Drilling Down Into 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 $16.42, down from yesterday’s close by -0.67%. 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

The Wendy’s Company (WEN) currently trades with a market capitalization of $4.00 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.

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 9.64% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, The Wendy’s Company recorded a 52-week high of $16.98. It is now trading 0.56% off that level. The stock is trading $15.11 its 50-day moving average by -1.31%. The stock carved out a 52-week low down at $13.03.

In recent action, The Wendy’s Company (WEN) has made a move of +10.28% 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 19.03, 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 10.58% with $224.32 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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