Taking a Fresh Look at The Wendy’s Company (WEN)

The Wendy’s Company (WEN) is an interesting player in the Services space, with a focus on Restaurants. The stock has been active on the tape, currently trading at $14.34, down from yesterday’s close by -1.10%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. The Wendy’s Company (WEN) currently trades with a market capitalization of $3.54 Billion. That value represents a market adjusting for revenues that have been falling by -15.39 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For WEN, the company currently has $278.83 Million of cash on the books, which is offset by $29.36 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $132.1 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.11 on a per share basis this quarter. Perhaps, that suggests something about why 82.24% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, The Wendy’s Company recorded a 52-week high of $16.66. It is now trading 2.32% off that level. The stock is trading $15.17 its 50-day moving average by 0.83%. The stock carved out a 52-week low down at $11.20.

In recent action, The Wendy’s Company (WEN) has made a move of -7.60% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.32, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 7.87% with $226.91 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of WEN.

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