The Wendy’s Co. (WEN): From Top to Bottom

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 $17.72, up from yesterday’s close by 3.93%. 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 $4.02 Billion. That value represents a market adjusting for revenues that have been growing by 33.15 % 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 $186.9 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.16 on a per share basis this quarter. Perhaps, that suggests something about why 10.03% of the outstanding share supply is held by institutional investors.



Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, The Wendy’s Company recorded a 52-week high of $17.75. It is now trading 0.030000000000001% off that level. The stock is trading $16.84 its 50-day moving average by -0.88%. The stock carved out a 52-week low down at $13.57.

In recent action, The Wendy’s Company (WEN) has made a move of +6.62% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.04, 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 9.64% with $220.96 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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