Zacks Investment Research Downgrades Domino’s Pizza (DPZ) to Hold
Zacks Investment Research cut shares of Domino’s Pizza (NYSE:DPZ) from a buy rating to a hold rating in a report issued on Thursday.
According to Zacks, “Domino's shares have outpaced the industry in a year’s time, owing to better-than-expected earnings in nine out of the trailing ten quarters. Notably, the third quarter marked the company’s respective 30th and 99th consecutive quarter of positive same-store sales domestically and internationally. Meanwhile, we believe that Domino's solid brand positioning might continue to boost sales in the upcoming quarters. Furthermore, efforts to accelerate the company’s presence in the high-growth international markets bode well. Domino's initiatives on the digital front, increased store counts, focus on re-imaging and other sales-boosting strategies are expected to help sustain the momentum in the months ahead. Earnings estimates for the current year have also gone up over the past 60 days. However, higher costs and negative currency translation are likely to hurt profits.”
Several other equities research analysts also recently commented on DPZ. Mizuho set a $300.00 target price on shares of Domino’s Pizza and gave the stock a buy rating in a research report on Wednesday, October 17th. UBS Group reiterated a hold rating on shares of Domino’s Pizza in a research report on Wednesday, November 7th. Maxim Group reiterated a buy rating and set a $310.00 target price on shares of Domino’s Pizza in a research report on Friday, November 16th. Citigroup cut their target price on shares of Domino’s Pizza from $298.00 to $293.00 and set a neutral rating on the stock in a research report on Monday, October 22nd. Finally, Wells Fargo & Co lifted their target price on shares of Domino’s Pizza from $255.00 to $260.00 and gave the stock a market perform rating in a research report on Monday, October 8th. They noted that the move was a valuation call. Nine equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. Domino’s Pizza currently has a consensus rating of Buy and a consensus target price of $276.77.
Domino’s Pizza (NYSE:DPZ) last posted its quarterly earnings results on Tuesday, October 16th. The restaurant operator reported $1.95 earnings per share for the quarter, beating analysts’ consensus estimates of $1.75 by $0.20. Domino’s Pizza had a net margin of 10.60% and a negative return on equity of 11.92%. The company had revenue of $786.00 million for the quarter, compared to the consensus estimate of $789.10 million. During the same period last year, the company posted $1.27 EPS. The firm’s quarterly revenue was up 22.1% compared to the same quarter last year. Sell-side analysts anticipate that Domino’s Pizza will post 8.45 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, December 28th. Shareholders of record on Friday, December 14th were issued a dividend of $0.55 per share. The ex-dividend date of this dividend was Thursday, December 13th. This represents a $2.20 annualized dividend and a yield of 0.88%. Domino’s Pizza’s payout ratio is 41.20%.
In other Domino’s Pizza news, CEO Richard E. Allison, Jr. sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, November 29th. The shares were sold at an average price of $279.31, for a total transaction of $1,396,550.00. Following the completion of the transaction, the chief executive officer now owns 44,864 shares in the company, valued at approximately $12,530,963.84. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 3.97% of the stock is currently owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the business. Willingdon Wealth Management bought a new position in Domino’s Pizza during the 3rd quarter worth approximately $111,000. Qube Research & Technologies Ltd bought a new position in Domino’s Pizza during the 2nd quarter worth approximately $119,000. First Hawaiian Bank bought a new stake in shares of Domino’s Pizza in the 3rd quarter valued at $142,000. Flagship Harbor Advisors LLC bought a new stake in shares of Domino’s Pizza in the 2nd quarter valued at $166,000. Finally, Harvest Fund Management Co. Ltd increased its stake in shares of Domino’s Pizza by 257.1% in the 3rd quarter. Harvest Fund Management Co. Ltd now owns 582 shares of the restaurant operator’s stock valued at $172,000 after acquiring an additional 419 shares in the last quarter. Hedge funds and other institutional investors own 90.24% of the company’s stock.
About Domino’s Pizza
Domino's Pizza, Inc, through its subsidiaries, operates as a pizza delivery company in the United States and internationally. It operates through three segments: Domestic Stores, International Franchise, and Supply Chain. The company offers pizzas under the Domino's Pizza brand name through company-owned and franchised Domino's Pizza stores.
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