Recent trading patterns in the stock of The Wendy’s Company (NASDAQ:WEN) have investors on high alert. Traders use price and volume data to predict performance and time their positions. In the case of WEN, the data could have some important implications for future performance. In the most recent quarter, institutional ownership increased by a net of 10.95 million shares, or 5.42%.This is a bullish sign and indicates that institutions are feeling more optimistic about the outlook for WEN overall.135 holders increased their positions, 132 decreased their positions, and 45 holders held their positions.
Among institutions that increased their positions, 39 were new positions. Among holders that decreased their positions, 34 sold out of the stock The Wendy’s Company. Insider ownership during the latest quarter decreased by a net of 1535 shares, indicating that WEN’s key executives are feeling more bearish about the stock than they did three months ago. 4 or 66.67% of the trades during the past quarter were buys, and 2 or 33.33% were sells. This activity represents a continuation of a theme over the past twelve months. Insider ownership during the last year has decreased by a net of 12.18 million shares. 69.01% of insider trades in the last 12 months were buys, and 30.99% were sells.
Over the past year, the price of The Wendy’s Company (WEN) has increased 47.08% while the S&P 500 has increased 19.49%. During the past 20 days, WEN has increased 3.10% while the broad market has increased 1.94%. WEN ‘s 20-day moving average currently sits above its 100-day moving average. This is a bullish signal that suggests the stock price might continue to rise. WEN’s average trading volume during the past 20 days is lower than the average volume over the past 100 days, which could be an indication that investors are feeling less certain than usual about the direction of WEN’s future price movements.
The Wendy’s Company (NASDAQ:WEN) has a 20-day RSI of 54.27%. According to this momentum indicator, a reading between 30 and 70 suggests the stock is not especially cheap or expensive, and not on the brink of a trend reversal. The MACD tells a different story. WEN’s 9-day MACD currently sits below the 20-day MACD, indicating that WEN’s upside momentum has decreased during the last three weeks. This suggests that the trend might soon reverse. WEN’s average trading volatility during the past few weeks is 1.94% higher than the average volatility over the past 100 days. This means that the stock’s daily price swings have been more extreme in recent times compared to the past.
Analysts expect The Wendy’s Company (WEN) to generate earnings per share of $0.46 in 2017. This works out to an increase of 15.00% compared to last year’s earnings. For comparison’s sake, analysts expect the S&P 500 to grow earnings by an average of 12% in 2017. The average investment rating for WEN on a scale of 1 to 5 (1 being a strong sell and 5 being a strong buy) is a 4.08 or a Moderate Buy. Three months ago, analysts assigned WEN a 3.86 rating, which implies that analysts have become more optimistic about the outlook for the stock over the next year.