Domino’s Pizza Inc (DPZ) Upgraded by Zacks Investment Research to “Buy”
Domino’s Pizza Inc (NYSE:DPZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday. The firm presently has a $217.00 target price on the restaurant operator’s stock. Zacks Investment Research‘s price target suggests a potential upside of 11.95% from the stock’s previous close.
According to Zacks, “Domino's Pizza’s second-quarter 2017 adjusted earnings of $1.32 per share beat the Zacks Consensus Estimate by 8.2% and climbed 34.7% year over year (y/y) on strong sales and a lower share count. Revenues rose 14.8% y/y to $628.6 million and topped the consensus mark by 2.5%. In fact, the company has been posting positive comps in domestic and international markets over the last several quarters. However, strength in domestic markets was overshadowed by weak international comps growth, particularly in Europe, in this quarter. Nevertheless, initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help regain the momentum. In addition, the company’s shares outpaced the industry year to date. Yet, higher labor costs and expenses related to initiatives might dent margins. Also, soft consumer spending environment in the U.S. restaurants space and adverse forex translation remain concerns.”
A number of other research firms also recently issued reports on DPZ. BidaskClub downgraded shares of Domino’s Pizza from a “strong-buy” rating to a “buy” rating in a report on Tuesday, June 13th. Instinet restated a “neutral” rating and issued a $198.00 target price (up from $196.00) on shares of Domino’s Pizza in a report on Saturday, July 22nd. BTIG Research restated a “buy” rating and issued a $233.00 target price (up from $213.00) on shares of Domino’s Pizza in a report on Thursday, June 1st. Wells Fargo & Company restated a “market perform” rating and issued a $212.00 target price on shares of Domino’s Pizza in a report on Tuesday, July 18th. Finally, Jefferies Group LLC restated a “hold” rating and issued a $185.00 target price (up from $180.00) on shares of Domino’s Pizza in a report on Saturday, April 29th. Eleven analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $195.38.
Domino’s Pizza (NYSE:DPZ) traded down 0.22% during mid-day trading on Thursday, hitting $193.40. 227,874 shares of the stock traded hands. Domino’s Pizza has a 12-month low of $143.47 and a 12-month high of $221.58. The firm’s 50-day moving average is $204.95 and its 200-day moving average is $193.17. The company has a market cap of $9.33 billion, a price-to-earnings ratio of 38.43 and a beta of 0.35.
Domino’s Pizza (NYSE:DPZ) last released its earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.09. Domino’s Pizza had a net margin of 9.40% and a negative return on equity of 13.28%. The firm had revenue of $628.61 million during the quarter, compared to the consensus estimate of $609.87 million. During the same period in the previous year, the firm earned $0.98 earnings per share. Domino’s Pizza’s revenue was up 14.8% compared to the same quarter last year. Equities research analysts expect that Domino’s Pizza will post $5.70 EPS for the current year.
Domino’s Pizza declared that its board has approved a share repurchase program on Wednesday, August 2nd that permits the company to buyback $1.25 billion in outstanding shares. This buyback authorization permits the restaurant operator to repurchase up to 13.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s management believes its stock is undervalued.
Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. boosted its position in Domino’s Pizza by 2,338.4% in the first quarter. BlackRock Inc. now owns 5,344,824 shares of the restaurant operator’s stock worth $985,052,000 after buying an additional 5,125,632 shares during the last quarter. Ameriprise Financial Inc. boosted its position in Domino’s Pizza by 499.8% in the first quarter. Ameriprise Financial Inc. now owns 1,750,503 shares of the restaurant operator’s stock worth $322,614,000 after buying an additional 1,458,667 shares during the last quarter. William Blair Investment Management LLC purchased a new position in Domino’s Pizza during the second quarter worth approximately $113,818,000. Renaissance Technologies LLC boosted its position in Domino’s Pizza by 32.1% in the first quarter. Renaissance Technologies LLC now owns 2,130,700 shares of the restaurant operator’s stock worth $392,688,000 after buying an additional 517,200 shares during the last quarter. Finally, Old Mutual Global Investors UK Ltd. boosted its position in Domino’s Pizza by 680.8% in the second quarter. Old Mutual Global Investors UK Ltd. now owns 532,689 shares of the restaurant operator’s stock worth $112,679,000 after buying an additional 464,468 shares during the last quarter. 98.55% of the stock is currently owned by institutional investors and hedge funds.
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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