Zacks Investment Research upgraded shares of Denny’s (NASDAQ:DENN) from a hold rating to a buy rating in a research report released on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $24.00 price objective on the restaurant operator’s stock.
According to Zacks, “Denny’s Corp., formerly Advantica Restaurant Group, Inc., is one of the largest restaurant companies, operating moderately-priced restaurants: Denny’s, Hardee’s, Quincy’s, El Pollo Loco, Coco’s and Carrows. The company believes its restaurants benefit from the diversity of the restaurant concepts, the generally strong market positions and consumer recognition enjoyed by these chains, the benefits of a centralized support system for purchasing, menu development, human resources, management information systems, site selection, restaurant design and construction. “
A number of other research firms have also weighed in on DENN. Wedbush set a $25.00 price objective on Denny’s and gave the company a buy rating in a research note on Friday, August 16th. Maxim Group set a $21.00 price objective on Denny’s and gave the company a hold rating in a research note on Wednesday, July 31st. ValuEngine lowered Denny’s from a buy rating to a hold rating in a research note on Wednesday, October 2nd. Oppenheimer started coverage on Denny’s in a research note on Thursday, September 19th. They set an outperform rating and a $27.00 price objective for the company. Finally, MKM Partners started coverage on Denny’s in a research note on Thursday, September 26th. They issued a neutral rating and a $25.00 price target for the company. One investment analyst has rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company. The stock presently has an average rating of Hold and a consensus price target of $23.17.
Denny’s (NASDAQ:DENN) last released its quarterly earnings data on Tuesday, July 30th. The restaurant operator reported $0.23 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.17 by $0.06. The business had revenue of $151.90 million during the quarter, compared to analyst estimates of $148.85 million. Denny’s had a negative return on equity of 34.91% and a net margin of 11.60%. The company’s revenue was down 3.5% on a year-over-year basis. During the same quarter last year, the business posted $0.18 EPS. As a group, equities analysts expect that Denny’s will post 0.66 earnings per share for the current fiscal year.
In related news, CFO F Mark Wolfinger sold 10,000 shares of Denny’s stock in a transaction dated Friday, August 30th. The stock was sold at an average price of $23.57, for a total value of $235,700.00. Following the completion of the transaction, the chief financial officer now owns 785,980 shares in the company, valued at approximately $18,525,548.60. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Robert P. Verostek sold 4,500 shares of Denny’s stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $23.57, for a total value of $106,065.00. Following the completion of the transaction, the senior vice president now owns 3,500 shares of the company’s stock, valued at approximately $82,495. The disclosure for this sale can be found here. In the last 90 days, insiders sold 194,146 shares of company stock valued at $4,521,833. 6.10% of the stock is owned by company insiders.
Several institutional investors have recently made changes to their positions in the stock. Envestnet Asset Management Inc. increased its stake in shares of Denny’s by 13.3% in the 3rd quarter. Envestnet Asset Management Inc. now owns 62,188 shares of the restaurant operator’s stock valued at $1,416,000 after purchasing an additional 7,299 shares in the last quarter. Assenagon Asset Management S.A. increased its stake in Denny’s by 250.0% during the 3rd quarter. Assenagon Asset Management S.A. now owns 93,326 shares of the restaurant operator’s stock worth $2,125,000 after buying an additional 66,665 shares in the last quarter. Hancock Whitney Corp increased its stake in Denny’s by 2.3% during the 2nd quarter. Hancock Whitney Corp now owns 46,595 shares of the restaurant operator’s stock worth $957,000 after buying an additional 1,045 shares in the last quarter. Susquehanna International Group LLP purchased a new stake in Denny’s during the 2nd quarter worth approximately $1,292,000. Finally, Voloridge Investment Management LLC purchased a new stake in Denny’s during the 2nd quarter worth approximately $415,000. Hedge funds and other institutional investors own 90.15% of the company’s stock.
Denny's Corporation, through its subsidiary, Denny's, Inc, owns and operates full-service restaurant chains under the Denny's brand. As of December 26, 2018, it operated 1,709 franchised, licensed, and company restaurants, including 1,578 restaurants in the United States; and 131 in Canada, Puerto Rico, Mexico, New Zealand, the Philippines, Honduras, Costa Rica, the United Arab Emirates, Guam, the United Kingdom, El Salvador, and Guatemala.
See Also: Leveraged Buyout (LBO)
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