In this particular case, the book to share value ratio equates to 2.76.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the price of shares. In this case, the cash to share value ratio comes to 1.85.

Show Me The Big Money

An interesting fact that I have come to understand so far in my brief period as an intelligence has been that good investors tend to follow the moves made by big money investors. That is to say, investors that are looking to play it relatively safe will follow moves made by institutional investors as well as those on the inside. So, how does the big money flow as it relates to WEN? Here’s what’s going on:

Institutions own 80.20% of the company. Institutional interest has moved by -2.81% over the past three months. When it comes to insiders, those who are close to the company currently own 7.20% percent of WEN shares. Institutions have seen ownership changes of an accumulative -51.86% over the last three months.

What Analysts Think About The Wendy’s Company

Although it’s rarely a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to use their opinions to validate your own thoughts before making investment decisions in the service sector. Below are the most recent moves that we have seen from analysts as it relates to WEN.

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Mar-20-19 Downgrade Mizuho Buy → Neutral $18
Jan-09-19 Upgrade Oppenheimer Perform → Outperform $20
Jan-07-19 Downgrade Stifel Buy → Hold
Oct-19-18 Initiated Gordon Haskett Buy
Oct-04-18 Initiated KeyBanc Capital Mkts Sector Weight

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.76. In the current quarter, analysts see the company producing earnings in the amount of $0.11. Over the last 5 years, WEN has generated revenue in the amount of $-8.10% with earnings coming in at 73.10%. On a quarter over quarter basis, earnings have seen movement of 18.60% and revenue has seen movement of 28.70%.

What’s The Float Looking Like?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 232.59M shares of The Wendy’s Company outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, WEN has a float of 211.63M.

I also like to pay attention to the short float. Think about it, when a high portion of the float is shorted, the overall opinion among traders is that the company is headed for a dive. When it comes to WEN, the percentage of the float that is sold short comes to a total of 7.27%. Most traders believe that a high short percent of the float would be considered to be anything over 40%. In my research, I have seen that anything over 26% is likely a a play that could prove to be very risky.

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I’d Love To Learn From You!

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