Denny’s Corp (DENN) is a good investment, but the stock may be undervalued

While Denny’s Corp has underperformed by -1.98%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, DENN fell by -51.68%, with highs and lows ranging from $9.52 to $4.51, whereas the simple moving average fell by -30.64% in the last 200 days.

On February 07, 2025, Wedbush Upgraded Denny’s Corp (NASDAQ: DENN) to Outperform. A report published by Citigroup on October 25, 2024, Upgraded its rating to ‘Buy’ for DENN. Piper Sandler also rated DENN shares as ‘Neutral’, setting a target price of $12 on the company’s shares in an initiating report dated July 18, 2023. Wedbush December 21, 2022d the rating to Neutral on December 21, 2022, and set its price target from $12.50 to $10. CL King initiated its ‘Buy’ rating for DENN, as published in its report on August 29, 2022. Wedbush’s report from August 23, 2022 suggests a price prediction of $12.50 for DENN shares, giving the stock a ‘Outperform’ rating. Wedbush also rated the stock as ‘Neutral’.

Analysis of Denny’s Corp (DENN)

Further, the quarter-over-quarter decrease in sales is -0.59%, showing a negative trend in the upcoming months.

Denny’s Corp’s future performance can be predicted by a variety of well-rounded types of analysis and research, with equity being one of the most crucial ones. Taking into account the quick ratio of the company, currently set at 0.40, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.

For any stock, average volume can be an extremely valuable indicator of volatility, and DENN is registering an average volume of 1.11M. On a monthly basis, the volatility of the stock is set at 7.07%, whereas on a weekly basis, it is put at 5.97%, with a loss of -14.40% over the past seven days. Furthermore, long-term investors anticipate a median target price of $7.50, showing growth from the present price of $4.46, which can serve as yet another indication of whether DENN is worth investing in or should be passed over.

How Do You Analyze Denny’s Corp Shares?

A giant in the Restaurants market, Denny’s Corp (DENN) is based in the USA. When comparing Denny’s Corp shares with other companies under Consumer Cyclical, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 10.86, there is a growth in quarterly earnings of 141.64%.

Besides checking the fundamentals, you should also know how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 3.45%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 86.56% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.

DENN shares are owned by institutional investors to the tune of 86.56% at present.

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