Zacks Investment Research downgraded 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.”
DPZ has been the subject of several other research reports. UBS Group began coverage on shares of Domino’s Pizza in a research report on Monday, October 22nd. They issued a neutral rating and a $285.00 price target for the company. Maxim Group reissued a buy rating and issued a $310.00 price target on shares of Domino’s Pizza in a research report on Friday, November 16th. Citigroup reduced their price target on shares of Domino’s Pizza from $298.00 to $293.00 and set a neutral rating for the company in a research report on Monday, October 22nd. Mizuho set a $300.00 price target on shares of Domino’s Pizza and gave the company a buy rating in a research report on Wednesday, October 17th. Finally, Wells Fargo & Co lifted their price target on shares of Domino’s Pizza from $255.00 to $260.00 and gave the company a market perform rating in a research report on Monday, October 8th. They noted that the move was a valuation call. Nine research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. The company currently has an average rating of Buy and a consensus price target 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 (EPS) for the quarter, beating the consensus estimate 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 business had revenue of $786.00 million during the quarter, compared to the consensus estimate of $789.10 million. During the same quarter last year, the firm posted $1.27 EPS. Domino’s Pizza’s revenue was up 22.1% compared to the same quarter last year. Equities analysts forecast that Domino’s Pizza will post 8.45 earnings per share for the current year.
The company also recently disclosed 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. This represents a $2.20 dividend on an annualized basis and a yield of 0.88%. The ex-dividend date of this dividend was Thursday, December 13th. Domino’s Pizza’s dividend payout ratio is 41.20%.
In other Domino’s Pizza news, CEO Richard E. Allison, Jr. sold 5,000 shares of Domino’s Pizza stock in a transaction 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 transaction, the chief executive officer now directly owns 44,864 shares of the company’s stock, valued at approximately $12,530,963.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.97% of the stock is owned by insiders.
Institutional investors and hedge funds have recently bought and sold shares of the business. FMR LLC boosted its holdings in shares of Domino’s Pizza by 150.2% in the 2nd quarter. FMR LLC now owns 1,184,342 shares of the restaurant operator’s stock worth $334,186,000 after buying an additional 711,035 shares during the last quarter. Capital International Investors purchased a new position in shares of Domino’s Pizza in the 3rd quarter worth about $59,744,000. Massachusetts Financial Services Co. MA boosted its holdings in shares of Domino’s Pizza by 319.2% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 225,664 shares of the restaurant operator’s stock worth $66,526,000 after buying an additional 171,832 shares during the last quarter. Capital Research Global Investors boosted its holdings in shares of Domino’s Pizza by 38.4% in the 3rd quarter. Capital Research Global Investors now owns 554,451 shares of the restaurant operator’s stock worth $163,452,000 after buying an additional 153,951 shares during the last quarter. Finally, Janus Henderson Group PLC boosted its holdings in shares of Domino’s Pizza by 183.9% in the 3rd quarter. Janus Henderson Group PLC now owns 169,974 shares of the restaurant operator’s stock worth $50,109,000 after buying an additional 110,100 shares during the last quarter. 90.24% of the stock is currently owned by hedge funds and other institutional investors.
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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