Domino’s Pizza Inc (DPZ) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Domino’s Pizza Inc (NYSE:DPZ) from a hold rating to a buy rating in a research report sent to investors on Monday morning. Zacks Investment Research currently has $200.00 price objective on the restaurant operator’s stock.
According to Zacks, “Domino's shares have outpaced the industry year to date. The company’s solid brand positioning should continue to boost sales in the upcoming quarters. Also, efforts to accelerate its presence in high-growth international markets bode well. Notably, the company’s revenues and earnings surpassed the Zacks Consensus Estimate in each of the trailing five quarters. In fact, second-quarter 2017 marked the 25th and 94th consecutive quarter of positive same-store-sales domestically and internationally, respectively. Going forward, Domino'sinitiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help sustain the momentum. Yet, higher costs and negative currency translation are likely to hurt profits. A soft consumer spending environment in the U.S. restaurant space might limit revenue growth too.”
Several other research firms have also commented on DPZ. Longbow Research lowered shares of Domino’s Pizza from a buy rating to a neutral rating in a report on Friday, June 9th. BidaskClub upgraded shares of Domino’s Pizza from a buy rating to a strong-buy rating in a report on Thursday, June 22nd. BTIG Research restated a buy rating and issued a $233.00 price target (up previously from $213.00) on shares of Domino’s Pizza in a report on Thursday, June 1st. Sanford C. Bernstein restated a market perform rating and issued a $215.00 price target on shares of Domino’s Pizza in a report on Tuesday, July 25th. Finally, Instinet restated a neutral rating and issued a $198.00 price target (up previously from $196.00) on shares of Domino’s Pizza in a report on Saturday, July 22nd. Thirteen analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. Domino’s Pizza presently has an average rating of Hold and an average target price of $193.66.
Domino’s Pizza (NYSE DPZ) opened at 182.26 on Monday. The firm’s 50 day moving average is $193.23 and its 200-day moving average is $194.22. The company has a market cap of $8.79 billion, a P/E ratio of 36.22 and a beta of 0.35. Domino’s Pizza has a 52 week low of $145.00 and a 52 week high of $221.58.
Domino’s Pizza (NYSE:DPZ) last released its quarterly earnings data on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.23 by $0.09. The company had revenue of $628.61 million during the quarter, compared to analysts’ expectations of $609.87 million. Domino’s Pizza had a net margin of 9.40% and a negative return on equity of 13.28%. The firm’s quarterly revenue was up 14.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.98 EPS. On average, analysts predict that Domino’s Pizza will post $5.69 earnings per share for the current fiscal year.
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Domino’s Pizza declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 2nd that authorizes the company to buyback $1.25 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to buy up to 13.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.
The business also recently declared a quarterly dividend, which will be paid on Friday, September 29th. Shareholders of record on Friday, September 15th will be paid a dividend of $0.46 per share. The ex-dividend date is Thursday, September 14th. This represents a $1.84 dividend on an annualized basis and a yield of 1.01%. Domino’s Pizza’s payout ratio is 36.65%.
Hedge funds and other institutional investors have recently modified their holdings of the stock. IHT Wealth Management LLC raised its position in shares of Domino’s Pizza by 19.5% in the first quarter. IHT Wealth Management LLC now owns 569 shares of the restaurant operator’s stock worth $105,000 after buying an additional 93 shares during the last quarter. Commonwealth Bank of Australia raised its position in shares of Domino’s Pizza by 25.0% in the second quarter. Commonwealth Bank of Australia now owns 500 shares of the restaurant operator’s stock worth $105,000 after buying an additional 100 shares during the last quarter. Toronto Dominion Bank raised its position in shares of Domino’s Pizza by 12.2% in the second quarter. Toronto Dominion Bank now owns 590 shares of the restaurant operator’s stock worth $125,000 after buying an additional 64 shares during the last quarter. TrimTabs Asset Management LLC raised its position in shares of Domino’s Pizza by 88.4% in the first quarter. TrimTabs Asset Management LLC now owns 682 shares of the restaurant operator’s stock worth $126,000 after buying an additional 320 shares during the last quarter. Finally, Acrospire Investment Management LLC bought a new position in shares of Domino’s Pizza during the second quarter worth about $127,000. Institutional investors and hedge funds own 94.28% of the company’s stock.
About Domino’s Pizza
Domino’s Pizza, Inc is a pizza restaurant chain company. As of January 1, 2017, the Company operated in over 13,800 locations in over 85 markets around the world. The Company operates through three segments: domestic stores, international franchise and supply chain. Its basic menu features pizza products in various sizes and crust types.
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