Wendys Story

<div class='circular--portrait' style='background:#8B008B;color: #ffffff;font-size:3em;'>WEN</div>
WEN -- USA Stock  

USD 21.25  0.14  0.66%

Today we will outline Wendys. We will analyze why Wendys investors may still consider a stake in the business. On the 5th of August the company is traded for 22.39. Wendys Company has historical hype elasticity of 0.04. The average price elasticity to hype of competition is about -0.31. The entity is anticipated to increase in value after the next headline, with the price going to jump to 22.43. The latest volatility of media hype impact on Wendys stock price is is way over 100 percent making price predictions on social media along less reliable. The price upswing on the next news is estimated to be 0.18%, whereas the daily expected return is at this time at 0.26%. The volatility of related hype on Wendys is about 191.89% with expected price after next announcement by competition of 22.08 Considering the 30-days investment horizon, the next anticipated press release will be in about 10 days.
Published over a month ago
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Is Wendys (NASDAQ:WEN) gaining more confidence from institutional investors?
Our trade advice module complements current analysts and expert consensus on Wendys Company. It analyzes the entity potential to grow using all fundamental, technical, and market related data available at the time. Earning per share calculations of Wendys is based on official Zacks consensus of 10 analysts regarding Wendys' future annual earnings. Given the historical accuracy of 77.95%, the future earnings per share of the company is estimated to be 0.5314 with the lowest and highest values of 0.4 and 0.61, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
The successful prediction of Wendys stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Wendys Company, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Wendys based on Wendys hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Wendys's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Wendys's related companies.

Use Technical Analysis to project Wendys expected Price

Wendys technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Wendys technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Wendys trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Wendys, but it might be worth checking our own buy vs. sell analysis

Payment of 468 shares by Kurt Kane of Wendys subject to Rule 16b-3

Legal trades by Wendys insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Wendys insider trading alert for payment of common stock by Kurt Kane, Pres US & Chf Commercial Ofc, on 6th of September 2020. This event was filed by Wendys Co with SEC on 2020-08-13. Statement of changes in beneficial ownership - SEC Form 4. Kurt Kane currently serves as chief concept and marketing officer of Wendys Company [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

The latest bullish price patterns experienced by current Wendys Company shareholders may raise some interest from institutional investors as it closed today at a share price of 22.06 on 6,069,593 in trading volume. The company directors and management have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.27. The current volatility is consistent with the ongoing market swings in July 2020 as well as with Wendys Company unsystematic, company-specific events.
 2012 2016 2019 2020 (projected)
Interest Expense86.07 M114.09 M102.68 M84.47 M
Gross Profit686.22 M350.79 M315.71 M343.92 M

Deferred Revenue Breakdown

Wendys Deferred Revenue yearly trend continues to be quite stable with very little volatility. Deferred Revenue may rise above about 10.9 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Wendys Deferred Revenue is quite stable at the moment as compared to the past year. The company's current value of Deferred Revenue is estimated at 10.86 Million
2010
2011
2019
2020
201011.46 Million
201111.56 Million
201910.41 Million
202010.86 Million

Wendys to turn the corner in September

Latest Information Ratio is up to 0.06. Price may slide again. Wendys Company currently demonstrates below-verage downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.34. However, we do advice investors to further question Wendys Company expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Wendys Investment

Whereas some companies in the restaurants industry are either recovering or due for a correction, Wendys may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 5th of August 2020, our research shows that Wendys is a rather very steady investment opportunity with a below average odds of financial turmoil in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our actual 30 days buy-sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Wendys Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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