WEN stock: buy or sell?
December 6th, 2019
The Wendy's Company, through its subsidiaries, operates as a quick-service restaurant company worldwide. It is involved in operating, developing, and franchising a system of quick-service restaurants.
Should I buy WEN stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Wendy's stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Wendy's stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 15 ratings published for WEN stock in the last 30 days.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-10||Wells Fargo & Co||n/a||Market Perform|
|2019-7-29||Goldman Sachs Group||n/a||Sell|
|2019-6-28||JPMorgan Chase & Co.||n/a||Overweight|
|2019-6-25||Credit Suisse Group||n/a||Neutral|
|2019-5-13||Piper Jaffray Companies||n/a||Overweight|
WEN stock analysis
Wendy's closed on December 6th at $21.56 and remained constant a slightly fine 0.28%.
Wendy's shares remained steady 0.28% to $21.56 on Dec 6th. WEN is retaking the upward trend marking a new rising bottom heading to break out over $22.08. On August WEN price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On September, WEN hit a new all time high, pushing higher than on September tops. Check different trading setups that use ATHs as triggers.
Shares of Wendy's stepped up a tiny 0.56% this week. With this, it's been 3 climbing weeks in a row, soaring a 5.21%.
From a weekly outlook, WEN marked an uptrend of rising tops and rising bottoms. Since its last top late October at $21.81, price slid and bounced up back from $20.21. Breaking down under $20.21 would cancel the current uptrend and it might test lower supports. Note that $21.81 might act as a resistance line. Not so far away is the last price record Wendy's marked early September. Late April, SMA20w and SMA40w crossed up triggering a rise of 16.73%. Late March WEN price bounced up over the SMA of 40 weeks that acted as support stopping new slides.
WEN stock price history
WEN IPO was on May 7th, 1980 at $0.00 per share1. Since then, WEN stock grew a inf%, with a yearly average of inf%. If you had invested right after WEN's IPO a $1,000 in WEN stock in 1980, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits.
WEN stock historical price chart
WEN stock reached all-time highs on September with a price of $22.71.
WEN stock price target is $20.20How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' WEN stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 11 price forecasts for Wendy's stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-10||Wells Fargo & Co||Raises Target||$19.00||$20.00||5.3%|
|2019-9-10||SunTrust Banks||Raises Target||$22.00||$24.00||9.1%|
|2019-7-29||Goldman Sachs Group||Initiates||n/a||$17.50||-|
|2019-6-28||JPMorgan Chase & Co.||Raises Target||$20.00||$21.00||5%|
|2019-6-25||Credit Suisse Group||Initiates||n/a||$20.00||-|
|2019-5-13||Piper Jaffray Companies||Initiates||n/a||$22.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince May, when Wendy's published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will update this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Wendy's annual turnover boosted a dazzling 29.96% to $1,589.94 M USD from $1,223.41 marked in 2017. In the same way, its earnings margin (compared to sales) rocketed to 28.94%, that is $460.12 million. Wendy's fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Wendy's TTM sales up to were $1,209.37 and earnings $439.96 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Wendy's business evolution since December 2018: Annual revenues up to , compared to lastest yearly report, plummed a dreadful -23.94%. Regarding profit margin, Wendy's escalated 7.44% to 28.94%
|2013||$2,490 M||-||$46 M1.8%||-|
|2014||$2,061 M||-17.23%||$121 M5.9%||165.43%|
|2015||$1,870 M||-9.26%||$161 M8.6%||32.70%|
|2016||$1,435 M||-23.25%||$130 M9.0%||-19.56%|
|2017||$1,223 M||-14.77%||$194 M15.9%||49.69%|
|2018||$1,590 M||29.96%||$460 M28.9%||137.14%|
|TTM||$1,209 M||-23.94%||$440 M36.4%||-4.38%|
Quarterly financial resultsWendy's posted million in revenues for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter income marked million with a profit margin of . Profit margin stayed stable a 0.00% compared to previous quarter when profit margin was 4.73%. When comparing revenues to same quarter last year, Wendy's sales marked a spooky slide and plunged a -100.00%. Looking back to recent quarterly results, Wendy's posted 3 negative quarters in a row.
|2017-Q1||$286 M||-||$22 M7.8%||-|
|2017-Q2||$320 M||12.08%||$-2 M-0.6%||-108.28%|
|2017-Q3||$308 M||-3.85%||$14 M4.6%||-870.65%|
|2017-Q4||$309 M||0.40%||$159 M51.5%||1,017.18%|
|2018-Q1||$381 M||23.06%||$20 M5.3%||-87.34%|
|2018-Q2||$411 M||8.00%||$30 M7.3%||48.20%|
|2018-Q3||$401 M||-2.54%||$391 M97.7%||1,209.58%|
|2018-Q4||$398 M||-0.68%||$19 M4.7%||-95.19%|
Wendy's ownershipWhen you are planning to buy a stock, it's always worth to have a look its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Wendy's, 8.08% of all outstanding shares are owned by its staff.
In case of Wendy's stock, 78.91% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for WEN stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Wendy's:
|Market cap||$4.9 B||$893.3 M||$6.3 B||$11.7 B||$19.6 M|
|Total shares||226.0 M||124.1 M||82.8 M||40.9 M||12.5 M|
|Float shares||182.4 M||118.5 M||82.5 M||38.4 M||10.1 M|
|- Institutional holdings (%)||78.9%||65.8%||94.7%||95.7%||32.1%|
|- Insider holdings (%)||8.1%||5.6%||0.4%||0.6%||6.8%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, December 6th, 2019|
|Day range||$21.38 - $21.77|
|Average true range||$0.45|
|50d mov avg||$20.81|
|100d mov avg||$20.35|
|200d mov avg||$19.26|
Wendy's performanceTo better understand Wendy's performance you must becnhmark its gains with other related stocks in same sector or industry. We chose Arcos Dorados, Dunkin' Brands, Domino's Pizza, Good Times Restaurants, Jack In The Box, McDonald's, Rave Restaurant, Carrols Restaurant and Yum! Brands as the bechmarking frame for Wendy's stock.
|GTIMGood Times Restau...||-12.36%||-17.89%||-61.10%|
|JACKJack In The Box||-9.23%||-7.11%||-2.37%|