Domino’s Pizza Inc. (DPZ) Stock Rating Lowered by Zacks Investment Research
Domino’s Pizza Inc. (NYSE:DPZ) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Domino's Pizza has considerable international presence and is thus highly vulnerable to fluctuations in exchange rates. Despite the weakening of the U.S. dollar in the first half of 2016 compared to the prior year, currency headwinds are expected to keep profits under pressure. In fact, the company expects foreign currency to have an $8 million to $12 million year-over-year impact on pretax earnings in 2016. Moreover, higher labor costs and expenses related to sales initiatives are likely to remain headwinds. Nonetheless, the company has been posting positive comps over the past four quarters, and its digital ordering system, focus on re-imaging and other sales initiatives are expected to help it sustain the momentum. Meanwhile, the company has mixed record of earnings surprises in recent quarters. However, soft consumer spending environment in the U.S. restaurant space may dent sales.”
Several other brokerages also recently weighed in on DPZ. Citigroup Inc. boosted their target price on Domino’s Pizza from $137.00 to $159.00 and gave the stock a “neutral” rating in a research note on Tuesday, September 13th. Beaufort Securities reaffirmed a “buy” rating on shares of Domino’s Pizza in a research report on Sunday, July 31st. Jefferies Group reaffirmed a “hold” rating on shares of Domino’s Pizza in a research report on Thursday, August 4th. TheStreet raised Domino’s Pizza from a “hold” rating to a “buy” rating in a research report on Monday, July 25th. Finally, Maxim Group lifted their price target on Domino’s Pizza from $127.00 to $135.00 and gave the stock a “hold” rating in a research report on Friday, July 22nd. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have issued a buy rating to the stock. Domino’s Pizza currently has a consensus rating of “Hold” and an average price target of $139.96.
Shares of Domino’s Pizza (NYSE:DPZ) opened at 152.61 on Tuesday. The company’s 50 day moving average price is $148.45 and its 200 day moving average price is $135.08. The stock has a market cap of $7.36 billion, a PE ratio of 41.08 and a beta of 0.78. Domino’s Pizza has a 52-week low of $100.56 and a 52-week high of $153.28.
Domino’s Pizza (NYSE:DPZ) last announced its earnings results on Thursday, July 21st. The company reported $0.98 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.94 by $0.04. Domino’s Pizza had a negative return on equity of 11.59% and a net margin of 8.45%. The firm had revenue of $547.34 million for the quarter, compared to the consensus estimate of $533.44 million. During the same period in the previous year, the business earned $0.81 EPS. The firm’s revenue for the quarter was up 12.0% on a year-over-year basis. On average, analysts anticipate that Domino’s Pizza will post $4.14 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 30th. Shareholders of record on Thursday, September 15th will be paid a dividend of $0.38 per share. The ex-dividend date is Tuesday, September 13th. This represents a $1.52 annualized dividend and a yield of 1.00%. Domino’s Pizza’s dividend payout ratio (DPR) is currently 40.86%.
In other Domino’s Pizza news, insider Richard E. Allison, Jr. sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, August 19th. The stock was sold at an average price of $146.92, for a total transaction of $2,938,400.00. Following the completion of the sale, the insider now directly owns 42,080 shares in the company, valued at approximately $6,182,393.60. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director James A. Goldman sold 3,095 shares of the business’s stock in a transaction that occurred on Monday, July 25th. The stock was sold at an average price of $147.66, for a total value of $457,007.70. Following the sale, the director now owns 15,167 shares of the company’s stock, valued at $2,239,559.22. The disclosure for this sale can be found here. Company insiders own 5.03% of the company’s stock.
A number of large investors have recently bought and sold shares of DPZ. Capital World Investors raised its stake in Domino’s Pizza by 2.2% in the second quarter. Capital World Investors now owns 5,493,504 shares of the company’s stock worth $721,737,000 after buying an additional 119,188 shares during the period. Vanguard Group Inc. raised its stake in Domino’s Pizza by 2.1% in the second quarter. Vanguard Group Inc. now owns 3,611,585 shares of the company’s stock worth $474,489,000 after buying an additional 74,268 shares during the period. BlackRock Fund Advisors raised its stake in Domino’s Pizza by 5.3% in the second quarter. BlackRock Fund Advisors now owns 1,785,461 shares of the company’s stock worth $234,574,000 after buying an additional 89,797 shares during the period. BlackRock Institutional Trust Company N.A. raised its stake in Domino’s Pizza by 5.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,593,162 shares of the company’s stock worth $209,310,000 after buying an additional 77,122 shares during the period. Finally, State Street Corp raised its stake in Domino’s Pizza by 17.6% in the second quarter. State Street Corp now owns 1,583,984 shares of the company’s stock worth $208,104,000 after buying an additional 237,447 shares during the period. Institutional investors own 95.61% of the company’s stock.
About Domino’s Pizza
Domino’s Pizza, Inc is a pizza restaurant chain. The Company operates pizza stores at 12,500 locations in over 80 markets. It operates through three segments: domestic stores, international franchise and supply chain. Its Domestic Stores segment consists primarily of its franchise operations, through which it operates network of over 4,820 franchised stores located in the United States.
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