DENN Stock Analysis: Buy, Sell, or Hold?

DENN - DENNY'S CORP

RETAIL-EATING PLACES
$6.25
-0.01 (-0.16%) β–Ό
WAIT
LOW Confidence
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Last Updated: January 16, 2026
Earnings: Feb 17, 2026 16d

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
πŸ“Š MIXED SIGNALS: DENN shows conflicting indicators. Wait for confirmation before entering.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$11.85
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$7.36
15.0% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 15.5x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: DENN is currently trading at $6.25, which is considered extended relative to its 30-day fair value range of $6.21 to $6.25. The stock's valuation (Forward PE: 15.9) is in line with its historical norms (15.5). At these levels, the market is pricing in 1.0% annual earnings growth.

Technical Outlook: Technically, DENN is in a strong uptrend. The price is currently testing key support at $6.21. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. Implied Volatility is high (71th percentile), indicating expensive options premiums. This environment often favors selling options or covered calls to generate income. Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED
Fair Price Range $6.21 - $6.25
Company Quality Score 58/100 (HOLD)
Options IV Signal 71th percentile (EVENT RISK)
Volume Confirmation HIGH
Confidence Score 40.0%

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All Signals

  • BEARISH: Price extended above range
  • BEARISH: Options expensive (IV 71th percentile)
  • NEUTRAL: Mixed technical signals (55/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($6.12)
  • BULLISH: Expecting earnings turnaround to 1.0% growth with 1.3% revenue growth

Fair Price Analysis

30-Day Fair Range $6.21 - $6.25
Current vs Fair Value EXTENDED
Expected Move (7 Days) Β±$0.86 (13.7%)

Support & Resistance Levels

Support Level $6.21
Resistance Level $6.26
Current Trend Strong Uptrend

Fundamental Context

Forward P/E (Next Year Est.) 15.92
Wall Street Target $6.13 (-2.0%)
Revenue Growth (YoY) 1.3%
Earnings Growth (YoY) -91.7%
Profit Margin 2.2%
Valuation Premium vs History +1.0% premium
PE vs Historical 15.9 vs 15.5 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +1.0% (market-implied from PE analysis)
1-Year Target $6.31 (+1%)
2-Year Target $6.38 (+2%)
3-Year Target $6.44 (+3%)
3-Yr Target (if PE normalizes) (PE: 16β†’16) PE COMPRESSION $6.27 (+0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.4, Growth: 64.1%) $8.94 (+43%)
Base: (SPY PE: 15.9, Growth: 64.1%) $6.37 (+2%)
Bear: (PE: 13.5, Growth: 64.1%) $5.42 (-13%)
Last updated: January 31, 2026 12:03 AM ET
Data refreshes hourly during market hours. Next update: 1:03 AM
πŸ”₯ Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
3
Buys
0
Sells
+
Net
INSIDERS BUYING
Recent Transactions
Jumana Capital Investmen… BUY 9347 shares 2025-10-21
Jumana Capital Investmen… BUY 162210 shares 2025-10-20
Jumana Capital Investmen… BUY 11750 shares 2025-10-17

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Advanced DENN Option Strategies

Professional options setups generated by AI based on today's DENN price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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