Domino’s Pizza Inc. (DPZ) Downgraded by Zacks Investment Research to “Sell”
Domino’s Pizza Inc. (NYSE:DPZ) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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 research firms have also recently commented on DPZ. Citigroup Inc. boosted their target price on Domino’s Pizza from $137.00 to $159.00 and gave the company a “neutral” rating in a research note on Tuesday, September 13th. Beaufort Securities reiterated a “buy” rating on shares of Domino’s Pizza in a research note on Sunday, July 31st. Jefferies Group reiterated a “hold” rating on shares of Domino’s Pizza in a research note on Thursday, August 4th. TheStreet upgraded Domino’s Pizza from a “hold” rating to a “buy” rating in a research note on Monday, July 25th. Finally, Maxim Group upped their price objective on Domino’s Pizza from $127.00 to $135.00 and gave the stock a “hold” rating in a research note on Friday, July 22nd. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have assigned a buy rating to the stock. Domino’s Pizza has an average rating of “Hold” and a consensus target price of $139.96.
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Shares of Domino’s Pizza (NYSE:DPZ) traded up 0.13% on Tuesday, reaching $151.70. The company had a trading volume of 152,251 shares. The firm has a market capitalization of $7.32 billion, a price-to-earnings ratio of 40.83 and a beta of 0.78. The company’s 50-day moving average price is $148.12 and its 200-day moving average price is $134.82. Domino’s Pizza has a 52-week low of $100.56 and a 52-week high of $152.78.
Domino’s Pizza (NYSE:DPZ) last released its earnings results on Thursday, July 21st. The company reported $0.98 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.94 by $0.04. The firm had revenue of $547.34 million for the quarter, compared to analysts’ expectations of $533.44 million. Domino’s Pizza had a negative return on equity of 11.59% and a net margin of 8.45%. The business’s quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.81 EPS. On average, analysts predict that Domino’s Pizza will post $4.14 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 30th. Stockholders of record on Thursday, September 15th will be issued a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 1.00%. The ex-dividend date of this dividend is Tuesday, September 13th. Domino’s Pizza’s dividend payout ratio (DPR) is currently 40.86%.
In other news, Director James A. Goldman sold 3,095 shares of the stock in a transaction on Monday, July 25th. The stock was sold at an average price of $147.66, for a total transaction of $457,007.70. Following the sale, the director now directly owns 15,167 shares of the company’s stock, valued at approximately $2,239,559.22. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Richard E. Allison, Jr. sold 20,000 shares of the stock in a transaction on Friday, August 19th. The stock was sold at an average price of $146.92, for a total value of $2,938,400.00. Following the sale, the insider now directly owns 42,080 shares in the company, valued at $6,182,393.60. The disclosure for this sale can be found here. Insiders own 5.03% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the company. Macquarie Group Ltd. bought a new stake in Domino’s Pizza during the second quarter valued at about $1,117,000. Northwestern Mutual Investment Management Company LLC increased its stake in shares of Domino’s Pizza by 0.7% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 8,658 shares of the company’s stock valued at $1,137,000 after buying an additional 62 shares in the last quarter. Mason Street Advisors LLC acquired a new stake in shares of Domino’s Pizza during the second quarter valued at $3,005,000. Public Employees Retirement System of Ohio increased its stake in shares of Domino’s Pizza by 127.0% in the second quarter. Public Employees Retirement System of Ohio now owns 37,679 shares of the company’s stock valued at $4,950,000 after buying an additional 21,079 shares in the last quarter. Finally, Calvert Investment Management Inc. increased its stake in shares of Domino’s Pizza by 4.3% in the second quarter. Calvert Investment Management Inc. now owns 3,027 shares of the company’s stock valued at $398,000 after buying an additional 125 shares in the last quarter. 95.62% of the stock is currently owned by institutional investors.
Domino’s Pizza Company Profile
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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