Reviewing The Case For Denny’s Corporation (DENN) Going Higher


Wells Capital Management, Inc. recently announced the acquisition of new stake in Denny’s Corporation (NASDAQ:DENN). The institutional investor has increased its shareholding in the Consumer Cyclical company by 3.21% to 5.77 million shares with purchase of 0.18 million shares. This fresh investment now brings its stake to 9.05% valued currently at $51.24 million. In addition, Brown Advisory LLC raised its holdings by 82705.0 to 1.47 million shares.

With over 2.55 million Denny’s Corporation (DENN) shares trading Friday and a closing price of $11.86 on the day, the dollar volume was approximately $30.22 million. The shares have shown a positive weekly performance of 11.57% and its price on 08/28/20 gained nearly 7.92%. Currently, there are 63.71M common shares owned by the public and among those 61.59M shares have been available to trade.

Incidentally, analysts’ outlook for the Denny’s Corporation stock is 2.10 for the next 12 months.

Insiders at the company have transacted a total of 50 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 22 of these insider trades were purchases, accounting for 398,369 shares. Insider sales of the common stock occurred on 28 occasions, with total insider shares sold totaling 376,685 shares.

The top 3 mutual fund holders in Denny’s Corporation are Wells Fargo Special Small Cap Val, Vanguard Total Stock Market Index, and T. Rowe Price QM US Small Cap Gro. Wells Fargo Special Small Cap Val owns 3.72 million shares of the company’s stock, all valued at over $33.07 million. The company bought an additional 28500.0 shares recently to bring their total holdings to about 5.84% of the shares outstanding. Vanguard Total Stock Market Index bought 0.21 million shares to see its total holdings expand to 1.72 million shares valued at over $15.31 million and representing 2.71% of the shares outstanding. T. Rowe Price QM US Small Cap Gro sold 50000.0 shares to bring its total holdings to over 1.62 million shares at a value of $14.43 million. T. Rowe Price QM US Small Cap Gro now owns shares totaling to 2.55% of the shares outstanding.

Shares of Denny’s Corporation (NASDAQ: DENN) opened at $11.12, up $0.13 from a prior closing price of $10.99. However, the script later closed the day at $11.86, up 7.92%. The company’s stock has a 5-day price change of 11.57% and 6.08% over the past three months. DENN shares are trading -40.34% year to date (YTD), with the 12-month market performance down to -49.51% lower. It has a 12-month low price of $4.50 and touched a high of $23.88 over the same period. Currently, 2.55 million shares have been traded, compared to an average intraday trading volume of 1.83 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 17.37%, 22.62%, and -14.22% respectively.

Institutional ownership of Denny’s Corporation (NASDAQ: DENN) shares accounts for 72.90% of the company’s 63.71M shares outstanding. Mutual fund holders own 41.47%, while other institutional holders and individual stakeholders account for 54.98% and 29.75% respectively.

It has a market capitalization of $700.21M and a beta (3y monthly) value of 1.41. The stock’s trailing 12-month PE ratio is 13.89, while the earnings-per-share (ttm) stands at $0.85. The company has a PEG of 1.54 and a Quick Ratio of 0.80. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.07% over the week and 5.88% over the month.

Analysts forecast that Denny’s Corporation (DENN) will achieve an EPS of -$0.03 for the current quarter, $0.1 for the next quarter and $0.49 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.06 while analysts give the company a high EPS estimate of $0.02. Comparatively, EPS for the current quarter was $0.18 a year ago. EPS should shrink at an annualized rate of 9.00% over the next five years, compared to 38.70% over the past 5-year period.

Looking at the support for the DENN, a number of firms have released research notes about the stock. Stephens stated their Equal-Weight rating for the stock in a research note on July 13, 2020, with the firm’s price target at $12-$10. SunTrust coverage for the Denny’s Corporation (DENN) stock in a research note released on June 17, 2020 offered a Buy rating with a price target of $15. SunTrust was of a view on April 01, 2020 that the stock is Buy, while Stephens gave the stock Overweight rating on March 10, 2020, issuing a price target of $19. SunTrust on their part issued Hold rating on December 10, 2019.


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